Mp Materials Corp. · NYSE:MP
Mp Materials — Investor Presentation (February 2021)
26 slides from Mp Materials's investor presentation, Feb 24, 2021
Slide 1: February 2021 Investor Presentation
February 2021 Investor Presentation February 24, 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 Projections and Non-GAAP Measures
Use of Projections and Non-GAAP Measures This presentation contains projected financial information with respect to MP Materials, namely MP Materials’ Adjusted EBITDA for 2023. Such projected financial information constitutes forward-looking information and is for illustrative purposes only, and sho
Slide 4: Business Overview
Business Overview
Slide 5: MP Materials Introduction
• Owns and operates Mountain Pass, the only scaled rare earth mining and processing facility in the Western Hemisphere • Completed its Business Combination with Fortress Value Acquisition Corp. on November 17, 2020; now listed on the NYSE with ticker symbol “MP” MP Materials • Raised $545 million to
Slide 6: MP Materials At-A-Glance
Rich Rare Earths History ~70 years $1.7B Since Production Started at Mountain Pass Capital Invested Since 2010 Vast, High-Grade Reserve MP Materials 948k mt tREO >7% ore grade At-A-Glance Recoverable Resources and Reserves World-Class Reserve Stage I: Largest Ex-China Producer of REOs ~38,000 mt ~15
Slide 7: NdPr magnets are found in more than 90% of EV motors
While EV battery technology continues to evolve, NdPr magnets are found in more than 90% of EV motors Tesla, GM, Ford, VW, Hyundai, Toyota, Rivian and most other EV OEMs rely on NdPr magnet motors Business Overview 7
Slide 8: EVs driving explosive growth in magnets for electric powertrains
EVs are driving $10.7B explosive growth— magnets for electric powertrains are 31% CAGR expected to grow 15x in the next decade $710M 2020E 2030E EV Motor Magnet Market (EV Powertrains Only, Value) Business Overview 8 Source: Internal analysis, Adamas, and Roskill
Slide 9: The supply chain demands a Western Hemisphere Supplier
The supply chain demands a Western Hemisphere Supplier Scaled Rare Earth Oxide Producer NdPr Magnet Producer MP Materials Business Overview 9
Slide 10: Stage I – Complete Rare Earth Concentrate Production
37,839 Stage I – Complete Rare Earth Concentrate 3.2x REO Production • Profitably mining, milling, and executing on optimized flotation process • Currently producing approximately 15% of global rare earth content ~12,000 • Annual production is ~3.2x that of predecessor • Substantial improvements in
Slide 11: Stage II – In Process Separated Rare Earth Oxides
Stage II – In Process Selective Separated Rare rejection of cerium Earth Oxides 3.6x NdPr • Optimization project adds back roasting into the refining process, which previously drove decades of success at Mountain Pass • Roasting leverages the inherent benefits of the ore body, significantly lowering
Slide 12: Mountain Pass operates with a best-in-class cost structure
Mountain Pass CRU 2025 operational ordered cost curve ($/kg REO) for major producers (real 2020$) operates with a best-in-class cost structure • High quality and consistent ore body • State of the art $1.7B integrated facility • World-class operations • Co-located operations near major US ports Sour
Slide 13: Strategy to become a fully-integrated market champion
MP has a strategy to become a fully-integrated market champion Stage II Stage III Stage I 2022 2025+ Complete Mining Refining Metal Making Magnet End Products Processing Separation Alloying Making Business Overview 13
Slide 14: Environmental Impact
Environmental Impact
Slide 15: We play a key role in the sustainable mobility ecosystem
We play a key role in the sustainable mobility ecosystem Environmental Impact 15 Source: Morgan Stanley: Cars and Climate
Slide 16: NdPr powers the sustainability revolution
109.8k NdPr powers the sustainability Includes xEV, Wind Turbine, and other revolution—more e-Mobility demand All other demand than 2/3rds of 72.9k demand will come 42.1k from carbon- reduction technologies 14.5k 2019A 2030E NdPr Demand (Metric tons) Environmental Impact 16 Source: CRU Group and Int
Slide 17: Sustainable products sustainably mined
Sustainable 2 products 3 sustainably mined 4 1. Clean Mine – Bastnaesite ore with no radioactive waste disposal issues 1 2. Mill – Recycles water from the paste tailings facility 3. Dry Tailings – Unique in the industry; avoids the need for tailings dams 4. Combined Heat and Power Plant / Chlor-Alka
Slide 18: The only NdPr producer that can satisfy sustainable supply chains
Other Major We are the only Global Peers Sourced primarily from bastnaesite ore with NdPr producer that low levels of naturally-occurring radioactive elements /× can satisfy the need for fully Closed-loop flotation process water recycling × Single-site integrated operation enabling safe sustain
Slide 19: Q3 Results Overview
Q3 Results Overview
Slide 20: Significant Revenue and Adj. EBITDA growth
+76% YoY $92.1M Significant 2019 2020 Revenue and $24.6M Adj. EBITDA growth +52% YoY $52.4M $41.0M +159% YoY $11.6M • Q3 Revenue: $41.0M $26.9M • Q3 Adj. EBITDA1: $11.6M $4.5M • Q3 Adj. EBITDA margin2: 36.1% ($2.6M) Q3 YTD Q3 YTD 9/30 9/30 Revenue Adjusted EBITDA Q3 2020 Results Overview 20 1. See A
Slide 21: Continued operational execution
9,852 10,297 $3,393 9,429 $3,093 Continued 8,561 $2,967 8,321 $2,389 $2,544 operational execution Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Sold Volumes (mT REO) Realized Price1 ($/mT REO) 10,197 $1,695 $1,602 $1,412 $1,389 9,682 $1,300 • Sold volumes: 9,429 mT
Slide 22: MP Materials' Mission is to restore the full rare earth supply chain
MP Materials’ Mission is to restore the full rare earth supply chain to the United States RESOURCE CAPITAL ALIGNMENT EXPERTISE MP Materials has the With nearly $2B of capital MP Materials is led by owner- Our engineering and operations preeminent rare earth ore body invested in state-of-the-art oper
Slide 23: Appendix
Xd MP maeteriacs Appendix
Slide 24: Summary P&L
Summary P&L MP MINE OPERATIONS LLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three months ended Nine months ended (Unaudited) September 30, September 30, 2020 2019 2020 2019 (in thousands) Product Sales (including sales to related parties) $ 41,022 $ 26,916 $ 92,132 $ 52,363 Operating costs an
Slide 25: Reconciliation Adjusted EBITDA to Net Income
Reconciliation Adjusted EBITDA to Net Income MP MINE OPERATIONS LLC RECONCILIATION OF NET INCOME/(LOSS) TO ADJUSTED EBITDA (Unaudited) Three months ended Six months ended Nine months ended September 30, June 30, September 30, 2020 2019 2020 2019 2020 2019 (in thousands) Net Income/(Loss) $ 14,627 $
Slide 26: KPIs GAAP Reconciliations
KPIs GAAP Reconciliations MP MINE OPERATIONS LLC RECONCILIATION OF REALIZED PRICE TO PRODUCT SALES (GAAP) Note: Numbers may not sum due to rounding (Unaudited) Shenghe REO Sales Realized Price Total Realized Product Sales Other (2) Im plied Volum e per REO MT Price (1) (GAAP) Discount (3) Three m on