Slide 1: Second Quarter 2021 Results
Second Quarter 2021 Results August 5, 2021 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 t
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, Total Value Realized, Production Costs, Free Cash Flow, Normalized Stage I Free Cash Flow, and Adjusted Operating Cash Flow, which
Slide 4: Second quarter highlights
Second quarter ▪ Achieved record production volumes highlights ▪ Revenues more than doubled YoY to $73.1M; up +22% sequentially – Strong sales volumes in-line with record production levels – Growing NdPr demand drove +137% YoY increase in realized price ▪ Adjusted EBITDA up nearly 6x YoY to $46.4M;
Slide 5: Operations and Financial Overview
Operations and Financial Overview
Slide 6: Continued operational execution
Comparable Operational Metrics—Sequential and Year-over-Year +137% YoY (4)% YoY +25% QoQ +1% QoQ $7,343 10,297 9,877 9,793 Continued $5,891 operational $3,093 execution Q2 2020 Q1 2021 Q2 2021 Q2 2020 Q1 2021 Q2 2021 (1) REO Sales Volumes (MT) Realized Price ($/MT REO) 2020 2021 +9% YoY +11% YoY +4%
Slide 7: Rapid revenue & earnings growth
Comparable Financial Metrics—Sequential and Year-over-Year(1) +141% YoY +491% YoY +22% QoQ +41% QoQ $73.1 $46.4 Rapid $60.0 $33.0 revenue & $30.4 earnings $7.9 growth Q2 2020 Q1 2021 Q2 2021 Q2 2020 Q1 2021 Adjusted EBITDA (2) Q2 2021 Revenue +36pts YoY 2020 2021 +7pts QoQ +583% YoY +44% QoQ 64% 57%
Slide 8: Significant Stage I normalized free cash flow
YTD 2021 Reported FCF to Normalized Stage I FCF Bridge ($M) Significant Stage I normalized free 42.8 1.3 $70.3 cash flow ▪ Normalized Stage I Free Cash Flow of $70.3M or 52.8% of YTD sales(1) ▪ $22.9M of YTD Offtake Paydown reflected as reduction of GAAP 22.9 operating cash flows(2) ▪ Growth capex i
Slide 9: Capitalization update
Capitalization update In millions, except shares and per share data Adj. Diluted Shares Outstanding(1) 178,229,745 ▪ Cashless redemption of Warrants completed Share price (close 8/4) $35.63 in June Market Capitalization $ 6,350.3 – No remaining earn-outs or warrants (Cash) (1,196.9) ▪ Gross cash bal
Slide 10: Stage II and Stage III Updates
Stage II and Stage III Updates
Slide 11: Stage II progress
Stage II progress Salt Crystallizer Foundation Concentrate Dryer 11 Crystallizer Vapor Effect Concentrate Filter Press Structure
Slide 12: Stage II progress
Stage II progress ▪ Stage II: Continued Progress – Roaster has arrived at Mountain Pass – Site preparations continue – Stage II run-rate production still expected in 2023 ▪ Heavy rare earth opportunity – Separating heavy rare earths solidifies domestic magnet making opportunity – Piloting is support
Slide 13: Stage III developments
Stage III ▪ Announcing intent to build a metal, alloy, and magnet making manufacturing facility in the United States developments – Important step in our buy, build and/or JV go-to-market strategy – Advanced due diligence and site selection ongoing expect to announce location by year-end – Modest, s
Slide 14: Western champion of the electrification and sustainability revolution
Western champion ▪ World-class execution continues of the electrification ▪ NdPr demand remains strong and sustainability ▪ Stage II progressing Increased confidence in heavy rare earth separation at revolution ▪ Mountain Pass ▪ Stage III accelerating via planned modest, scalable facility ▪ Position
Slide 15: Q&A
Q&A
Slide 16: Appendix
EN MP materiacs Appendix
Slide 17: 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 June 30, March 31, (in thousands, unaudited) 2021 2020 2021 Product sales $ 73,118 $ 30,391 $ 59,971 Operating costs and expenses: Cost of sales (excl
Slide 18: Reconciliation Net Income (Loss) to Adjusted EBITDA
Reconciliation Net Income (Loss) to Adjusted EBITDA For the three For the three months ended months ended June 30, March 31, (in thousands, unaudited) 2021 2020 2021 Net income (loss) $ 27,166 $ (62,491) $ 16,119 Adjusted for: Depreciation, depletion and amortization 6,666 1,382 6,150 Interest expen
Slide 19: 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 June 30, March 31, (in thousands, unaudited) 2021 2020 2021 Net income (loss) $ 27,166 $ (62,491) $ 16,119 Adjusted for: (1) Depletion 4,686 28 4,531 (2) Stock-based compensation expense 4,4
Slide 20: YTD 2021 Cash Flow Bridge
YTD 2021 Cash Flow Bridge(1) 2.4 1.3 $79.4 4.5 0.1 22.9 $70.9 (2.1) $48.0 Net Cash Offtake Adjusted Working Capital Cash Interest Ore Stockpile Deal Costs & (3) Tariff Credits Adjusted EBITDA Provided by Paydown Operating (2) Cash and Taxes Inventory One-Time Items Operating Flow Activities 20 1. Al
Slide 21: Reconciliations Net Cash Provided by Operating Activities
Reconciliations Net Cash Provided by Operating Activities to Non-GAAP Financial Measures For the six months ended June 30, (in thousands, unaudited) 2021 Net cash provided by operating activities $ 47,969 Additions of property, plant and equipment (44,691) Free Cash Flow 3,278 Adjusted for: (1) Reve
Slide 22: KPI – Realized Price Reconciliation and Calculation
KPI – Realized Price Reconciliation and Calculation For the three For the three months ended months ended June 30, March 31, (in thousands, unless otherwise stated, unaudited) 2021 2020 2021 Product sales $ 73,118 $ 30,391 $ 59,971 Adjusted for: (1) Shenghe Implied Discount — 3,023 — (2) Other (596)
Slide 23: KPI – Production Cost Reconciliation and Calculation
KPI – Production Cost Reconciliation and Calculation For the three For the three months ended months ended June 30, March 31, (in thousands, unless otherwise stated, unaudited) 2021 2020 2021 (1) Cost of sales $ 17,955 $ 16,865 $ 17,936 Adjusted for: Cost attributable to sales of stockpiles (6) (112