Yukon Metals Corp press release
MP Materials Reports Second Quarter 2025 Results
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Revenue increased 84% year over year to $57.4 million
Record NdPr production of 597 metric tons, a 119% increase year over year
Second best quarterly REO production of 13,145 metric tons, a 45% increase year over year
NdPr sales volumes more than tripled year over year to 443 metric tons
Magnetics Segment continued to scale, generating $19.9 million in revenue and $8.1 million in Adjusted EBITDA
In July, announced transformational partnerships with the U.S. Department of Defense and Apple
MP Materials Corp. (NYSE: MP) (“MP Materials” or the “Company”), today announced financial and operational results for the three months ended June 30, 2025.
“In the second quarter, our Materials segment achieved record NdPr oxide production and delivered the second-highest REO output in MP’s history. At the same time, our Magnetics segment advanced commissioning and began profitably ramping metal production,” said James Litinsky, Founder, Chairman & CEO of MP Materials. “We also recently announced transformational partnerships with the Department of Defense and Apple—cornerstone agreements that we believe will drive significant long-term profitability and position MP as a platform for sustained growth in the emerging era of physical AI.”
| Second Quarter 2025 Consolidated Financial Highlights | | | | | | | | | | | | | | | | For the three months ended June 30, | | 2025 vs. 2024 | | | | | | | | | | | | (in thousands, except per share data, unaudited) | | 2025 | | | | 2024 | | | Amount Change | | % Change | | | | Financial Measures: | | | | | | | | | | | | | | | Total revenue | $ | 57,393 | | | $ | 31,258 | | | $ | 26,135 | | 84 | % | | Net loss | $ | (30,872 | ) | | $ | (34,055 | ) | | $ | 3,183 | | 9 | % | | Adjusted EBITDA (1) | $ | (12,535 | ) | | $ | (27,060 | ) | | $ | 14,525 | | 54 | % | | Adjusted Net Loss (1) | $ | (21,374 | ) | | $ | (28,036 | ) | | $ | 6,662 | | 24 | % | | Diluted EPS | $ | (0.19 | ) | | $ | (0.21 | ) | | $ | 0.02 | | 10 | % | | Adjusted Diluted EPS (1) | $ | (0.13 | ) | | $ | (0.17 | ) | | $ | 0.04 | | 24 | % |
| (1) | | See “Use of Non-GAAP Financial Measures” below for the definitions. See tables below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures. |
Second Quarter 2025 Consolidated Review
Total revenue increased 84% year over year to $57.4 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, the three months ended June 30, 2025, included sales of magnetic precursor products with no comparable revenue in the prior year period. The increases were partially offset by the decrease in rare earth concentrate revenues, impacted by the strategic decision to cease shipments of rare earth concentrate to China as well as by the ramp-up in midstream operations, as a significantly higher portion of rare earth oxide (“REO”) produced is refined and sold as NdPr oxide and metal.
Adjusted EBITDA improved by $14.5 million year over year to $(12.5) million, driven mainly by the initial sales of magnetic precursor products, which drove a $10.9 million year over year improvement in the Magnetics Segment Adjusted EBITDA. Materials Segment Adjusted EBITDA improved $4.9 million year over year mainly due to the increase in revenue discussed above. Also impacting the comparison were higher selling, general, and administrative expenses in the current period due to higher legal costs and increased employee headcount to support our downstream expansion.
Adjusted Net Loss improved by $6.7 million year over year to $(21.4) million, driven mainly by the higher Adjusted EBITDA discussed above. The improvement in Adjusted Net Loss was partially offset by higher depreciation expense resulting from an increase in capital assets placed into service over the last year, a lower income tax benefit, as well as slightly lower interest income.
Net loss improved by $3.2 million year over year to $(30.9) million, primarily due to the factors driving the improved Adjusted Net Loss discussed above, offset partially by a $2.5 million non-cash loss 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”) increased by $0.02 year over year to a diluted loss per share of $0.19, in line with the change in Net loss discussed above. Adjusted Diluted EPS increased by $0.04 to $(0.13) in line with the improved Adjusted Net Loss discussed above.
| Second Quarter 2025 Segment Financial Highlights | | | | | | | | | | | | | | | | | For the three months ended June 30, | | 2025 vs. 2024 | | | | | | | | | | | | | (in thousands, unaudited) | | 2025 | | | | 2024 | | | Amount Change | | % Change | | | | | Segment Financials: | | | | | | | | | | | | | | | | Revenue | | | | | | | | | | | | | | | | Materials Segment | $ | 37,532 | | | $ | 31,258 | | | $ | 6,274 | | | 20 | % | | Magnetics Segment | | 19,861 | | | | — | | | | 19,861 | | | N/M | | | Total revenue | $ | 57,393 | | | $ | 31,258 | | | $ | 26,135 | | | 84 | % | | | | | | | | | | | | | | | | | | Segment Adjusted EBITDA (1) | | | | | | | | | | | | | | | | Materials Segment | $ | (12,678 | ) | | $ | (17,602 | ) | | $ | 4,924 | | | 28 | % | | Magnetics Segment | | 8,089 | | | | (2,824 | ) | | | 10,913 | | | N/M | | | Total Segment Adjusted EBITDA | $ | (4,589 | ) | | $ | (20,426 | ) | | $ | 15,837 | | | 78 | % | | Corporate and other (2) | | (7,946 | ) | | | (6,634 | ) | | | (1,312 | ) | | (20 | )% | | Adjusted EBITDA (3) | $ | (12,535 | ) | | $ | (27,060 | ) | | $ | 14,525 | | | 54 | % |
| 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. |
| Second Quarter 2025 Materials Segment Financial and Operational Results | | | | | | | | | | | | | | | | | For the three months ended June 30, | | 2025 vs. 2024 | | | | | | | | | | | | | (unaudited) | | 2025 | | | | 2024 | | | Amount Change | | % Change | | | | | Revenue: | (in thousands) | | | | | | | | | | | | | | | Rare earth concentrate | $ | 11,877 | | | $ | 24,426 | | | $ | (12,549 | ) | | (51 | )% | | NdPr oxide and metal | | 25,045 | | | | 6,531 | | | | 18,514 | | | 283 | % | | Other revenue | | 610 | | | | 301 | | | | 309 | | | 103 | % | | Total Materials Segment revenue | $ | 37,532 | | | $ | 31,258 | | | $ | 6,274 | | | 20 | % | | | | | | | | | | | | | | | | | | Segment Adjusted EBITDA (1) | $ | (12,678 | ) | | $ | (17,602 | ) | | $ | 4,924 | | | 28 | % | | | | | | | | | | | | | | | | | | Key Performance Indicators (2) : | (in whole units or dollars) | | | | | | | | | | | | | | | Rare earth concentrate | | | | | | | | | | | | | | | | REO Production Volume (MTs) | | 13,145 | | | | 9,084 | | | | 4,061 | | | 45 | % | | REO Sales Volume (MTs) | | 2,658 | | | | 5,839 | | | | (3,181 | ) | | (54 | )% | | Realized Price per REO MT | $ | 4,468 | | | $ | 4,183 | | | $ | 285 | | | 7 | % | | Separated NdPr products | | | | | | | | | | | | | | | | NdPr Production Volume (MTs) | | 597 | | | | 272 | | | | 325 | | | 119 | % | | NdPr Sales Volume (MTs) | | 443 | | | | 136 | | | | 307 | | | 226 | % | | NdPr Realized Price per KG | $ | 57 | | | $ | 48 | | | $ | 9 | | | 19 | % |
| (1) | | See “Segment Information” below for further information. | | (2) | | See “Key Performance Indicators” below for definitions and further information. |
Second Quarter 2025 Materials Segment Review
Materials Segment revenue increased 20% to $37.5 million year over year, driven by an $18.5 million increase in NdPr oxide and metal sales due to a 226% increase in NdPr Sales Volumes. The increase in NdPr Sales Volumes was driven by the continued transition to production of midstream products, primarily NdPr oxide. NdPr oxide and metal revenue also benefited from a 19% increase in year over year realized pricing due mainly to improved market pricing. The increase was partially offset by a $12.5 million decrease in rare earth concentrate revenue due to a 54% decline in REO Sales Volumes impacted by the strategic decision to cease shipments of rare earth concentrate to China as well as by the ramp-up in midstream operations, where a significantly higher portion of REO produced was refined and sold as NdPr oxide and metal during the current year period. REO Production Volumes increased 45% year over year to 13,145 metric tons primarily due to higher recoveries from the continued implementation of Upstream 60K optimizations, as well as the impact of unplanned downtime in the prior-year period.
Materials Segment Adjusted EBITDA improved by $4.9 million year over year to $(12.7) million, primarily due to the increase in revenue discussed above. The Materials Segment cost of sales (“Segment COS”) remained relatively flat year over year as a higher mix of NdPr oxide and metal sales relative to REO sales in the period were partially offset by lower per-unit costs of NdPr oxide and metal production. Per-unit production costs of separated products are necessarily higher than those of rare earth concentrate due to the additional processing required. Separated product production costs on a per-unit basis are currently elevated given the temporary underutilization of the refining facilities as we ramp to normalized production levels. Segment COS for the three months ended June 30, 2025, also benefited from (i) lower reserves on certain of our work in process and finished goods inventories, which decreased by $8.3 million when compared to the prior year; (ii) $1.9 million of higher 45X Credit impacts in the current year; and (iii) $1.9 million in lower repairs and maintenance expenses, attributable to thickener equipment repairs in the second quarter of 2024.
| Second Quarter 2025 Magnetics Segment Financial Results | | | | | | | | | | | | | | For the three months ended June 30, | | 2025 vs. 2024 | | | | | | | | | | (in thousands, unaudited) | | 2025 | | | 2024 | | | Amount Change | | % Change | | | Revenue: | | | | | | | | | | | | | Magnetic precursor products | $ | 19,861 | | $ | — | | | $ | 19,861 | | N/M | | | | | | | | | | | | | | | Segment Adjusted EBITDA (1) | $ | 8,089 | | $ | (2,824 | ) | | $ | 10,913 | | N/M |
| N/M = Not meaningful. | | | | (1) | | See “Segment Information” below for further information. |
Second Quarter 2025 Magnetics Segment Review
Revenues in the Magnetics segment were $19.9 million for the three months ended June 30, 2025, as the initial magnetic precursor product deliveries began during the first quarter of 2025. There were no corresponding sales in the prior year period. The sales also drove the year-over-year increase in the Magnetics Segment Adjusted EBITDA.
| MP MATERIALS CORP. AND SUBSIDIARIES | | | | | | | | | CONDENSED CONSOLIDATED BALANCE SHEETS | | | | | | | | | | June 30, 2025 | | December 31, 2024 | | | | | | (U.S dollars in thousands, except share and per share data, unaudited) | | | | | | | | | Assets | | | | | | | | | Current assets | | | | | | | | | Cash and cash equivalents | $ | 261,535 | | | $ | 282,442 | | | Short-term investments | | 492,122 | | | | 568,426 | | | Total cash, cash equivalents and short-term investments | | 753,657 | | | | 850,868 | | | Accounts receivable | | 21,821 | | | | 18,874 | | | Inventories | | 128,048 | | | | 107,905 | | | Income taxes receivable | | 23,805 | | | | 23,672 | | | Government grant receivable | | 19,273 | | | | 19,799 | | | Prepaid expenses and other current assets | | 13,791 | | | | 10,204 | | | Total current assets | | 960,395 | | | | 1,031,322 | | | Non-current assets | | | | | | | | | Property, plant and equipment, net | | 1,290,090 | | | | 1,251,496 | | | Operating lease right-of-use assets | | 9,139 | | | | 8,680 | | | Inventories | | 45,224 | | | | 19,031 | | | Intangible assets, net | | 6,772 | | | | 7,370 | | | Other non-current assets | | 24,567 | | | | 15,659 | | | Total non-current assets | | 1,375,792 | | | | 1,302,236 | | | Total assets | $ | 2,336,187 | | | $ | 2,333,558 | | | Liabilities and stockholders’ equity | | | | | | | | | Current liabilities | | | | | | | | | Accounts and construction payable | $ | 21,726 | | | $ | 23,562 | | | Accrued liabilities | | 74,447 | | | | 64,727 | | | Current portion of long-term debt | | 67,434 | | | | — | | | Deferred revenue | | 79,894 | | | | 56,880 | | | Other current liabilities | | 23,366 | | | | 18,850 | | | Total current liabilities | | 266,867 | | | | 164,019 | | | Non-current liabilities | | | | | | | | | Long-term debt, net of current portion | | 843,369 | | | | 908,729 | | | Deferred revenue | | 45,054 | | | | 43,120 | | | Operating lease liabilities | | 6,016 | | | | 5,798 | | | Deferred government grant | | 22,029 | | | | 20,087 | | | Deferred investment tax credit | | 26,428 | | | | 25,502 | | | Deferred income taxes | | 67,309 | | | | 85,309 | | | Other non-current liabilities | | 48,565 | | | | 26,114 | | | Total non-current liabilities | | 1,058,770 | | | | 1,114,659 | | | Total liabilities | | 1,325,637 | | | | 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, 178,715,488 and 178,445,570 shares issued, and 163,465,706 and 163,195,788 shares outstanding, as of June 30, 2025, and December 31, 2024, respectively) | | 18 | | | | 18 | | | Additional paid-in capital | | 970,823 | | | | 961,434 | | | Retained earnings | | 266,782 | | | | 320,302 | | | Accumulated other comprehensive income (loss) | | (26 | ) | | | 173 | | | Treasury stock, at cost, 15,249,782 shares for both periods | | (227,047 | ) | | | (227,047 | ) | | Total stockholders’ equity | | 1,010,550 | | | | 1,054,880 | | | Total liabilities and stockholders’ equity | $ | 2,336,187 | | | $ | 2,333,558 | |
| MP MATERIALS CORP. AND SUBSIDIARIES | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (U.S. dollars in thousands, except share and per share data, unaudited) | For the three months ended June 30, | | For the six months ended June 30, | | | | | | | | | | | | | | | 2025 | | | | 2024 | | | | 2025 | | | | 2024 | | | | Revenue | $ | 57,393 | | | $ | 31,258 | | | $ | 118,203 | | | $ | 79,942 | | | | | | | | | | | | | | | | | | | | Operating costs and expenses: | | | | | | | | | | | | | | | | | Cost of sales (excluding depreciation, depletion and amortization) | | 50,431 | | | | 41,463 | | | | 99,262 | | | | 77,057 | | | Selling, general and administrative | | 27,429 | | | | 21,434 | | | | 51,595 | | | | 42,701 | | | Depreciation, depletion and amortization | | 20,777 | | | | 18,210 | | | | 42,161 | | | | 36,595 | | | Start-up costs | | 761 | | | | 1,373 | | | | 1,737 | | | | 2,660 | | | Advanced projects and development | | 2,496 | | | | 1,886 | | | | 2,970 | | | | 6,092 | | | Other operating costs and expenses (income), net | | (619 | ) | | | 384 | | | | (862 | ) | | | 761 | | | Total operating costs and expenses | | 101,275 | | | | 84,750 | | | | 196,863 | | | | 165,866 | | | Operating loss | | (43,882 | ) | | | (53,492 | ) | | | (78,660 | ) | | | (85,924 | ) | | Interest expense, net | | (5,414 | ) | | | (6,745 | ) | | | (13,029 | ) | | | (9,602 | ) | | Gain on early extinguishment of debt | | — | | | | — | | | | — | | | | 46,265 | | | Other income, net | | 6,572 | | | | 12,084 | | | | 21,790 | | | | 24,741 | | | Loss before income taxes | | (42,724 | ) | | | (48,153 | ) | | | (69,899 | ) | | | (24,520 | ) | | Income tax benefit | | 11,852 | | | | 14,098 | | | | 16,379 | | | | 6,954 | | | Net loss | $ | (30,872 | ) | | $ | (34,055 | ) | | $ | (53,520 | ) | | $ | (17,566 | ) | | | | | | | | | | | | | | | | | | | Loss per share: | | | | | | | | | | | | | | | | | Basic | $ | (0.19 | ) | | $ | (0.21 | ) | | $ | (0.33 | ) | | $ | (0.10 | ) | | Diluted | $ | (0.19 | ) | | $ | (0.21 | ) | | $ | (0.33 | ) | | $ | (0.28 | ) | | | | | | | | | | | | | | | | | | | Weighted-average shares outstanding: | | | | | | | | | | | | | | | | | Basic | | 163,834,693 | | | | 165,344,511 | | | | 163,799,713 | | | | 169,950,658 | | | Diluted | | 163,834,693 | | | | 165,344,511 | | | | 163,799,713 | | | | 176,068,146 | |
| MP MATERIALS CORP. AND SUBSIDIARIES | | | | | | | | | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | For the six months ended June 30, | | | | | | | | (U.S. dollars in thousands, unaudited) | | 2025 | | | | 2024 | | | Operating activities: | | | | | | | | | Net loss | $ | (53,520 | ) | | $ | (17,566 | ) | | Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | Depreciation, depletion and amortization | | 42,161 | | | | 36,595 | | | Accretion of discount on short-term investments | | (11,462 | ) | | | (16,317 | ) | | Gain on early extinguishment of debt | | — | | | | (46,265 | ) | | Stock-based compensation expense | | 12,905 | | | | 13,170 | | | Amortization of debt issuance costs | | 2,074 | | | | 1,891 | | | Lower of cost or net realizable value reserve | | 6,736 | | | | 17,753 | | | Deferred income taxes | | (17,936 | ) | | | (6,954 | ) | | Other | | (5,919 | ) | | | 928 | | | Decrease (increase) in operating assets: | | | | | | | | | Accounts receivable | | (2,946 | ) | | | 1,570 | | | Inventories | | (52,441 | ) | | | (41,541 | ) | | Government grant receivable | | (10,883 | ) | | | (4,837 | ) | | Prepaid expenses, other current and non-current assets | | (4,289 | ) | | | (3,815 | ) | | Increase (decrease) in operating liabilities: | | | | | | | | | Accounts payable and accrued liabilities | | 1,201 | | | | (6,862 | ) | | Deferred revenue | | 24,948 | | | | 50,000 | | | Deferred government grant | | 3,313 | | | | 2,433 | | | Other current and non-current liabilities | | (795 | ) | | | 9,533 | | | Net cash used in operating activities | | (66,853 | ) | | | (10,284 | ) | | Investing activities: | | | | | | | | | Additions to property, plant and equipment | | (59,473 | ) | | | (98,326 | ) | | Purchases of short-term investments | | (683,815 | ) | | | (833,705 | ) | | Proceeds from sales of short-term investments | | 80,387 | | | | 90,695 | | | Proceeds from maturities of short-term investments | | 690,942 | | | | 852,210 | | | Proceeds from return of investment in equity method investee | | 9,673 | | | | — | | | Proceeds from sale of property, plant and equipment | | 4,063 | | | | — | | | Proceeds from government awards used for construction | | 12,200 | | | | 96 | | | Net cash provided by investing activities | | 53,977 | | | | 10,970 | | | Financing activities: | | | | | | | | | Proceeds from issuance of long-term debt | | — | | | | 747,500 | | | Payment of debt issuance costs | | — | | | | (16,118 | ) | | 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 | | (3,857 | ) | | | (1,197 | ) | | Tax withholding on stock-based awards | | (3,877 | ) | | | (4,124 | ) | | Net cash provided by (used in) financing activities | | (7,734 | ) | | | 31,366 | | | Net change in cash, cash equivalents and restricted cash | | (20,610 | ) | | | 32,052 | | | Cash, cash equivalents and restricted cash beginning balance | | 283,603 | | | | 264,988 | | | Cash, cash equivalents and restricted cash ending balance | $ | 262,993 | | | $ | 297,040 | | | | | | | | | | | | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | Cash and cash equivalents | $ | 261,535 | | | $ | 295,604 | | | Restricted cash, current | | 918 | | | | 1,087 | | | Restricted cash, non-current | | 540 | | | | 349 | | | Total cash, cash equivalents and restricted cash | $ | 262,993 | | | $ | 297,040 | |