Slide 1: Q1 2023 Results
Q1 2023 Results MAY 4, 2023
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, Production Costs, and Free Cash Flow, which have not been prepared in accordance with generally accepted
Slide 4: Highlights
Highlights Stage I Upstream Stage II Midstream Stage III Downstream • Production volumes over • Startup of leach and brine • Process engineering and 10,000MT for the eighth treatment facilities underway long lead procurement consecutive quarter continues • Preparing to fully • Strong Adjusted EBITDA
Slide 5: Operations and Financial Overview
Operations and Financial Overview
Slide 6: Stage I Operating Metrics
Stage I Operating Metrics Continued strong production of REO in Sales volumes driven by timing of Realized pricing impacted by decline in Cost control in Stage I remains robust, concentrate, including roasted deliveries; expect to charge additional market prices for NdPr; expect at least a with incr
Slide 7: Financial Metrics
Financial Metrics Change in revenue reflects market pricing Adjusted EBITDA similarly reflects market Demonstrated margin resilience despite Comparisons impacted by flow-through for rare earth materials prices offset by continued cost control difficult pricing compares of earnings and discrete tax i
Slide 8: Restoring the Full U.S. Rare Earth Supply Chain
Restoring the Full U.S. Rare Earth Supply Chain
Slide 9: Appendix
Appendix
Slide 10: P&L: Condensed Consolidated Statements of Operations
P&L MP Materials Corp. and Subsidiaries For the three months Condensed Consolidated Statements of Operations For the three months ended March 31, ended December 31, (in thousands, except share and per share data, unaudited) 2023 2022 2022 Revenue: Product sales $ 95,666 $ 161,755 $ 92,098 Other sale
Slide 11: Reconciliation: Net Income to Adjusted EBITDA
Reconciliation: Net Income to Adjusted EBITDA For the three months For the three months ended March 31, ended December 31, (in thousands, unaudited) 2023 2022 2022 Net income $ 37,447 $ 85,551 $ 67,007 Adjusted for: Depreciation, depletion and amortization 8,122 5,260 5,593 Interest expense, net 1,3
Slide 12: Reconciliation: Net Income to Adjusted Net Income
Reconciliation: Net Income to Adjusted Net Income For the three months For the three months ended March 31, ended December 31, (in thousands, unaudited) 2023 2022 2022 Net income $ 37,447 $ 85,551 $ 67,007 Adjusted for: Stock-based compensation expense(1) 7,013 9,773 6,761 (2) Start-up costs 4,564 1
Slide 13: Reconciliation: Diluted EPS to Adjusted Diluted EPS
Reconciliation: Diluted EPS to Adjusted Diluted EPS For the three months For the three months ended March 31, ended December 31, (unaudited) 2023 2022 2022 Diluted EPS $ 0.20 $ 0.45 $ 0.36 Adjusted for: Stock-based compensation expense 0.04 0.05 0.03 Start-up costs 0.02 0.01 0.02 Transaction-related
Slide 14: First Quarter 2023 Cash Flow Bridge
(1) First Quarter 2023 Cash Flow Bridge 7.4 1.8 $58.7 $55.5 2.8 (3.0) (5.8) Net Cash Provided Working Capital Cash Received Ore Stockpile Start-Up Costs and Other Items Adjusted EBITDA by Operating from Interest and Inventory Transaction- Activities Investment Related and Other Income(2) Non-Recurri
Slide 15: Reconciliation: Net Cash from Operating Activities to Free Cash Flow
Reconciliation: Net Cash Provided by Operating Activities to Free Cash Flow For the three months (in thousands, unaudited) ended March 31, 2023 Net cash provided by operating activities $ 55,491 Additions to property, plant and equipment (74,462) Free Cash Flow $ (18,971) 15
Slide 16: Reconciliation and Calculation: Production Cost KPI
Reconciliation and Calculation: Production Cost KPI For the three months For the three months ended March 31, ended December 31, (in thousands, unless otherwise stated, unaudited) 2023 2022 2022 (1) Cost of sales $ 24,216 $ 23,173 $ 24,536 Adjusted for: Stock-based compensation expense(2) (1,122) (7