Slide 1: First Quarter 2021 Results
First Quarter 2021 Results May 6, 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: First quarter highlights
• Achieved record first quarter production and sales volumes First quarter • Low-cost position demonstrated in record financials highlights ‒ Revenues tripled YoY to $60M; up 42% sequentially ‒ Adjusted EBITDA up more than 6x YoY to $33M; up 84% sequentially ‒ Adj. EBITDA margin up 32pts YoY to 57.0
Slide 5: Continued operational execution
+132% YoY +45% QoQ +18% YoY 5,891 Continued (5%) QoQ 10,320 9,793 operational 4,070 8,321 2,544 execution Q1 2020 Q4 2020 Q1 2021 Q1 2020 Q4 2020 Q1 2021 REO Sales Volumes (MT) Realized Price(1) ($/MT REO) 2020 2021 +2% YoY +5% QoQ 9,682 9,849 9,337 +13% YoY (7%) QoQ 1,300 1,589 1,475 Q1 2020 Q4 202
Slide 6: Stage II update
Stage II • Stage II: Construction in full swing update ‒ Completed pre-civil site work early in quarter: grading, line relocations and demolition of legacy equipment ‒ Foundation work for critical new equipment in progress ‒ Fabrication of roaster nearly complete with expected near-term delivery ‒ F
Slide 7: Financial Overview
Financial Overview
Slide 8: Rapid revenue & earnings growth
Comparable Financial Metrics—Sequential and Year-over-Year(1) +189% YoY +42% QoQ Rapid $60.0 +537% YoY revenue & +84% QoQ $42.2 $33.0 earnings $20.7 $5.2 $18.0 growth Q1 2020 Q4 2020 Revenue Q1 2021 Q1 2020 Q4 2020 Adjusted EBITDA(2) Q1 2021 +32pts YoY 2020 2021 +14pts QoQ 57.0% 42.6% +801% YoY +6%
Slide 9: Significant Stage I free cash flow
Q1 2021 Reported FCF to Normalized Stage I FCF Bridge ($M) Significant Stage I free cash flow • Normalized Stage I Free Cash Flow of $21.2M or 35.4% of sales(1) • $11.3M of Offtake Paydown reflected as reduction of GAAP operating cash flows(2) • Growth capex is primarily Stage II Optimization spendi
Slide 10: Capitalization update
Capitalization update In millions, except shares and per share data Adj. Diluted Shares Outstanding(1) 178,310,790 • Raised $672.3M of net proceeds in Green Share price (close 5/5) $31.49 Convertible Notes offering Market Capitalization $ 5,615.0 • Gross cash balance of ~$1.2B (Cash) (1,181.5) Finan
Slide 11: Western champion of the electrification and sustainability revolution
• Collocated, world-class asset Western champion ‒ Quality and scale yield low-cost position of the electrification • Structural and financial advantage and sustainability ‒ Rare earths are not “rare,” but the ability to add scaled supply is revolution • Profitable and cash generative Stage I ‒ Hard
Slide 12: Q&A
Q&A
Slide 13: Appendix
Xd MP materiacs Appendix
Slide 14: 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 March 31, December 31, (in thousands, unaudited) 2021 2020 2020 Product sales $ 59,971 $ 20,719 $ 42,178 Operating costs and expenses 38,262 18,073 34
Slide 15: Reconciliation Net Income to Adjusted EBITDA
Reconciliation Net Income to Adjusted EBITDA 1. For the three months ended March 31, 2021, and December 31, 2020, amounts reflect the grants of restricted stock and restricted stock units, which were principally issued in connection with the Business Combination. Principally included in “General and
Slide 16: Reconciliation Net Income to Adjusted Net Income
Reconciliation Net Income to Adjusted Net Income 1. Principally includes the depletion associated with the mineral rights for the rare earth ores contained in the Company’s mine, which were recorded in connection with the SNR Mineral Rights Acquisition at fair value as of the date of the Business Co
Slide 17: Q1 2021 Cash Flow Bridge
Q1 2021 Cash Flow Bridge (1) Net Cash Adjusted Cash Ore Deal Costs Offtake Working Tariff Adjusted Provided by Operating Interest Stockpile & One-Time Paydown Capital Credits EBITDA Operating Activities Cash Flow(2) & Taxes Inventory Items(3) 17 1. All figures in millions 2. Defined as net cash prov
Slide 18: Reconciliations Net Cash Provided by Operating Activities to Non-GAAP Financial Measures
Reconciliations Net Cash Provided by Operating Activities to Non-GAAP Financial Measures 18 1. Referred to previously as Offtake Paydown. Under the terms of the A&R Offtake Agreement and pursuant to the accounting treatment thereof, we recognized $11.3 million of non-cash revenue during the three mo
Slide 19: KPI – Realized Price Reconciliation and Calculation
KPI – Realized Price Reconciliation and Calculation 19 1. Represents the difference between the contractual amount realized by Shenghe and the amount of deferred revenue we recognized. 2. Includes mainly the net impact of a tariff rebate from Shenghe due to the retroactive effect of lifting of a Chi
Slide 20: KPI – Production Cost Reconciliation and Calculation
KPI – Production Cost Reconciliation and Calculation 20 1. Excluding depreciation, depletion and amortization. 2. Pertains only to the amount of stock-based compensation expense included in cost of sales (as opposed to general and administrative). 3. May not recompute as presented due to rounding.