MP Materials Corp. · NYSE:MP
MP Materials — 42nd Annual Canaccord Genuity Growth Conference 2022
27 slides from MP Materials's conference presentation, Aug 10, 2022
Slide 1: 42nd Annual Canaccord Genuity Growth Conference
42 Annual Canaccord Genuity nd Growth Conference August 10, 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 references certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Total Value Realized, Production Costs, Free Cash Flow, Normalized Stage I Free Cash Flow, and Adjusted O
Slide 4: Market Overview
aN MP materiacs Market Overview
Slide 5: The world is rapidly electrifying
Projected Global EV Sales Growth The world is rapidly electrifying ~70% share 60M 50M 40M 30M 20M ~16% share 10M ~8% share 0 2021 2025 2040 Source: IEA, BloombergNEF 5
Slide 6: Magnets are synonymous with electrified motion and vital to EVs
Magnets are synonymous with electrified motion and vital to Being fully electric by 2035 implies a 28.6% EVs regardless of battery CAGR in NA demand chemistry 20,000 18,600 15,000 Metric Tons 34x 10,000 5,000 550 0 2020 Fully Electric Projected North American NdPr permanent magnets power NdPr Demand
Slide 7: Significant NdPr supply deficits expected as demand grows
Significant NdPr supply deficits expected as demand grows 0 Equal to 3x the projected NdPr metric tons oxide output of Mountain Pass (20,000) 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: Adamas Intelligence 7
Slide 8: Only MP can provide a fully-integrated Western rare earth supply chain
Only MP can provide a fully- integrated Western rare earth supply chain Scaled Rare Earth Oxide Producer NdPr Magnet Producer MP Materials (mining / separations) MP Materials (magnetics) 8
Slide 9: Company Overview
aN MP materiacs Company Overview
Slide 10: MP Materials At-a-glance
Rich Mountain Pass History MP Materials ~70 years ~$2.0B Since production started at Mountain Pass Capital Invested since 2010 At-a-glance Vast, High-Grade Reserve 35+ year mine life ~6.3% ore grade Based on 2021 Resource and Reserve Study World-class reserve Operating Results 43,387 mt $509M $382M
Slide 11: Mountain Pass rare earth mine and processing facility
Mountain Pass rare earth mine and processing facility • Only scaled site of its kind in the Western Hemisphere; largest ex-China production source • Self-contained with co-located mining, milling, separations & finishing • Fully permitted for extraction, separation & waste management. 11
Slide 12: Mountain Pass: Committed to environmental sustainability
Mountain Pass Committed to environmental sustainability • Operates world’s most sustainable rare earth production facility under stringent California standards • Water recycling meets 95% of processing needs Water Reclamation Facility – Sustainable Water Usage • Eliminated high-risk wet tailings pon
Slide 13: Realizing our downstream vision - Integration of heavy RE separation
Realizing our ▪ Continued focus on completing LREE separations by year-end downstream vision - – – Targeted completion in late 2022 Expect run-rate NdPr production in 2023 Integration of heavy RE separation ▪ Addition of Heavy Rare Earth Separation into Stage II – Department of Defense award of $35M
Slide 14: Magnetics strategy
Magnetics strategy ▪ Initial magnetics facility under construction in Fort Worth, Texas – Expect to produce rare earth metal and NdFeB alloy and magnets – Designed capacity of ~1,000 metric tons of magnets with excess alloy capacity – Will consume less than 10% of current expected Mountain Pass NdPr
Slide 15: Continued operational execution
Comparable Operational Metrics—Sequential and Year-over-Year Continued +90% YoY +1% QoQ operational +1% YoY 11,706 (15)% QoQ $13,818 $13,918 execution 9,877 10,000 $7,343 2021 2022 Stage II Related Q2 2021 Q1 2022 Q2 2022 Q2 2021 Q1 2022 Q2 2022 ▪ YoY production unchanged; QoQ REO Sales Volumes (MT)
Slide 16: Rapid revenue & earnings growth
Comparable Financial Metrics—Sequential and Year-over-Year(1) Rapid +96% YoY +137% YoY revenue & $166.3 (14)% QoQ $132.3 (17)% QoQ $143.6 $110.0 earnings growth $73.1 $46.4 2021 2022 Q2 2021 Q1 2022 Q2 2022 Q2 2021 Q1 2022 Q2 2022 ▪ Revenue growth driven by higher Revenue Adjusted EBITDA(2) realized
Slide 17: Significant Stage I normalized free cash flow
YTD 2022 Reported Free Cash Flow to Normalized Stage I Free Cash Flow Bridge(1) Significant Stage I normalized free cash flow ▪ Normalized Stage I Free Cash Flow of $227.7M or 73.5% of YTD revenue ▪ Offtake Agreement completed in Q1 2022; $13.6M paydown was reflected as a reduction of GAAP operating
Slide 18: Accelerating our mission to restore the full rare earth supply chain to the United States
Accelerating our mission to restore the full rare earth supply chain to the United States.
Slide 19: Appendix
aN MP materiacs Appendix
Slide 20: Summary P&L
Summary P&L MP MATERIALS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the three months ended For the three months ended June 30, March 31, (in thousands, except share and per share data, unaudited) 2022 2021 2022 Revenue: Product sales $ 139,183 $ 72,522 $ 161,755 Other
Slide 21: Reconciliation Net Income to Adjusted EBITDA
Reconciliation Net Income to Adjusted EBITDA For the three For the three months ended months ended June 30, March 31, (in thousands, unaudited) 2022 2021 2022 Net income $ 73,269 $ 27,166 $ 85,551 Adjusted for: Depreciation, depletion and amortization 5,407 6,666 5,260 Interest expense, net 1,326 2,
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 June 30, March 31, (in thousands, unaudited) 2022 2021 2022 Net income $ 73,269 $ 27,166 $ 85,551 Adjusted for: Depletion(1) 3,075 4,686 3,069 Stock-based compensation expense(2) 7,440 4,498 9,773
Slide 23: Reconciliation Diluted EPS to Adjusted Diluted EPS
Reconciliation Diluted EPS to Adjusted Diluted EPS For the three For the three months ended months ended June 30, March 31, (unaudited) 2022 2021 2022 Diluted EPS $ 0.38 $ 0.15 $ 0.45 Adjusted for: Depletion(1) 0.02 0.03 0.01 Stock-based compensation expense 0.04 0.02 0.05 Transaction-related, start
Slide 24: YTD 2022 Cash Flow Bridge
YTD 2022 Cash Flow Bridge(1) (2) (3) 24 1. All figures in millions. May not recompute as presented due to rounding. 2. See “Use of Non-GAAP Financial Measures” for definition and further information. See next slide for a reconciliation to the most comparable metric prepared in accordance with U.S. G
Slide 25: 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 six months ended (in thousands, unaudited) June 30, 2022 Net cash provided by operating activities $ 219,862 Additions to property, plant and equipment, net(1) (117,454) Free Cash Flow 102,408 Adjusted f
Slide 26: 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) 2022 2021 2022 Product sales(1) $ 139,183 $ 72,522 $ 161,755 Total Value Realized(1)(2) 139,183 72,522 161,755 Divided by: R
Slide 27: 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) 2022 2021 2022 Cost of sales(1) $ 22,092 $ 17,955 $ 23,173 Adjusted for: Stock-based compensation expense(2) (506) (578) (7
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