Slide 1: Fourth Quarter & Full Year 2020 Results
Fourth Quarter & Full Year 2020 Results March 18, 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 Net Income (Loss), Total Value Realized, Production Costs, Free Cash Flow, Normalized Stage I Free Cash Flow, and Adjusted Operating Cash Flow, which have not been pre
Slide 4: Fourth quarter highlights
• Achieved record fourth quarter and full year production and sales ‒ Q4 realized prices up 70% YoY while cost per ton slightly lower Fourth quarter ‒ Q4 revenue up 100% YoY to $42.2M; Adjusted EBITDA up 297% YoY highlights to $18.0M ‒ Margin improved 21pts to 42.6% • Listed on NYSE on November 18th
Slide 5: Continued operational execution
+43% YoY +21% YoY +70% YoY Continued 38,367 10,320 $4,070 +19% YoY operational 8,561 26,821 $2,793 $3,311 execution $2,389 Q4 FY Q4 FY REO Sales Volumes (MT) Realized Price1 ($/MT REO) 2019 2020 +39% YoY +8% YoY 38,503 9,337 (1%) YoY 8,673 $1,602 $1,589 27,620 $1,980 (28%) YoY $1,430 Q4 FY Q4 FY REO
Slide 6: Stage II status & roadmap
• Stage II Optimization remains on track Stage II status ‒ Long-lead equipment deliveries have begun & roadmap ‒ Fixed-price EPC contract is signed, and construction is underway • Design improvements de-risk execution and are expected to improve recoveries, provide flexibility and enhance our enviro
Slide 7: Financial Overview
Financial Overview
Slide 8: Rapid revenue & earnings growth
Rapid Q4 2020 Summary Financial Metrics(1) +100% YoY revenue & $42.2 +21.1 pts earnings +297% YoY 42.6% +1,003% YoY growth $21.0 $18.0 21.5% $21.9 $4.5 $2.0 2019 2020 Revenue Adj. EBITDA(2) Adj. EBITDA margin Adj. Net Income(2) FY 2020 Summary Financial Metrics(1) +83% YoY $134.3 +31.8 pts $73.4 +2,
Slide 9: Significant Stage I free cash flow
FY 2020 Reported FCF to Normalized Stage I FCF Bridge ($M) Significant Stage I free cash flow • Normalized Stage I Free Cash Flow of $34.0M or 25.3% of sales(1) • $21.3M of Offtake Paydown reflected as reduction of GAAP operating cash flows(2) • Expect growth in Normalized Stage I Free Cash Flow as
Slide 10: Capitalization update
Capitalization update In millions, except shares and per share data Diluted Shares Outstanding 171,117,641 • Raised $545.0M of gross proceeds in Business Add: TSM for outstanding warrants at $44.09/share 8,500,430 Combination Fully Diluted Shares Outstanding 179,618,071 • Net cash balance of $519.7M
Slide 11: FY21 operating framework
FY21 operating • Anticipate modest volume growth for full year framework • Expect consistent per unit production costs for full year ‒ Fixed cost leverage partially offset by investment in headcount • Ramp in Stage II capital costs beginning late in Q1, with the bulk of cash costs in Q3 and Q4 • Cur
Slide 12: Market environment & opportunity
Market • Electrification is accelerating environment & ‒ Auto OEMs sunsetting ICE (GM, Ford, Volvo) ‒ 10 U.S. states have adopted California Zero-Emission Vehicle opportunity standards ‒ Significant capital formation occurring with boom in U.S. EV-related financings • MP is well-positioned to serve
Slide 13: Q&A
Q&A
Slide 14: Appendix
Xd MP maeteriacs Appendix
Slide 15: Summary P&L
Summary P&L MP MATERIALS CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three months ended Year ended (Unaudited) December 31, December 31, 2020 2019 2020 2019 (in thousands) Product sales (including sales to related parties) $ 42,178 $ 21,048 $ 134,310 $ 73,411 Operating costs and expenses (
Slide 16: Reconciliation Net Income (Loss) to Adjusted EBITDA
Reconciliation Net Income (Loss) to Adjusted EBITDA MP MATERIALS CORP. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED Three months ended Year ended EBITDA December 31, December 31, (Unaudited) 2020 2019 2020 2019 (in thousands) Net income (loss) $ 24,114 $ 1,037 $ (21,825) $ (6,755) Adjusted for: D
Slide 17: Reconciliation Net Income (Loss) to Adjusted Net Income (Loss)
Reconciliation Net Income (Loss) to Adjusted Net Income (Loss) MP MATERIALS CORP. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED Three months ended Year ended NET INCOME (LOSS) December 31, December 31, (Unaudited) 2020 2019 2020 2019 (in thousands) Net income (loss) $ 24,114 $ 1,037 $ (21,825) $ (
Slide 18: FY20 Cash Flow Bridge
FY20 Cash Flow Bridge (1) Net Cash Adjusted Working Cash Ore Deal Costs Offtake Tariff Adjusted Provided by Operating Capital Interest Stockpile & One-Time Paydown Credits EBITDA Operating Activities Cash Flow(2) & Other & Taxes Inventory Items(3) 18 1. All figures in millions 2. Defined as net cash
Slide 19: Net Cash Provided by Operating Activities to Non-GAAP Financial Measures
Reconciliations Net Cash Provided by Operating Activities to Non-GAAP Financial Measures MP MATERIALS CORP. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW, NORMALIZED STAGE I FREE CASH FLOW, AND ADJUSTED OPERATING CASH FLOWS Year ended (Unaudited) December 31, 2020 (in
Slide 20: KPI – Realized Price Reconciliation and Calculation
KPI – Realized Price Reconciliation and Calculation MP MATERIALS CORP. RECONCILIATION OF GAAP PRODUCT SALES TO NON-GAAP TOTAL VALUE REALIZED Three months ended Year ended (Unaudited) December 31, December 31, 2020 2019 2020 2019 (in thousands, unless otherwise stated) Product Sales $ 42,178 $ 21,048
Slide 21: KPI – Production Cost Reconciliation and Calculation
KPI – Production Cost Reconciliation and Calculation MP MATERIALS CORP. RECONCILIATION OF GAAP COST OF SALES TO NON-GAAP PRODUCTION COSTS Three months ended Year ended (Unaudited) December 31, December 31, 2020 2019 2020 2019 (in thousands, unless otherwise stated) Cost of sales (1) $ 18,841 $ 16,22