Slide 1: Fourth Quarter & Full Year 2022 Results
Fourth Quarter & Full Year 2022 Results February 23, 2023 1
Slide 2: Safe Harbor
Safe Harbor This presentation contains certain statements that are not historical facts and are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of w
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation references certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Total Value Realized, Production Costs, Free Cash Flow, Normalized Stage I Free Cash Flow, and Adjusted O
Slide 4: 2022 and YTD accomplishments
2022 and YTD ▪ Produced and shipped record volumes in 2022 accomplishments ▪ Achieved robust 2022 financial results – Increased revenue 59% and Adjusted EBITDA 77% – Generated $353.2M of Normalized Stage I Free Cash Flow ▪ Maintained our fortress balance sheet (1) ▪ $1.2B/$492M of gross/net cash aft
Slide 5: Operations and Financial Overview
Operations and Financial Overview
Slide 6: Full year operating metrics
Comparable Annual Operational Metrics—Year-over-Year +2% YoY +55% YoY Full year 42,158 43,198 $11,974 38,367 operating metrics $7,745 2020 2022 $3,311 2021 Stage II Related 2020 2021 2022 2020 2021 2022 (1) REO Sales Volumes (MT) Realized Price ($/MT REO) +16% YoY —% YoY $1,728 42,413 42,499 $1,493
Slide 7: Full year financial metrics
(1) Comparable Annual Financial Metrics—Year-over-Year +59% YoY +77% YoY Full year $527.5 $388.6 financial metrics $332.0 $219.1 2020 2022 $134.3 2021 $42.6 2020 2021 2022 2020 2021 2022 (2) Revenue Adjusted EBITDA +8 pts YoY 74% +102% YoY 66% $1.68 34% $0.83 $0.25 2020 2021 2022 2020 2021 2022 (3)
Slide 8: Fourth quarter operating metrics
Comparable Operational Metrics—Sequential and Year-over-Year +12% YoY +1% QoQ 10,816 Fourth quarter 10,676 9,674 $11,636 (16)% YoY $10,101 (27)% QoQ operating metrics $8,515 2021 2022 Stage II Related Q4 2021 Q3 2022 Q4 2022 Q4 2021 Q3 2022 Q4 2022 (1) REO Sales Volumes (MT) Realized Price ($/MT REO
Slide 9: Fourth quarter financial metrics
(1) Comparable Financial Metrics—Sequential and Year-over-Year $91.4 Fourth quarter $124.4 (6)% YoY (25)% QoQ $71.3 (23)% YoY financial metrics $99.1 (40)% QoQ $93.2 $55.1 2021 2022 Q4 2021 Q3 2022 Q4 2022 Q4 2021 Q3 2022 Q4 2022 (2) Revenue Adjusted EBITDA +40% YoY (13) pts YoY +17% QoQ 72% 73% (14
Slide 10: Stage I normalized free cash flow
(1) Full Year 2022 Reported FCF to Normalized Stage I FCF Bridge Stage I 9.5 $353.2 308.1 normalized free cash flow ▪ Normalized Stage I Free Cash Flow of $353.2M or 67.0% of 2022 revenue ▪ Offtake Agreement completed in Q1 2022; $13.6M paydown was reflected as reduction of GAAP operating cash (2) f
Slide 11: Concentrate Dryer and Roaster
Concentrate Dryer and Roaster
Slide 12: NdPr Finishing
NdPr Finishing
Slide 13: Stage III Magnetics Facility
Stage III Magnetics Facility
Slide 14: Restoring the Full U.S. Rare Earth Supply Chain
Restoring the Full U.S. Rare Earth Supply Chain
Slide 15: Photos
Photos 15
Slide 16: Crystallizer
Crystallizer
Slide 17: Leach
Leach
Slide 18: Mill Pad
Mill Pad
Slide 19: Concentrate Packaging
Conce 33@ ag Packaginga® @ @ 88 GG00900 90 @naesacaceess 33°302 = * ES! acs ae &.= AQ i ‘es
Slide 20: Appendix
aD MP maeteriacs Appendix
Slide 21: Summary P&L
Summary P&L CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the three For the three months ended months ended December 31, September 30, For the year ended December 31, (in thousands, unaudited) 2022 2021 2022 2022 2021 2020 Revenue: Product sales $ 92,098 $ 97,721 $ 124,231 $ 517,267 $ 328,563
Slide 22: Reconciliation Net Income (Loss) to Adjusted EBITDA
Reconciliation Net Income (Loss) to Adjusted EBITDA For the three months ended For the three months ended September December 31, 30, For the year ended December 31, (in thousands, unaudited) 2022 2021 2022 2022 2021 2020 Net income (loss) $ 67,007 $ 48,989 $ 63,177 $ 289,004 $ 135,037 $ (21,825) Adj
Slide 23: Reconciliation Net Income (Loss) to Adjusted Net Income
Reconciliation Net Income (Loss) to Adjusted Net Income For the three For the three months ended months ended December 31, September 30, For the year ended December 31, (in thousands, unaudited) 2022 2021 2022 2022 2021 2020 Net income (loss) $ 67,007 $ 48,989 $ 63,177 $ 289,004 $ 135,037 $ (21,825)
Slide 24: Reconciliation Diluted EPS to Adjusted Diluted EPS
Reconciliation Diluted EPS to Adjusted Diluted EPS For the three For the three months ended months ended December 31, September 30, For the year ended December 31, (unaudited) 2022 2021 2022 2022 2021 2020 Diluted EPS $ 0.33 0.36 $ 0.26 $ $ 1.52 $ 0.73 $ (0.27) Adjusted for: (1) Stock-based compensa
Slide 25: YTD 2022 Cash Flow Bridge
YTD 2022 Cash Flow Bridge(1) 9.5 $388.6 13.9 7.4 13.6 $357.1 0.8 $343.5 Net Cash Provided Offtake Paydown Adjusted Operating Working Capital Cash Paid for Ore Stockpile Transaction- Adjusted EBITDA (2) by Operating Cash Flow Interest and Taxes, Inventory Related, Start-up & (3) Activities net Other
Slide 26: Reconciliations Net Cash Provided by Operating Activities to Non-GAAP Financial Measures
Reconciliations Net Cash Provided by Operating Activities to Non-GAAP Financial Measures For the year ended (in thousands, unaudited) December 31, 2022 Net cash provided by operating activities $ 343,514 (1) Additions of property, plant and equipment, net (321,465) Free Cash Flow 22,049 Adjusted for
Slide 27: KPI – Realized Price Reconciliation and Calculation
KPI – Realized Price Reconciliation and Calculation For the three For the three months ended months ended December 31, September 30, For the year ended December 31, (in thousands, unless otherwise stated, unaudited) 2022 2021 2022 2022 2021 2020 Product sales $ 92,098 $ 97,721 $ 124,231 $ 517,267 $
Slide 28: KPI – Production Cost Reconciliation and Calculation
KPI – Production Cost Reconciliation and Calculation For the three For the three months ended months ended December 31, September 30, For the year ended December 31, (in thousands, unless otherwise stated, unaudited) 2022 2021 2022 2022 2021 2020 (1) Cost of sales $ 24,536 $ 18,455 $ 22,417 $ 92,218