Earnings call transcript Q2 2023

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Operator

Good afternoon, ladies and gentlemen. Thank you for joining today's MP Materials Second Quarter 2023 Earnings Call and Webcast. My name is Tia, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions-and-answers at the end. [Operator Instructions]

to Investor conference Relations, like host, to now of Head Martin would pass over the your I Sheehan. Please proceed.

Martin Sheehan

Thank XXXX With afternoon, Materials Materials Corbett, Founder you, everyone. Welcome Michael Executive Founder, and Ryan and Litinsky, to good Officer. operator Chairman, Rosenthal, the are and Chief Jim second earnings today me quarter call. conference from MP Chief Officer; Officer; and Chief MP Financial Operating

subject and to contain will assumptions forward-looking relating expectations discussion that that today’s SEC events are differ materially Factors company’s reminder, a caveats. are from As the these earnings presentation, filings. in actual various release today’s to to and our statements cause statements future may in and included results

presentation. can the financial appendix EBITDA In reference comparable EBITDA. our GAAP found Reconciliations be to directly Any in addition, release today have in discussion to today’s some we most and measures included today’s non-GAAP in to earnings financial presentation. the adjusted slide this means measures

release Finally, available and on the slide earnings website. our are presentation

that, over will Jim. Jim? With the to turn call I

Jim Litinsky

Martin, for today. joining thank all Thanks, us you and

a and overview Michael, will Let Ryan you then will more commentary review Q&A. then X closing highlights. before begin, the second quarter brief discuss by give of and recent To today's will through progress. I run I KPIs, me followed will financials call. the Stage who provide some

X X on jump to of right Slide begin and and important for Stage So exciting slide let's under the middle news. the

advance the last team have X, over on done months job earth Mountain to an Stage We at Pass. Michael of production have commissioning. and the officially started rare separated particularly several incredible

as work operate the have to ramp still production reliably to working separation do expected. to but each Let me get be very we and are volumes, a up processes and circuit chemistry lot clear, of

to shipping customers quarter. oxide separated to NdPr We this expect begin

everyone milestone we want refined worth to earth production work our reiterate must a So caveat relentlessly our is rare of at shareholders, America. all with still us towards achieving well that the MP, that in as accelerating critical for mission. I as

Moving we X back planned for included the left in slide, Stage which a record a second quarter, quarter, the production of maintenance to the shutdown. achieved

this fact, comparisons, not with only volume plan provide a and quarters shutdown. one will being the we greater two quarterly on highest where a ever our production ones moment. Ryan In despite have strong performance into in this This third pricing difficult was did more detail week financial translated

and we Stage Stage team's all very to quarter X especially when site the related the X impressive, those Nonetheless, commissioning execution was consider achievements. on our this activity

to X Lastly, magnetics functions. business our Stage continues downstream advance across many

We are Worth installing of the goal Other our the making now Fort metal to in during facility. first some the the is in transit, equipment equipment year. alloy installation key remainder with and begin of

Western going epicenter area and to we is alloy, Worth a the Fort development in the of product are Along be magnet manufacturing, with magnetics of world. state-of-the-art, the scale piloting the and metal, R&D, facility. at establishing the

team. in Some make magnetic hires installed, we process and being equipment is continue across to already of this important the the of

company owner and we Vegas, the and just add maniacally Yet we our XXX as on expertise remain surpassed employee overall depth focused Worth Las culture. Mountain MP, fact, in the preserving In Fort Dallas, sites our Pass, across mark. operator

it With Ryan? that, turn Ryan. let to me over

Ryan Corbett

Jim. Thanks,

X. Turning Slide to

in in produce production production compared X Modest last Stage combined XX,XXX feed in of X% mentioned, volumes drive increase to to quarter. grade and productivity, Jim flotation hour The tons we progress efficiency improving demonstrating which grade the our improvements the in impressive of we continued improved combined second the in at rate rate the year. uptime a highest concentrate As per uptime REO rates, or in tons steady and REO produce in with fee feed history, to in recoveries of plant measure process. as strong

sales quarter. Stage sold in the an in is volume, to XX,XXX reaching we as increasing higher despite production metric X the volumes, circuits them. tons through growth being Moving This various sent commission X% to amount led the of production

reminder, or of sale a production expect we we seen next likely circuits bit REO be tons downstream two about therefore through two-thirds into consumed. as And X absorbed and over metric two total The about the weeks permanently under quarters. will not consumed be a ramps. available for Stage As production the of of X,XXX last have to one-third June, that

the prices the NdPr XX% May a as pricing was than then, in of the to for to we we sequential the pricing mid-$XX the by would fallen concentrate. Since And of driven Realized the in spoke realized uptick thought last NdPr, are share had again has decline quarter. we the in low-teens the percentage of value part REOs in fell kilogram. as and such, better it in decline be a lion’s now, likely QX. represents year-over-year, quarter The of pricing which when into decline price low modest right see per slightly

see outside over with costs Stage gained as part positive we lastly, prepare it cost. materials to lesser year-over-year has and a right, been we operations. is climbed efficiencies on and plant X extent, far the growth from supplies experience, last power plant headcount the in And our staff operated that and third-party own commission in And to and as have bugs. been critical our where real growth year, (ph) and we has continue combined training driven MP One XX% slight area production in for vendor our to fewer reduce able a heat costs full

our of will X other operating we targeted Stage come these and as attain equipment. of expect reliability from time over the parts successes process with We kinds

rare year and earth production, products we some on migrate evolve reminder, to focus as as the back a will As sales. sunset X to preparing X metal we move our these half reporting transition of the to to of Stage Stage and KPIs our to separated begin

to X. Moving Slide

year's by of realized lower drove in by a the commodity the million just second On earth pricing drop the million. And of given last to EBITDA of the driven in discussed, adjusted rare XX% far small quarter. similar decline amount $XX.X revenue we a well left as in business, the our $XX fluoride slide, as million declined $XX revenue nature sales of

particularly the very ore third NdPr page tightly scaled highlights graphic that The considering our nature generate market adjusted our to combined a allowed robust pricing. managing EBITDA and on cost structure, class us cost recent low the world of with XX% margin, when facility, body

removing the of the $XX payment generate of flow significant amount tax quarter, cash that a point was growth million despite I continued would to with very Stage positive also our and X CapEx weak April. in in modest free out cash when quarter, that the in pricing a normalized

our some EPS line modest Moving which primarily declined adjusted to to below comments our driven the the items, adjusted lower quick quarter, of far in had slide, impacts $X.XX the the three right on EBITDA, by EPS. adjusted diluted the on but

With the recognized line balance environment, put generating income us, cash to treasury over rate for in on interest current of income term in $XX we short securities, our the million work continue primarily interest income to statement. other our quarter large a

to over putting see the we over of with Second, starting year, $XXX service are would as we last us up expense assets expect. tick our into quarterly depreciation million

service. some XX% in as growth related million we CapEx, QX about we we having into our million to assets putting June. of X in in such, spent XXXX of the $XXX topic we are Stage while with a expect through item sequential depletion, QX roughly line expect And increase some start also of in would on amortization $XXX continue additional spend As the depreciation, about and

tax tax increased in an the income And whereas the lower income, which expense on caused expectation to additional due expect information mid-XXs. lastly, full rate on rate provision, upped tax the how on down our for rate, have IRA P&L, effective QX's full year-over-year impact bills quarter year with for slightly, outsized purposes our GAAP research we was and total the the implement XXx updated to we pre-tax year to

the may much not lower be But longer benefits income. QX statement updated given to expect forecast which To income in a perspective, to catch over outsized on a spread benefit year half. the looked up cash The pretax a be sequential GAAP the those first view updated full the tax we for period. created which have be from the meaningful. company, our we to clear,

Looking our whole effective half, first XX%. at tax the rate was roughly

everyone product turning I remind would shipping Before do the actual that also we on to when oxide, where to is cycle be longer going it is delivered. NdPr begin Michael, sales depending the

metal NdPr will end oxide our example, to before converted Asia, tollers be to much our being For in by delivered customers. Southeast production initial of of

facility, Shipping not times. build to times Southeast as three production at delivery weeks, Asia take to alone mention the inventory needed likely and (ph) will as well to tollers four

this or for likely oxide shipments in NdPr quarter. the revenue began expect that such, As recognized predominantly we starting be QX will

that, to turn Michael. over Michael? I'll With it

Michael Rosenthal

Ryan. Thanks,

Turning and X plant This the to quarter Mountain challenges downtime grade a the the and year-over-year, was for despite is intense Pass reallocation, operation. semiannual Slide accomplishment and resource modestly is product personnel cross solid X. by Concentrate attributable production considering busy partially increased very and less commissioning. shutdown. unplanned productive presented very Stage QX to sharing a the training,

extent also the in results operational execution. continued metallurgy optimization and to some fruits led The of efforts

breadth in output (ph) Stage reminder, discrete stable to a tied active our hope year-over-year X into But in in achieve operation. X QX. in periodic changes As accelerated throughout Commissioning term. certain the we activity and All now short pipeline. are generally circuits production projects and Stage the expect step quarter to

is very comments previous steps patience process a perseverance and lot My hard remain valid. frustrating that demands forward and setbacks. with Commissioning

Most cannot encouraged the their to employees safety resilience this progress. our quite during I'm complacent. importantly, major work, thank time. like I'd incidents overall, far with However, health we that stressful we so for any organization the hard and throughout have and become flexibility, avoided

and we the with to finishing. we of product individual began shipments more In NdPr along QX, oxide bulk and so cerium In production modest and QX, of products separations QX begin began lanthanum and and Plus. into SEG expect

of as the line complexity Stage equipment of basis. pleased are the that operating the with a success major this capable We X process. and design We given chemistry in major the process appear view

its the metallurgy, path Our days hydro rare to it finishing the stability. process confidence is along extends experiences but piece still early and challenges separation, own product circuits, equipment each of and across and

the off a past avoid spec that recommissioned spec to and this process, in it many advantage had months We separation material that upstream that and on prudently, was produced the quickly forfeiting survey. we in to in shape produce of inheriting our proceed on allows commissioning again. manner both an enormous advantage the separation us facility materials NdPr To has continue

operational in manifests uptime, and this regards on mineral the and consistent Stage how recovery, In as execution throughput. X Stage hinges the avoid trajectory, with to performance, X and safe

towards achieving certain working of higher With now our before face modest and maintaining temporary identifying targeted commissioning uptimes run while the we prior throughput, in rate. incrementally resolving to operations behind commercial us, throughput and are bottlenecks ramping circuits,

we anticipated in As areas we than plant, certain fully the so, we in operations. of are inconsistencies seeing performance more we do expect of regularly as the stabilized

variety inconsistencies wide we legacy new the secondary While come confident controls of that equipment chemistry and a handling. sources, can automation programming. including are process and from works, instruments material and

previously, by on As I've pleased term progress. and the long sacrifice Stage bottom team line our with our focused announcements. of But our remain very of and we not success, overall the for we that profitability overwhelmed will is X said are near sustainability term operation commitment mission the and

it over And I'll that, turn with to back Jim.

Jim Litinsky

Michael. Thanks,

We our to provide present of industry in an I the the environment, we vehicle conditions and e-mobility some NdPR continuation updated a was weak Before Q&A, approximate see and pricing low per discussed throughout on remained range This strong categories the electric future. demand perspective both mid-XXs experiencing general May. growth. trading in quarter, the wanted and in we to kilogram. mainly the go supply to

year XX% per We to quite time. for some at to expect least continue those grow to XX%

industrial other categories in drives, those turbines, hard significantly. PCs wind smartphones been applications throughout conditions hitting applications, have China for consumer Certainly, However, the are weak economic and electronics speakers disk and XXXX.

wipe is consumer electric X% applications all accelerating though, reminder, and means out our the a other in industry the hiccup then the effectively term, respectively. currently that split XX%, in This approximately and demand the XX% traditional spaces to EVs. between near in As transport those in industrial can a

both a begins growth ways. Of Then, the course, volatile to nature effect a compounding works short this the because phenomenon. within trump the industries of legacy of verticals is of years. course, influence couple term here

over On the the of amount mining has from between that China production was XXXX impacted supply the side, We the understand up we Myanmar entered first been of and border Myanmar reopening think of the pent year. that China. six a inventory by there fair months

rare abuses for anyone and course, toxic with mining encourage Myanmar. interferes Humanity. would Google human market more normal supply I interested and and obviously Security American importantly about forces of This in rights earth National to stories

supply that We this though expect relative is impact of transitory.

I net-net, times many before, anything as commodities can happen prices So the short in said have in term.

industry today's our soft that a intelligence view fortunately behind environment factors market on demand supply recent our for point, extraordinary. doing the note, disservice, least did side vantage the not pricing we clients on Therefore, that we and be we would With we word, the and our artificial from shareholders as mostly said, platform by On to seem both prospects explainable that the if mention value long the thought of identifiable at remain term the and be call. the us.

what is pictures using Image fantastical, left rare the little competition We MP opportunity This uniform is could the better move how to ahead somewhat now think go year have at best is I this what who internally future. ideas next see these powered but were here like look The which the for prompt let's on mining look we a that XXXX. So images Creator, created by new earth is could All DALL·E. Slide might Bing X. in MP's generate some the picture in like. to one had outline to AI do and exciting Michael's

are EV modes The of decades second is and where drones transport a is what vehicles, couple autonomous skyline now, the be supposed or dominant Tal to motion. electric of EVs, image from Chicago

I demand magnetics depiction is the all the be what today. agree reality reasonable what a multiples would future. is we think for of distant many in this a This is we so that see world might of not rare where a

where is get slide things interesting. third The

more as have earlier robot bipedal colloquial we to but humanoid have are this The heard you for language year apply At these. dogs the before recently seemed even might large otherwise Here, might already of both and totally first blush, fantasies, like we like are robots. companies robots. robots ChatGPT, objects these quadrupedal and launch these terms as have distant models seeing

where are these where check showing able of like companies number you robots, Just a can directed videos spoken are see language. various off to out that with YouTube be just

its Magnets, essentially A terms, and power that. rare small a large wheels. provide most motion. battery motors transforming and in small balance, earth enable actuators to cases, are into around a as weight rare matter, in EV energy use lots the has a strength rare Robots size, magnets structure. and When performance called dexterity. battery rollout an magnets, their then of joints what and a in motor actuators It earth win. this robot magnet movement on simple and think stored of primarily In has

For going actuators. many for the robotics likely a rare use certain permanent magnet only solution cases, earth is to be

guess. How all this frame? will what and out anyone's It's time play over

bipedal needing might strength and X X.X case a NdPr, and or robot or some major balance security though, kilograms kilograms. NdPr road. likely about than X.X X.X going cars kilograms unit Roughly and to produced year, in XX per more to a million This typical billion cars the are to there compares need of of For doing kind quadrupedal task use robots today's military a rough a per is one are on magnitude, between of for EV. order X.X even anywhere X about

Elon rare XX%-plus that Moreover, humans. will year, Must If share. many to have maintained would AI he in the for would that suggest that outnumber be correct, of predicted EV opportunity size of earths a robots this out Earlier it EVs. turns the multiples applications, be eventually MP

performance space the in to is chain direct will less other magnets to significant earth cost area and likely to Chinese at such likely American in with the of substitution Even also price. use percentage military is rare just with very it want understandable it needs, application. that add cases trade-offs of and the companies is an availability going around given provide there also the significantly supply feasible risks, is versus not robotics, and/or that as a an would are be better conversation where any there I performance that limitations

AI next So mega right of companies, but in a start that the we is next believe AI likely some few the point, the is infrastructure ours, going not excitement layer. playing via of price Robotics cap from where forward pulling other change I to of time top on to companies out we when, vertical, have to like are to years chip important is might now innovation handful into at tech too. and going taken into an do conclude, know be markets going AI decades. a public investors profound come disruptive the from but over layer is the platforms to

questions. open let's it that, Operator? up to With

Operator

Absolutely.

Instructions] of now D.A. Q&A begin Davidson. comes We from Matt first will session. with question The the line [Operator the Please Summerville proceed.

Matt Summerville

I evening. Good think. Thanks. Two questions,

the inbound Myanmar, excess think Jim, there's still comment at made point about has that's into to spigot, you that speak? First, this if the can whether still to will, I China do guess inventory like supply border, you you talk you feel around you some brought be so normalized literal. Well, over or

Jim Litinsky

the for Hey, Matt. Sure. Thanks question.

most from is inventory that But is think And a throughout of of believe came we this was of there's a huge supply. that so impact heard through year, would that part on shut there Myanmar what was been excess rush tough recent I a we -- of it's that. -- that supply have our and onetime sort of we to kind a crackdown it sort we that -- So was off built. what border lot say everything know. was for really And the of

as that, obviously, what of that belief from but I some in that's way guess this form, an But supply pretty we see is transitory. saying impact, long-winded exists our that's standpoint. And so a that's

Matt Summerville

was produced to kind that And those how material, out now it. you've a of what first as yields follow-up. of and comment you Got first finishing thought then on-spec compares and you're if yield operations just on wondering seeing I would you that the could where separation pass pass be?

Michael Rosenthal

Thanks long-term This expect production process the single many so started say the We concentrate guess had But on spec -- that we from is would product working that initial to up and we be for in what of follow leave to and how material our separation improvement. to was restarted at that you will manner expect process we're equipment our give be are hard how the with desired circuits significant Michael. question. guess are answer. yields don't I separation I I will our produce it it’s is at you lets to a optimistic quite finishing yields parts probably I'll up. there finished to spec the with processes pleased the similarly produced in on a and past work. quickly about there

Matt Summerville

leave we No, can Michael. it there. Thanks,

Jim Litinsky

Matt. Thanks,

Operator

you. from next Please proceed. of with question Alba Thank De the Stanley. Morgan The comes Carlos line

Carlos De Alba

Thank you. everyone. Yeah. afternoon, Good

to Stage on just discussion II. I Michael, So follow the up on wanted

and to like guess, a tuning so, and run say can the processes based those critical that? fair running just all have manner metrics had and you critical that And comfortable then the matter your steps, with all of a of sure and just it's are running you it making now fine and that and earlier already are is on improving, that, but all running, processes critical that I and the feel then circuits steps comments in all you all time been consistent

Michael Rosenthal

to performance they've materials and in proxy pretty is those fair a Certainly, them, run processing. so last the finishing can't think would We product is your otherwise, parts there, statement. correct. time, had we've what I physical I that's we of into but is and circuits circuits perform statement the put processes not design I think less to say, yeah, would that do less But comfortable just our chemistry a we that bit just more feel I the to to before the work little are that greater of there's confident, slightly working. yield. certainly, line to worked can kind bugs The with of to XXX% were are throughput, or that's out general we'll designed of material say -- reliability time, -- all get that's and able say basis

Carlos De Alba

a are plan would All encouraging. how That's -- right. characterize you II? of or defined quite Stage ahead, you think little the How on you Are would do for schedule? you had are behind against timetable bit that? measuring you time, the bit are then little feel And you that a or you you ramp-up that you

Michael Rosenthal

Yeah.

team and many that overall, unexpected sort challenges there'd places and it's working Certainly, the they're unexpected. bit all our the challenges the process of targets to lot we I would out. set be we proud against hard out that think said feel we that play be how a non-linear, thought and targets. really anticipated little of there knew will a we of easier, We and we've to that along be then challenges kind the are so benchmark in comfortable of those continue through see remain challenges

Carlos De Alba

No, EBITDA, XQ. think that could million expectations, we last was own also in for and in number. Ryan. both on calculate consensus Right. on comment and guys our I consensus quarter? fact around our -- you question our That below enough. $XX cash flow despite the something And fair calculate maybe both the bid right, I generation the the What

So there be great. some would color

Ryan Corbett

Sure. Hey, Carlos.

was likely year a fairly payment to significant consensus I what think cash prior million taxes. we probably versus missing achieved actually mid-$XX the tax on piece relating

a cash And P&L flow timing so payment. tax often that between obviously, as mismatch on you timing and cash know,

consensus beat the we those is majority have for probably of So you the that Obviously, delta. that, normalize numbers. on would if significantly vast

Carlos De Alba

All you. Thank right. Thanks.

Operator

next of proceed. the line with Please from Genuity. The George comes Canaccord Gianarikas you. question Thank

George Gianarikas

will you forward? just bit costs maybe ramp taking Hey. now update to start question. of little for as like going a to you your my what Good think production an kilogram afternoon, everyone and per the be and I production thanks NdPr

Ryan Corbett

take stick George can G. It's Ryan. with Well, We'll George. I that. Hey, Sure.

production cost is I'd early. it's what think obviously say on I

early than as I production, going rate production the clear been a at different that run very think come structure expect. is to you'd the cost we've of course,

very our obviously the curve in our demonstrated Stage position We proud are business. on that's I of cost well

cost separated maintaining in product position continue in to on lead have to curve that we that production. as We significant transition II confidence Stage the

a and color analysts has think investors where commodity for to public we then that a of gave be things are little also went roughly when kilogram originally We changed, reagents, on would have we There there's per the NdPr. but stayed namely lot cost since that a lot same.

something that And working I the than of so chemistry think this major laid Michael that out, economic of to be is the that we as fundamental way and the out you. all other commodities that framework with made inflation, driver will expect, the is

And change, is super encouraging. so to expect which that we don't

George Gianarikas

you. suspect price a view? do as you still is you Is a Inc. think Thank should maybe in a last kilogram Jim, your statement Great. that this And stabilization? that And unprofitable. quarter, that around some range, you made follow-up, that likely China that we $XX and at see

Martin Sheehan

Hey, George. May roughly in prices Thanks. today. Yes, are they around where were

still it’s mean you to leaves I said in this – statement very they there’s we various and that difficult stream, things the sort the various always of the quarter, as supply entities in I chain but the it’s something because last or in across if recall, to if read shift will. China. you do ability So is difficult tea And true. like always

the remarks, And it So that think in that as that encouraging. and -- we we is these somewhat see, I remains so everything are behind case -- those the us. items behind but prepared from said

And always when that likelihood other volatility reasons that, or for the stated so pricing here. shall we I but that more saw, gets if that reflective, there’s the there’s volatility see. that upside It all argue feels downside we right? stable I’ve would that not And way,

George Gianarikas

Thanks.

Martin Sheehan

Thanks.

question? Next

Operator

the of TD The next Deckelbaum proceed. Please Cowen. line David with from question comes

David Deckelbaum

guess, off you to some to time the But And withholding to a idea used Pass. still would inventory that year. curious just this am for on about in in of I amount Mountain ask Thanks Daft testing, one. II about, hold thought tempted Punk I'll as be getting in anticipating quarter for the I I the your all selling you be inventory work I'm a the had guys. significant that we I concentrate the second line confirm whether But to think of amount you time Jim, was -- at be happened or that back or should the still of you're greater half not. wanted Stage if that (ph) perhaps effectively

Ryan Corbett

into We of two roughly talked shy tons weeks’ just about that. call as let's had take the of that there's [indiscernible] it, It's recommissioned. X,XXX Hey, was gets inventory amount I remarks that. the reiteration of REO. expectation pretty of had a We, Yeah. David. or What in of laid I've consumed worth out a prepared absolutely June XX consumed one-third that about Ryan. significant can of that

say And that that as quickly we consumed to possible. will hopefully as ramp remainder get safe it's and the of so as

fill so the as in getting impact to would about the transition absolutely think even downstream in QX QX addition, of products. you sales as expect talked and model about little into line But remarks of circuits. inventory effectively I the rest I a the cycle that And consumed out as just we not to bit, separated

And into sell just -- separated There's the it REO be to turn also into ultimate there and metal the the then that that longer so to timing to converted circuits, customers. in or tollers on sell reiterate, to concentrate to with we start our downstream timing obviously, want and to that, product bring either I it consume as ramp impact into that, impact that continue the metal of important to production product but about expect, the as lapped separated is our few onetime that next have you'd a And channel, it think over fill will model. sort get the be cycle. we on production, as will this particularly will to sales as and certainly, we quarters impact, the and channel, of financial

David Deckelbaum

you the That's the NdPr can in of recognize cycle at of that's don't as revenue concentrate, which own just cargo is revenue we expected as the until that into the when it product my you're to a six for I up when delivery taking port, you is the edification. The so using metal ends still, until for guess recognize tolling soon Ryan. my technically arrangement? versus Chancas sell hands Hey, resource nice be getting segue customer? your that guess, a You sales follow-up, support months because I

Ryan Corbett

cycle Sure. think It's we prepared probably production is later NdPr that for question. production remarks months about than there. that and shipments had what keying separated our I'd sales in To the you're on, happening NdPr it's I right good answer this X oxide not Certainly, in current longer quarter. significantly talked are a say the is concentrate. clarify

that in QX, later be of revenue revenue. QX So likely much could

So of quite sure. QX beginning not end is of that than for months. Shorter six QX,

However, to our right be port the not longer is will title products our concentrate you what recognition Beach that cycle. that all the exactly out, that I separated at sales revenue to subject longer Long laid transfers and when now, we there. for sales though flag product than cycle That's deliver today. happens

be to the at port and remain be Long our products then distributed at to they of will oxide Asia we Part recognition the customers, There told instances revenue when of in our get primarily. as where Beach Southeast Japan as Port broader Asia products it’s is delivered will likely well. into into the to sell metal

a mix. really there be will so And

the for metal. our told keep oxide into mind, X What important I NdPr will be it’s next just in shipments likely quarter and or that is think early I mentioned, to

more and help sales to we And mix. things broaden your to start will early sort so carry as be models, there and and these sort cycle. of that, make that likely guys subject longer shipments base like to will the a think be customer product But forward you of about

David Deckelbaum

for the Thanks Yeah. clarification, Ryan.

Martin Sheehan

Yeah. Thanks.

question? Next

Operator

comes America. line with of question next The Lawson of from the Winder Bank proceed. Please

Lawson Winder

you, Nice Thank evening, quarter good operator and and great gentlemen. update.

Okay.

for we the tons I and X,XXX finer a up. rate point put year try Should run XXXX? modeling of a So wanted be a in to of still bit of full ramp on NdPr

Ryan Corbett

the frankly, goal. is, It's talk to remains But commentary seen a on that what happy to will run Michael's feel would year the reiteration our production areas I that It's all else the Ryan, start. certain expand about goal to can forecast, jump are and in. perfectly we're Michael what improve anything of and free at rate there then commissioning seeing but what of you to that we've I'm versus end throughput say to remains side, based much on continue that better sure nonlinear. It's I'm very tweak difficult on our that Mike to now.

point. predict got 'XX about think a output in volumes it's to what importantly, though, to do, you finish exactly production. for of this sales coming XXXX lot and work early mentioned, to kind and of the say ramp I be As will as at We've to our commissioning months I'd

that continue And forward. the get time calls and always we closer let you conditions sales our to will on say customer once to XXXX on period. We'll based market as we and update But going tuned. so do, production we on and progress, stay I'd our or on you we'll plan next demand formulate year

Lawson Winder

is really your You actually that based interesting point there, a on and on -- touched you market conditions. sales formulating

lines to Is your comments mean the I I take the recently. those one just is that willing material back? the about of kind it is not market? made that, along you market So how if MP does hold competitors think of mean some

Ryan Corbett

I a flexibility, Stage great we have great III. have products. a here have question. platform that It's what to the product, ability Stage And where product Stage we as built to about making is a lever right? II I We great on We're well. -- produce thing the We think progress as pull we've

as maximizing shareholder always we value. focused management on team so a are And

be that changing And mix time, a product means it. period so if the for of so

Jim Litinsky

pushback lack we any any seen demand. of not to clear, be or But have

of now lots lots of goal And and to of conversations and the about our think build downstream business. out have sales demand. We is the full thoughtfully channel our

Lawson Winder

on, about is if is 'XX. 'XX next we XXXX? of kind of terms or kind this? we circuit, rare right happen great Could then that That's finally, up how a just of should wanted something little back impact heavy like to in later that on separation of And Yeah. think going be like Or in ramp some on this for that's modeling color. understand maybe I NdPr? to it Okay. the And costs year, maybe the is that happening to earth going

Jim Litinsky

you're the those glad important just Department heavies. one the himself who for was background our us Well, I'm both maybe Yeah. President by little no, the don't way, guessing early Defense. Actually, of know. you since award in 'XX, there's overall peers, awards the But to our understanding us. were for a by announced and I'm Lynas of by about given you mentioned wondering that project, probably And raised just

about was exciting. And that. so that talked We

a good then But what field And expect was a spectrum that our how with a at attractive the an you and we DoD that of playing world of in the believe tell has a we competition And and fiduciaries, across would would is that think year level much imagine importance are last that to here. it's understand are you ago. competitive can days on economically that -- since of pretty I we that clear have with announcement we I there couple given peer early good we proceed projects changed certainly are and position. the believe we believe something

just I believe respect should our heavy. have if in what with direct being think we trying that are as sort everything get expect, we for support will heard mission at similar kind of is to I'm support that I discussions, of you can, you I equal said in to we and So is or that

So we very think positive that that thing recently saw. that's a I

lastly, it I I'm things expect and probably timing. far to track. what from would for think then business, again, will at the And deduce that that so saying about that, The some is project you that as asked just think be leave continue say we heaviest I And you as to to that I remains the can think on magnetics good heavy I is online on front. timing related, project that

Lawson Winder

quarter. Great guys. much, so Thanks

Jim Litinsky

Sure. Thanks.

Operator

comes you. proceed. Thank the with from of Alexander question Please line Jefferies. Laurence next The

Laurence Alexander

you've could other kind from just give given companies. for we're and of milestones just guess, of you about this the update a quick of I first afternoon. all, and Good the on kind CapEx inflationary next your hit hearing year, pressures year around thoughts

Ryan Corbett

But Stage also plan what on couple years have original and broader mentioned to of laid and that for a Ryan. was track. Laurence. we Yeah. intact. the our obviously, on ago remains give of out, III CapEx Hey, we CapEx out not Stage Sure. that in that further million guidance investment than across $XXX earlier year of laying call It's the remains in tend capital that. guidance $XXX We And sort million out the II

as essentially the from some for know, Certainly, us, is you Stage items except spend a II perspective. behind timing small

in and investing so we're And in there III course, out that are past, to addition, business. our Stage in other of projects continually

about done $XXX in million CapEx. we've so And year-to-date

is to $XXX that year. the of to continue for million rest We number model see fair the a

Laurence Alexander

respect using you the XX%, were Stage the that? kind at then of And be to II And rate, customers? then is partnership you prices earlier hold be other XX% you prices of the to the market made will you ASPs run will of that just about comparable closely the P&L, use guess we that to Stage through would XXXX get production you're to you or in or clarify on flowing the expect I assume flow that trying in rate two in With for -- you discount can the indexes to a we relationships the issue just with Q&A. points you talking we the lag of due through either given the X,XXX for II? terms run were kind sense there respect building Can public level to give because through to kind some who of for what, market whatever should that arrangements customers of into with you'll how are you translate be magnet realize P&L, able to

Ryan Corbett

both take of those. can I Yeah.

to and timing to specific any it were trying the As to think the comment XXXX. don't sales as make cycle, I relates we

not an actually I you to our that I'd is give since we what get to -- think by we're of remained a now we don't goal experienced consistently rate to that tried correlation guidance. that producing trying is production course, once have in the say of has also products. avoid we're production the on run of and flag, timing if end We've that from to But assumption same sales sales separated and that experience production the XXXX. we'll that and perspective overlap

in I would have modeling you XXX% think right if you're rate tons you of sold recognized And not certainly, track. NdPr on X,XXX so necessarily revenue XXXX. were run But the as starting XX/XX,

statement. point, a your think that's me fair I there. Remind second question

Laurence Alexander

ASP going time. to your pricing before closely should at how Just the

Ryan Corbett

we structures On based variety the Yeah. all that contract we that look, will have of pricing, on different at. indices are look a

potentially as market the is well I and then in price will thing that think relates structures of a difference it there variety to as different a be interesting versus price. timing contract realized

do we'll a as as be modeling but So you But closer say, give to easy there's me our point volume, to to get at I market for be think updated this closer. from to hey, get mattered. more updated we and we'll perspective you pinpoint there, significant to able take to keep sales going best continue not keep an we you to

Laurence Alexander

with if produce kind were to question market, product? understand that the you off to respect us just were earlier, it the help other it And of at rare economics? what's could you here, guess, the hold shelf just, to long off market to the How I decide one the life keep it then monetize and the but NdPr, of same you the still gains

Jim Litinsky

don't to be keeping well, have product this just Mike, clear, market the any of off at expectation time. we

So don't know, I is that...

Laurence Alexander

It's [indiscernible] yeah.

Michael Rosenthal

of I oxide alloy be in should believe guess or metal I theoretical have considerations life may for oxidizing. Yeah. terms, shelf there don't a

Laurence Alexander

Yeah.

Thanks. Okay.

Operator

Please (ph) Klein question La of (ph). next Sinha Capital The with you. comes from the Thank line proceed. Gabby

Unidentified Participant

question. my Hi. Yeah. for Thanks taking

Just quickly facility Texas. your on production in

is XXC and you your if So count on? get if confirm megacity you that under could can we ITCs covered

Ryan Corbett

right? I that little a think but XXC. the was about Is too We you, hearing Sure. had question

Unidentified Participant

Right.

covered If you is facility under XXC. investment the magnet

Ryan Corbett

Stage On Right. been some spoke have and relates this facility. that last, clarifications further updates point, and there how to and business III DFW our we regarding about it our XXC since

directly will called we at I that from think early too important DOE and benefit this out from definitely update this priority, the specific if to know a said, that treasury was facility. was it's as there magnetic program specifically

may expect that these can may But government always opportunities from any you as the or avail reasons, specific going we're not to we're and competitive that could process. of be sorts discuss will ourselves seeking federal a And monitoring competitive expect not you we arise. certainly in opportunities for of support

Martin Sheehan

you. Thank

I more. think one we can do

Unidentified Participant

Thank you.

Operator

The De final Stanley. with Carlos Morgan comes Alba question from Please proceed.

Carlos De Alba

Yeah. [indiscernible]. Thank will it you. keep I

Is down are Just quarter-on-quarter. expect EBITDA, if see do the but to really? normalized color you continue progression? wanted a cost. those know They or just I have came on not we this any that to how should see start-up trend you

Jim Litinsky

big back us on guess... Carlos were coming quarter. I and Bob, thought I our But congratulate this milestone on to you

Carlos De Alba

saying. That saying. without goes That goes without

Jim Litinsky

ahead, Go Ryan.

Ryan Corbett

into a you them it's a probably little normalized fair circuits question. bit order. as we I'd we process reason the say saw to is started bring on enter No, down more online sequentially, operations it come and that various

operations. commercial sort So consistently, what about been process as of we've talked it it, online, each testing of we've we the to getting bringing would up step consider

of of start-up parts into the And category. the out so of since for part of those costs since the got upstream we period some most fell significant we of running had June, been a relatively kind time of circuits

that but ongoing that, rapidly significantly operation circuits recently. into we've will think very I more added phenomenon continue,

would very QX And QX then, so meaningfully. our think numbers are of But to about off to and and for is, tail fair QX estimate start-up model are sort probably to obviously, fair and I I by way say nonrecurring their nature, difficult predict. a think costs and very would very

Carlos De Alba

very All right. you Thank much.

Ryan Corbett

Thanks, Carlos.

Operator

no additional I this to time. questions back Litinsky. Please are proceed. There Jim hand now at it left will

Jim Litinsky

was this us. milestone just say a I wanted Thanks. exciting an to for

Thanks, talking quarter. for of over we we're forward you we'll team proud work to and back get so to to and work, next -- all look the I'm here, everyone. hard really And the

Operator

concludes conference call. you. That today's Thank

lines. your disconnect now may You

MP Materials (MP) 3 Aug 232023 Q2 Earnings call transcript