Slide 1: Q2 2023 Results
Q2 2023 Results August 3, 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 • Record production achieved • Commenced production of • Metal and alloy production in a quarter with a planned separated rare earth equipment being installed maintenance outage products • R&D and product • Strong Adjusted EBITDA •
Slide 5: Operations and Financial Overview
Operations and Financial Overview
Slide 6: Stage I Operating Metrics
Stage I Operating Metrics Highest concentrate production in a Sales volumes driven by higher Realized pricing impacted by decline in Cost control in Stage I remains robust, quarter with a planned maintenance production offset by the charging of market prices for NdPr; expect low teens with increment
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 updated ful
Slide 8: Stage II Update
Stage II Update
Slide 9: Slide 9
Slide 10: Appendix
Appendix
Slide 11: 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 June 30, ended March 31, (in thousands, except share and per share data, unaudited) 2023 2022 2023 Revenue: Product sales $ 64,001 $ 139,183 $ 95,666 Other sales 23
Slide 12: Reconciliation: Net Income to Adjusted EBITDA
Reconciliation: Net Income to Adjusted EBITDA For the three months For the three months ended June 30, ended March 31, (in thousands, unaudited) 2023 2022 2023 Net income $ 7,395 $ 73,269 $ 37,447 Adjusted for: Depreciation, depletion and amortization 12,203 5,407 8,122 Interest expense, net 1,392 1
Slide 13: Reconciliation: Net Income to Adjusted Net Income
Reconciliation: Net Income to Adjusted Net Income For the three months For the three months ended June 30, ended March 31, (in thousands, unaudited) 2023 2022 2023 Net income $ 7,395 $ 73,269 $ 37,447 Adjusted for: Stock-based compensation expense(1) 5,730 7,440 7,013 (2) Start-up costs 3,828 812 4,
Slide 14: Reconciliation: Diluted EPS to Adjusted Diluted EPS
Reconciliation: Diluted EPS to Adjusted Diluted EPS For the three months For the three months ended June 30, ended March 31, (unaudited) 2023 2022 2023 Diluted EPS $ 0.04 $ 0.38 $ 0.20 Adjusted for: Stock-based compensation expense 0.03 0.04 0.04 Start-up costs 0.02 — 0.02 Transaction-related and ot
Slide 15: Year-to-Date 2023 Cash Flow Bridge
(1) Year-to-Date 2023 Cash Flow Bridge 4.6 $85.7 15.9 23.1 $65.5 (11.9) (11.5) Net Cash Provided Working Cash Paid for Taxes Cash Received Start-Up Costs and Other Items(5) Adjusted EBITDA by Operating Capital(2) from Interest and Transaction- Activities Investment Related and Other Income(3) Non-Re
Slide 16: Reconciliation: Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation: Net Cash Provided by Operating Activities to Free Cash Flow For the six months ended (in thousands, unaudited) June 30, 2023 Net cash provided by operating activities $ 65,459 Additions to property, plant and equipment (130,236) Free Cash Flow $ (64,777) 16
Slide 17: Reconciliation and Calculation: Production Cost KPI
Reconciliation and Calculation: Production Cost KPI For the three months For the three months ended June 30, ended March 31, (in thousands, unless otherwise stated, unaudited) 2023 2022 2023 Cost of sales (excluding depreciation, depletion and amortization) $ 22,704 $ 22,092 $ 24,216 Adjusted for: S