Slide 1: Third Quarter 2021 Results
Third Quarter 2021 Results November 4, 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: Third quarter highlights
Third quarter ▪ Achieved record quarterly production and sales volumes highlights ▪ Revenues more than doubled YoY to $99.8M; up +36% sequentially – Strong demand for concentrate resulted in +127% YoY increase in realized price, driven primarily by contained NdPr ▪ Adjusted EBITDA up nearly 6x YoY t
Slide 5: Operations and Financial Overview
Operations and Financial Overview
Slide 6: Continued operational execution
Comparable Operational Metrics—Sequential and Year-over-Year Continued +36% YoY +30% QoQ +127% YoY +5% QoQ operational 12,814 $7,343 $7,693 9,429 9,877 execution $3,393 2020 2021 Q3 2020 Q2 2021 Q3 2021 Q3 2020 Q2 2021 Q3 2021 Stage II Hiring (1) REO Sales Volumes (MT) Realized Price ($/MT REO) +18%
Slide 7: Rapid revenue & earnings growth
(1) Comparable Financial Metrics—Sequential and Year-over-Year Rapid +143% YoY +488% YoY +36% QoQ +47% QoQ $99.8 $68.3 revenue & earnings $73.1 $46.4 growth $41.0 $11.6 2020 2021 Q3 2020 Q2 2021 Q3 2021 Q3 2020 Q2 2021 Q3 2021 (2) Revenue Adjusted EBITDA +32pts YoY +617% YoY +4pts QoQ +55% QoQ 68% $
Slide 8: Significant Stage I normalized free cash flow
(1) YTD 2021 Reported FCF to Normalized Stage I FCF Bridge Significant Stage I normalized free 79.5 2.3 $107.2 cash flow ▪ Normalized Stage I Free Cash Flow of $107.2M or 46.1% of YTD revenue ▪ $38.9M of YTD Offtake Paydown reflected as reduction of GAAP (2) operating cash flows 38.9 ▪ Growth capex
Slide 9: Stage II and Stage III Updates
Stage II and Stage III Updates
Slide 10: Stage II & Stage III progress
Stage II & ▪ Stage II and related work: Continued progress Stage III – Began continuous performance testing of both CHP turbines progress – Recommissioned water treatment plant - now producing on-spec RO water – Ancillary process equipment progressing - deliveries expected within needed timeframes –
Slide 11: Photos
Photos
Slide 12: Overhead Mountain Pass
Overhead Mountain Pass 1
Slide 13: Product finishing foundation and salt crystallizer structure
Product finishing foundation and salt crystallizer structure 2
Slide 14: Concentrate dryer and calciner
Concentrate dryer and calciner 3
Slide 15: Water treatment facility
Water treatment facility i mt 4 el a 9h aks al F ae Ca
Slide 16: Water treatment facility
Water treatment facility
Slide 17: CHP turbine
CHP turbine 6
Slide 18: Biodiversity cultivation – cactus nursery
Biodiversity cultivation – cactus nursery 7
Slide 19: Appendix
EN MP materiacs Appendix
Slide 20: 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 September 30, June 30, (in thousands, unaudited) 2021 2020 2021 Revenue: Product sales $ 98,581 $ 40,864 $ 72,522 Other sales 1,173 158 596 Total reve
Slide 21: Reconciliation Net Income to Adjusted EBITDA
Reconciliation Net Income to Adjusted EBITDA For the three For the three months ended months ended September 30, June 30, (in thousands, unaudited) 2021 2020 2021 Net income $ 42,763 $ 14,627 $ 27,166 Adjusted for: Depreciation, depletion and amortization 6,951 2,179 6,666 Interest expense, net 2,62
Slide 22: Reconciliation Net Income to Adjusted Net Income
Reconciliation Net Income to Adjusted Net Income For the three For the three months ended months ended September 30, June 30, (in thousands, unaudited) 2021 2020 2021 Net income $ 42,763 $ 14,627 $ 27,166 Adjusted for: (1) Depletion 4,754 29 4,686 (2) Stock-based compensation expense 4,552 — 4,498 (
Slide 23: YTD 2021 Cash Flow Bridge
YTD 2021 Cash Flow Bridge(1) 1.1 1.3 2.3 $147.7 35.8 (2.1) 38.9 $109.3 $70.5 Net Cash Offtake Adjusted Working Capital Cash Interest Ore Stockpile Transaction- Tariff Rebate Adjusted EBITDA Provided by Paydown Operating Cash and Taxes Inventory Related & Other (2) Operating Flow Non-Recurring (3) Ac
Slide 24: 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 nine months ended September 30, (in thousands, unaudited) 2021 Net cash provided by operating activities $ 70,464 (1) Additions of property, plant and equipment, net (83,805) Free Cash Flow (13,341) Adju
Slide 25: KPI – Realized Price Reconciliation and Calculation
KPI – Realized Price Reconciliation and Calculation For the three For the three months ended months ended September 30, June 30, (in thousands, unless otherwise stated, unaudited) 2021 2020 2021 Product sales $ 98,581 $ 40,864 $ 72,522 Adjusted for: (1) Shenghe Implied Discount — 34 — (2) Tariff reb
Slide 26: KPI – Production Cost Reconciliation and Calculation
KPI – Production Cost Reconciliation and Calculation For the three For the three months ended months ended September 30, June 30, (in thousands, unless otherwise stated, unaudited) 2021 2020 2021 (1) Cost of sales $ 21,907 $ 15,425 $ 17,955 Adjusted for: (2) Stock-based compensation expense (542) —