Perpetua Resources Corp. press release
MP Materials Reports First Quarter 2025 Results
NASDAQ - Nasdaq Stock Market · Gold · Antimony · Silver · United States
Revenue increased 25% year over year to $60.8 million
Record NdPr production of 563 metric tons, a 36% sequential increase
Second best quarterly REO production of 12,213 metric tons, a 10% increase year over year
NdPr sales volumes more than doubled year over year to 464 metric tons
Magnetics division makes first metal deliveries, generating $5.2 million in revenue and positive Adjusted EBITDA
Received third $50 million customer prepayment on April 1
Intensifying engagement from industry and government
MP Materials Corp. (NYSE: MP) (“MP Materials” or the “Company”), today announced financial and operational results for the three months ended March 31, 2025.
“MP Materials delivered strong execution across both our Materials and Magnetics divisions in the first quarter, marked by record NdPr oxide production and the initial sales of magnetic precursor materials,” said James Litinsky, Founder, Chairman, and CEO of MP Materials. “Given recent events, it is now undeniable that the United States must reshore critical industries like rare earth magnetics — something we have been building toward since day one.” Litinsky continued, “With rapidly intensifying engagement from both industry and government, MP Materials is leading this effort — underscoring our growing strategic and economic importance at a pivotal moment for American industrial policy.”
First Quarter 2025 Consolidated Financial Highlights
| | For the three months ended March 31, | | 2025 vs. 2024 | | | | | | | | | | | | | (in thousands, except per share data, unaudited) | | 2025 | | | | 2024 | | | Amount Change | | % Change | | | | | Financial Measures: | | | | | | | | | | | | | | | | Total revenue | $ | 60,810 | | | $ | 48,684 | | | $ | 12,126 | | | 25 | % | | Net income (loss) | $ | (22,648 | ) | | $ | 16,489 | | | $ | (39,137 | ) | | N/M | | | Adjusted EBITDA (1) | $ | (2,696 | ) | | $ | (1,233 | ) | | $ | (1,463 | ) | | (119 | )% | | Adjusted Net Loss (1) | $ | (19,898 | ) | | $ | (7,492 | ) | | $ | (12,406 | ) | | (166 | )% | | Diluted EPS | $ | (0.14 | ) | | $ | (0.08 | ) | | $ | (0.06 | ) | | (75 | )% | | Adjusted Diluted EPS (1) | $ | (0.12 | ) | | $ | (0.04 | ) | | $ | (0.08 | ) | | (200 | )% |
| N/M = Not meaningful. | | | | (1) | | See “Use of Non-GAAP Financial Measures” below for the definitions of Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Diluted EPS. See tables below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures. |
First Quarter 2025 Consolidated Review
Total revenue increased 25% year over year to $60.8 million, primarily as a result of higher production of separated products, resulting in a greater mix of NdPr oxide and metal revenue in the current period. Additionally, during the three months ended March 31, 2025, we began recognizing revenue from the sales of magnetic precursor products, with no comparable revenue in the prior year period. These were offset by the decrease in rare earth concentrate revenues, impacted by the ramp-up in midstream operations, as a significantly higher portion of REO produced is refined and sold as NdPr oxide and metal.
Adjusted EBITDA declined by $1.5 million year over year to $(2.7) million, driven mainly by higher cost of sales due to an increase in separated product sales, as well as slightly higher general and administrative expenses. Cost of sales was primarily impacted by higher production costs related to a greater mix of refined product sales compared to the prior year period. Separated product production costs are currently elevated on a per-unit basis given the currently low utilization of the refining facilities as we ramp to normalized production levels. The increase in cost of sales was partially offset by lower sales of REO in concentrate as well as a lower inventory reserve recorded in the quarter, which decreased by $2.8 million when compared to the prior year period. Selling, general, and administrative expenses were impacted in part by increased employee headcount to support our downstream expansion. Adjusted EBITDA was also favorably impacted by the initial sales of magnetic precursor products, which drove a $3.2 million year over year improvement in the Magnetics Segment Adjusted EBITDA.
Adjusted Net Loss increased by $12.4 million year over year to $(19.9) million, mainly due to higher interest expense from the 2030 convertible notes, as well as slightly lower interest income. Also impacting the comparison was higher depreciation expense resulting from an increase in capital assets placed into service over the last year and the lower Adjusted EBITDA. These changes were partially offset by a higher income tax benefit primarily due to a higher pre-tax loss in the current quarter.
Net loss increased by $39.1 million year over year to $(22.6) million, primarily due to a $46.3 million non-cash gain in the first quarter of 2024 associated with the early extinguishment of a portion of convertible notes due in 2026, as well as the factors driving the higher Adjusted Net Loss discussed above. Also impacting the comparison was a $7.0 million non-cash gain in the current quarter from changes in fair value of the derivative instrument related to the redemption feature included in the portion of the 2030 convertible notes that were issued in December 2024.
Diluted earnings per share (“EPS”) decreased by $0.06 year over year to a diluted loss per share of $(0.14), in line with the change in net income (loss) discussed above. Adjusted Diluted EPS decreased by $0.08 to $(0.12) in line with the increase in Adjusted Net Loss discussed above.
First Quarter 2025 Segment Financial Highlights
| | For the three months ended March 31, | | 2025 vs. 2024 | | | | | | | | | | | | | (in thousands, unaudited) | | 2025 | | | | 2024 | | | Amount Change | | % Change | | | | | Segment Financials: | | | | | | | | | | | | | | | | Revenue | | | | | | | | | | | | | | | | Materials Segment | $ | 55,619 | | | $ | 48,684 | | | $ | 6,935 | | | 14 | % | | Magnetics Segment | | 5,191 | | | | — | | | | 5,191 | | | N/M | | | Total revenue | $ | 60,810 | | | $ | 48,684 | | | $ | 12,126 | | | 25 | % | | | | | | | | | | | | | | | | | | Segment Adjusted EBITDA (1) | | | | | | | | | | | | | | | | Materials Segment | $ | 3,758 | | | $ | 7,339 | | | $ | (3,581 | ) | | (49 | )% | | Magnetics Segment | | 493 | | | | (2,707 | ) | | | 3,200 | | | N/M | | | Total Segment Adjusted EBITDA | $ | 4,251 | | | $ | 4,632 | | | $ | (381 | ) | | (8 | )% | | Corporate and other (2) | | (6,947 | ) | | | (5,865 | ) | | | (1,082 | ) | | (18 | )% | | Adjusted EBITDA (3) | $ | (2,696 | ) | | $ | (1,233 | ) | | $ | (1,463 | ) | | (119 | )% |
| N/M = Not meaningful. | | | | (1) | | Segment Adjusted EBITDA is management’s measure of profit or loss required by GAAP in assessing segment performance and deciding how to allocate the Company’s resources. See “Segment Information” below for further information. | | (2) | | Corporate and other is not considered a reportable segment, and is presented solely to reconcile the total of Segment Adjusted EBITDA to Adjusted EBITDA on a consolidated basis. Corporate and other represents costs incurred at the corporate level that are not allocated to the operating segments, specifically relating to executive compensation, investor relations, other corporate costs, and unallocated shared service functions such as legal, information technology, human resources, finance and accounting and supply chain. | | (3) | | See “Use of Non-GAAP Financial Measures” below for definition. See table below for a reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure, net income or loss. |
First Quarter 2025 Materials Segment Financial and Operational Results
| | For the three months ended March 31, | | 2025 vs. 2024 | | | | | | | | | | | (unaudited) | | 2025 | | | 2024 | | Amount Change | | % Change | | | | | Revenue: | (in thousands) | | | | | | | | | | | | | Rare earth concentrate | $ | 30,115 | | $ | 40,076 | | $ | (9,961 | ) | | (25 | )% | | NdPr oxide and metal | | 24,321 | | | 8,327 | | | 15,994 | | | 192 | % | | Other revenue | | 1,183 | | | 281 | | | 902 | | | 321 | % | | Total Materials Segment revenue | $ | 55,619 | | $ | 48,684 | | $ | 6,935 | | | 14 | % | | | | | | | | | | | | | | | | Segment Adjusted EBITDA (1) | $ | 3,758 | | $ | 7,339 | | $ | (3,581 | ) | | (49 | )% | | | | | | | | | | | | | | | | Key Performance Indicators (2) : | (in whole units or dollars) | | | | | | | | | | | | | Rare earth concentrate | | | | | | | | | | | | | | REO Production Volume (MTs) | | 12,213 | | | 11,151 | | | 1,062 | | | 10 | % | | REO Sales Volume (MTs) | | 6,264 | | | 9,332 | | | (3,068 | ) | | (33 | )% | | Realized Price per REO MT | $ | 4,808 | | $ | 4,294 | | $ | 514 | | | 12 | % | | Separated NdPr products | | | | | | | | | | | | | | NdPr Production Volume (MTs) | | 563 | | | 131 | | | 432 | | | 330 | % | | NdPr Sales Volume (MTs) | | 464 | | | 134 | | | 330 | | | 246 | % | | NdPr Realized Price per KG | $ | 52 | | $ | 62 | | $ | (10 | ) | | (16 | )% |
| (1) | | See “Segment Information” below for further information. | | (2) | | See “Key Performance Indicators” below for definitions and further information. |
First Quarter 2025 Materials Segment Review
Materials Segment revenue increased 14% to $55.6 million year over year, driven by a $16.0 million increase in NdPr oxide and metal sales due to a 246% increase in NdPr Sales Volumes, partially offset by a 16% decline in realized pricing. The increased sales volumes were driven by the continued transition to production of midstream products, primarily NdPr oxide. Also impacting the results was a $10.0 million decline in rare earth concentrate revenue due to a 33% decline in REO Sales Volumes from the accelerating ramp in midstream product production, where REO produced, which could otherwise have been sold as rare earth concentrate, was instead used to produce separated rare earth products. REO Production Volumes increased 10% year over year to 12,213 metric tons primarily due to higher recoveries from the continued implementation of Upstream 60K optimizations.
Materials Segment Adjusted EBITDA decreased by $3.6 million year over year to $3.8 million, driven mainly by higher Materials Segment cost of sales (“Segment COS”) due to production costs associated with the higher proportion of separated rare earth products sold in the most recent period. Segment COS for the three months ended March 31, 2025, benefited from lower per-unit production costs of separated products, which still remain temporarily elevated as we ramp our refining capacity, as well as a lower reserve on certain of our work in process and finished goods inventories, which decreased by $2.8 million when compared to the prior year period, as well as the 45X tax credit, which was $2.8 million higher in the current year period.
First Quarter 2025 Magnetics Segment Financial Results
| | For the three months ended March 31, | | 2025 vs. 2024 | | | | | | | | | | (in thousands, unaudited) | | 2025 | | | 2024 | | | Amount Change | | % Change | | | Revenue: | | | | | | | | | | | | | Magnetic precursor products | $ | 5,191 | | $ | — | | | $ | 5,191 | | N/M | | | | | | | | | | | | | | | Segment Adjusted EBITDA (1) | $ | 493 | | $ | (2,707 | ) | | $ | 3,200 | | N/M |
| N/M = Not meaningful. | | | | (1) | | See “Segment Information” below for further information. |
First Quarter 2025 Magnetics Segment Review
Revenues in the magnetics segment were $5.2 million in the quarter as the initial magnetic precursor product deliveries began in March. There were no corresponding sales in the prior year period. The initial sales also drove the year-over-year increase in the Magnetics Segment Adjusted EBITDA.
| | | | | | | | | | MP MATERIALS CORP. AND SUBSIDIARIES | | | | | | | | | CONDENSED CONSOLIDATED BALANCE SHEETS | | | | | | | | | | | | | | | | | | | March 31, 2025 | | December 31, 2024 | | | | | | (U.S dollars in thousands, except share and per share data, unaudited) | | | | | | | | | Assets | | | | | | | | | Current assets | | | | | | | | | Cash and cash equivalents | $ | 198,343 | | | $ | 282,442 | | | Short-term investments | | 560,814 | | | | 568,426 | | | Total cash, cash equivalents and short-term investments | | 759,157 | | | | 850,868 | | | Accounts receivable | | 69,719 | | | | 18,874 | | | Inventories | | 133,084 | | | | 107,905 | | | Income taxes receivable | | 23,805 | | | | 23,672 | | | Government grant receivable | | 19,205 | | | | 19,799 | | | Prepaid expenses and other current assets | | 17,903 | | | | 10,204 | | | Total current assets | | 1,022,873 | | | | 1,031,322 | | | Non-current assets | | | | | | | | | Property, plant and equipment, net | | 1,278,830 | | | | 1,251,496 | | | Operating lease right-of-use assets | | 9,629 | | | | 8,680 | | | Inventories | | 20,338 | | | | 19,031 | | | Intangible assets, net | | 7,071 | | | | 7,370 | | | Other non-current assets | | 29,383 | | | | 15,659 | | | Total non-current assets | | 1,345,251 | | | | 1,302,236 | | | Total assets | $ | 2,368,124 | | | $ | 2,333,558 | | | Liabilities and stockholders’ equity | | | | | | | | | Current liabilities | | | | | | | | | Accounts and construction payable | $ | 20,867 | | | $ | 23,562 | | | Accrued liabilities | | 69,141 | | | | 64,727 | | | Current portion of long-term debt | | 67,346 | | | | — | | | Deferred revenue | | 75,335 | | | | 56,880 | | | Other current liabilities | | 15,518 | | | | 18,850 | | | Total current liabilities | | 248,207 | | | | 164,019 | | | Non-current liabilities | | | | | | | | | Long-term debt, net of current portion | | 842,415 | | | | 908,729 | | | Deferred revenue | | 69,474 | | | | 43,120 | | | Operating lease liabilities | | 6,390 | | | | 5,798 | | | Deferred government grant | | 22,029 | | | | 20,087 | | | Deferred investment tax credit | | 25,178 | | | | 25,502 | | | Deferred income taxes | | 80,695 | | | | 85,309 | | | Other non-current liabilities | | 37,625 | | | | 26,114 | | | Total non-current liabilities | | 1,083,806 | | | | 1,114,659 | | | Total liabilities | | 1,332,013 | | | | 1,278,678 | | | Commitments and contingencies | | | | | | | | | Stockholders’ equity: | | | | | | | | | Preferred stock ($0.0001 par value, 50,000,000 shares authorized, none issued and outstanding in either period) | | — | | | | — | | | Common stock ($0.0001 par value, 450,000,000 shares authorized, 178,695,379 and 178,445,570 shares issued, and 163,445,597 and 163,195,788 shares outstanding, as of March 31, 2025, and December 31, 2024, respectively) | | 18 | | | | 18 | | | Additional paid-in capital | | 965,487 | | | | 961,434 | | | Retained earnings | | 297,654 | | | | 320,302 | | | Accumulated other comprehensive income (loss) | | (1 | ) | | | 173 | | | Treasury stock, at cost, 15,249,782 shares for both periods | | (227,047 | ) | | | (227,047 | ) | | Total stockholders’ equity | | 1,036,111 | | | | 1,054,880 | | | Total liabilities and stockholders’ equity | $ | 2,368,124 | | | $ | 2,333,558 | | | | | | | | | | |
| MP MATERIALS CORP. AND SUBSIDIARIES | | | | | | | | | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | | | | | | | | | | | | | | | | | | | For the three months ended March 31, | | | | | | | | (U.S. dollars in thousands, except share and per share data, unaudited) | | 2025 | | | | 2024 | | | Revenue | $ | 60,810 | | | $ | 48,684 | | | Operating costs and expenses: | | | | | | | | | Cost of sales (excluding depreciation, depletion and amortization) | | 48,831 | | | | 35,594 | | | Selling, general and administrative | | 24,166 | | | | 21,267 | | | Depreciation, depletion and amortization | | 21,384 | | | | 18,385 | | | Start-up costs | | 976 | | | | 1,287 | | | Advanced projects and development | | 474 | | | | 4,206 | | | Other operating costs and expenses (income), net | | (243 | ) | | | 377 | | | Total operating costs and expenses | | 95,588 | | | | 81,116 | | | Operating loss | | (34,778 | ) | | | (32,432 | ) | | Interest expense, net | | (7,615 | ) | | | (2,857 | ) | | Gain on early extinguishment of debt | | — | | | | 46,265 | | | Other income, net | | 15,218 | | | | 12,657 | | | Income (loss) before income taxes | | (27,175 | ) | | | 23,633 | | | Income tax benefit (expense) | | 4,527 | | | | (7,144 | ) | | Net income (loss) | $ | (22,648 | ) | | $ | 16,489 | | | | | | | | | | | | Earnings (loss) per share: | | | | | | | | | Basic | $ | (0.14 | ) | | $ | 0.09 | | | Diluted | $ | (0.14 | ) | | $ | (0.08 | ) | | | | | | | | | | | Weighted-average shares outstanding: | | | | | | | | | Basic | | 163,764,345 | | | | 174,556,850 | | | Diluted | | 163,764,345 | | | | 186,791,826 | | | | | | | | | | |
| MP MATERIALS CORP. AND SUBSIDIARIES | | | | | | | | | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | | | | | | | | For the three months ended March 31, | | | | | | | | (U.S. dollars in thousands, unaudited) | | 2025 | | | | 2024 | | | Operating activities: | | | | | | | | | Net income (loss) | $ | (22,648 | ) | | $ | 16,489 | | | Adjustments to reconcile net income (loss) to net cash used in operating activities: | | | | | | | | | Depreciation, depletion and amortization | | 21,384 | | | | 18,385 | | | Accretion of discount on short-term investments | | (5,691 | ) | | | (8,493 | ) | | Gain on early extinguishment of debt | | — | | | | (46,265 | ) | | Stock-based compensation expense | | 7,353 | | | | 7,467 | | | Change in fair value of derivative instrument | | (6,997 | ) | | | — | | | Amortization of debt issuance costs | | 1,033 | | | | 913 | | | Lower of cost or net realizable value reserve | | 3,164 | | | | 5,991 | | | Deferred income taxes | | (4,558 | ) | | | 7,144 | | | Other | | 65 | | | | 276 | | | Decrease (increase) in operating assets: | | | | | | | | | Accounts receivable | | (50,845 | ) | | | (11,571 | ) | | Inventories | | (31,103 | ) | | | (20,943 | ) | | Government grant receivable | | (6,364 | ) | | | (1,617 | ) | | Prepaid expenses, other current and non-current assets | | (7,100 | ) | | | (3,243 | ) | | Increase (decrease) in operating liabilities: | | | | | | | | | Accounts payable and accrued liabilities | | (1,786 | ) | | | (7,633 | ) | | Deferred revenue | | 44,809 | | | | — | | | Deferred government grant | | 2,723 | | | | 1,489 | | | Other current and non-current liabilities | | (6,637 | ) | | | 485 | | | Net cash used in operating activities | | (63,198 | ) | | | (41,126 | ) | | Investing activities: | | | | | | | | | Additions to property, plant and equipment | | (30,467 | ) | | | (51,838 | ) | | Purchases of short-term investments | | (364,680 | ) | | | (390,608 | ) | | Proceeds from sales of short-term investments | | 23,164 | | | | 22,954 | | | Proceeds from maturities of short-term investments | | 354,613 | | | | 460,110 | | | Proceeds from sale of property, plant and equipment | | 1,666 | | | | — | | | Proceeds from government awards used for construction | | — | | | | 96 | | | Net cash provided by (used in) investing activities | | (15,704 | ) | | | 40,714 | | | Financing activities: | | | | | | | | | Proceeds from issuance of long-term debt | | — | | | | 747,500 | | | Payment of debt issuance costs | | — | | | | (15,125 | ) | | Payments to retire long-term debt | | — | | | | (428,599 | ) | | Purchase of capped call options | | — | | | | (65,332 | ) | | Repurchases of common stock | | — | | | | (200,764 | ) | | Principal payments on debt obligations and finance leases | | (1,361 | ) | | | (811 | ) | | Tax withholding on stock-based awards | | (3,642 | ) | | | (3,949 | ) | | Net cash provided by (used in) financing activities | | (5,003 | ) | | | 32,920 | | | Net change in cash, cash equivalents and restricted cash | | (83,905 | ) | | | 32,508 | | | Cash, cash equivalents and restricted cash beginning balance | | 283,603 | | | | 264,988 | | | Cash, cash equivalents and restricted cash ending balance | $ | 199,698 | | | $ | 297,496 | | | | | | | | | | | | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | Cash and cash equivalents | $ | 198,343 | | | $ | 296,468 | | | Restricted cash, current | | 815 | | | | 692 | | | Restricted cash, non-current | | 540 | | | | 336 | | | Total cash, cash equivalents and restricted cash | $ | 199,698 | | | $ | 297,496 | | | | | | | | | | |