Slide 1: Fourth Quarter & Full Year 2021 Results
Fourth Quarter & Full Year 2021 Results February 24, 2022 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 contains certain non-GAAP financial measures, such as Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Total Value Realized, Production Costs, Free Cash Flow, Normalized Stage I Free Cash Flow, and Adjusted Operating Cash Flow,
Slide 4: 2021 and YTD accomplishments
2021 and YTD ▪ Produced record volume of 42,413 metric tons of REO in 2021; highest in U.S. history Generated robust 2021 financial performance accomplishments ▪ – Increased revenue 2.5x to $332M and Adjusted EBITDA more than 5x to $219M – Earned $154M of Normalized Stage I Free Cash Flow ▪ Strength
Slide 5: Realizing our downstream vision - Initial magnetics facility
Realizing our ▪ Broke ground on initial magnetics facility in Fort Worth, Texas – Expect to produce rare earth metal and NdFeB alloy and magnets downstream vision - – Designed capacity of ~1,000 metric tons of magnets with excess alloy capacity Initial magnetics – Will consume less than 10% of curre
Slide 6: Realizing our downstream vision - Integration of heavy RE separation
Realizing our ▪ Continued focus on completing LREE separations by year-end – Targeted completion in late 2022 downstream vision - – Expect run-rate NdPr production in 2023 Integration of heavy ▪ Addition of Heavy Rare Earth Separation into Stage II RE separation – Department of Defense award of $35M
Slide 7: Stage II Updated process flow
Stage II Updated process flow Third-Party RE Carbonate Handling, Dissolution, Pre-Processing Recycled Material Stage I (simplified) Mining / Crushing Milling Flotation Drying / Roasting Leaching Purification Impurities RE Leach Concentrate Solution Dry Tailings Ce Concentrate RE Solution Aqueous Sol
Slide 8: Stage III and Recycling Illustrative process flow
Stage III and Recycling Illustrative process flow Magnet scrap can re-enter at any point to maximize process efficiency Stage II Stage III Molten salt Strip cast Powder Press Sinter Finish electrolysis Cast magnet Metallurgy Compact Consolidate into Cut/grind to Convert oxide to alloy flakes Particl
Slide 9: Operations and Financial Overview
Operations and Financial Overview
Slide 10: Continued operational execution
Comparable Annual Operational Metrics—Year-over-Year +10% YoY +134% YoY 42,158 $7,745 38,367 Continued operational 26,821 $3,311 execution $2,793 2019 2020 2021 2019 2020 2021 (1) REO Sales Volumes (MT) Realized Price ($/MT REO) 2019 2021 2020 Stage II Related +10% YoY 42,413 $1,980 38,503 +4% YoY $
Slide 11: Rapid revenue & earnings growth
(1) Comparable Annual Financial Metrics—Year-over-Year +147% YoY $332.0 +414% YoY $219.1 Rapid revenue & $134.3 earnings growth $73.4 $1.9 $42.6 2019 2020 2021 2019 2020 2021 (2) Revenue Adjusted EBITDA 2019 2021 +32 pts YoY 2020 66% +693% YoY $168.4 34% $(7.8) $21.2 3% 2019 2020 2021 2019 2020 2021
Slide 12: Continued operational execution
Comparable Operational Metrics—Sequential and Year-over-Year +148% YoY +31% QoQ 12,814 (6)% YoY $10,101 (25)% QoQ Continued 10,320 9,674 $7,693 operational $4,070 execution Q4 2020 Q3 2021 Q4 2021 Q4 2020 Q3 2021 Q4 2021 (1) REO Sales Volumes (MT) Realized Price ($/MT REO) 2020 2021 (4)% YoY Stage I
Slide 13: Rapid revenue & earnings growth
(1) Comparable Financial Metrics—Sequential and Year-over-Year +297% YoY +135% YoY +4% QoQ (1)% QoQ $71.3 $99.8 $99.1 $68.3 Rapid revenue & $42.2 earnings growth $18.0 Q4 2020 Q3 2021 Q4 2021 Q4 2020 Q3 2021 Q4 2021 (2) 2020 2021 Revenue Adjusted EBITDA +29 pts YoY +4 pts QoQ +172%YoY +14% QoQ 72% 6
Slide 14: Significant Stage I normalized free cash flow
(1) Full Year 2021 Reported FCF to Normalized Stage I FCF Bridge Significant Stage I 113.4 2.8 $153.5 normalized free cash flow ▪ Normalized Stage I Free Cash Flow of $153.5M or 46.2% of 2021 revenue ▪ $54.8M of YTD Offtake Paydown 54.8 reflected as reduction of GAAP (2) operating cash flows ▪ Sheng
Slide 15: 11-year increase in Mountain Pass mine life
Comparable Estimated Mineral Reserves +43% +28% 27.33 1.73 11-year increase 19.18 1.35 in Mountain Pass mine life July 1, 2020 Dec. 31 2021 July 1, 2020 Dec. 31 2021 Ore (MM MT) Contained REO (MM MT) ▪ ~380K MT increase in estimated proven and probable contained REO reserves +11 yrs ▪ ~457K MT of co
Slide 16: Accelerating our mission to restore the full rare earth supply chain
Accelerating our mission to restore the full rare earth supply chain to the United States.
Slide 17: Photos
Photos 17
Slide 18: Construction progress
Construction progress Concentrate dryer and roaster
Slide 19: Construction progress
Construction progress Product finishing and salt crystallizer
Slide 20: Mountain Pass
Mountain Pass Dry tailings / water recycling plant
Slide 21: Mountain Pass
Mountain Pass Mill pad
Slide 22: Mountain Pass
Mountain Pass Haul truck fleet
Slide 23: Mountain Pass
Mountain Pass Aerial view
Slide 24: Appendix
aD MP maeteriacs Appendix
Slide 25: Summary P&L
Summary P&L MP MATERIALS CORP. AND SUBSIDIARIES 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) 2021 2020 2021 2021 2020 2019 Revenue: Product sales $ 97,721 $ 4
Slide 26: Reconciliation Net Income (Loss) to Adjusted EBITDA
Reconciliation Net Income (Loss) to Adjusted EBITDA For the three For the three months ended months ended December 31, September 30, For the year ended December 31, (in thousands, unaudited) 2021 2020 2021 2021 2020 2019 Net income (loss) $ 48,989 $ 24,114 $ 42,763 $ 135,037 $ (21,825) $ (6,755) Adj
Slide 27: Reconciliation Net Income (Loss) to Adjusted Net Income (Loss)
Reconciliation Net Income (Loss) to Adjusted Net Income (Loss) For the three For the three months ended months ended December 31, September 30, For the year ended December 31, (in thousands, unaudited) 2021 2020 2021 2021 2020 2019 Net income (loss) $ 48,989 $ 24,114 $ 42,763 $ 135,037 $ (21,825) $
Slide 28: YTD 2021 Cash Flow Bridge
YTD 2021 Cash Flow Bridge(1) 2.9 2.8 $219.1 5.4 53.3 (2.1) 54.8 $156.8 $102.0 Net Cash Offtake Adjusted Working Capital Cash Interest Ore Stockpile Transaction- Tariff Credits Adjusted EBITDA Provided by Paydown Operating Cash and Taxes Inventory Related & Other (2) Operating Flow Non-Recurring (3)
Slide 29: 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, 2021 Net cash provided by operating activities $ 101,971 (1) Additions of property, plant and equipment, net (119,488) Free Cash Flow (17,517) Adjusted f
Slide 30: 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) 2021 2020 2021 2021 2020 2019 Product sales $ 97,721 $ 41,998 $ 98,581 $ 328,563 $ 1
Slide 31: 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) 2021 2020 2021 2021 2020 2019 (1) Cost of sales $ 18,455 $ 18,841 $ 21,907 $ 76,253