Slide 1: Business Overview & Third Quarter 2020 Results
Business Overview & Third Quarter 2020 Results November 24, 2020 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 are 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: MP has a 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 10
Slide 11: Stage I Rare Earth Concentrate Production
37,839 Stage I 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 throughput,
Slide 12: Stage II Separated Rare Earth Oxides
Stage II 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 ~20,000 mT c
Slide 13: Stage III Downstream Expansion
Stage III 252kt >2x capacity Downstream Consumer Electronics and Other Expansion Industrial (incl. Automation) • Opportunity to create only scaled, fully-integrated Western Hemisphere supplier Wind Turbines of rare earth magnetics via a “buy, build and/or JV” strategy 120kt Other Automotive • EVs an
Slide 14: Q3 Results Overview
Q3 Results Overview
Slide 15: 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 15 1. See A
Slide 16: 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 17: Fully-funded with a fortress balance sheet
Fully-funded with a fortress In millions, except shares and per share data Pro Forma Shares Outstanding at Closing of Business Combination 147,295,694 balance sheet Add: Potential vesting of all Fortress promote shares 8,625,000 Add: TSM for outstanding warrants at $16.75/share 3,604,478 Pro Forma F
Slide 18: Stage II Update
• The Stage II Project remains on track for 2022 Stage II • Front-end engineering design (FEED) is complete Update • All circuit designs are complete • Long-lead procurement expected to be complete by December 2020 • Initial civil mobilization expected first week of December 2020 and full mobilizati
Slide 19: MP Materials' Mission is to restore the full rare earth supply chain to the United States
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 20: Appendix
Xd MP materiacs Appendix
Slide 21: 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 22: 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 23: 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
Slide 24: KPIs GAAP Reconciliations
KPIs GAAP Reconciliations MP MINE OPERATIONS LLC RECONCILIATION OF NON-GAAP PRODUCTION COST TO COST OF SALES Three months ended: (Unaudited) September 30, December 31, March 31, June 30, September 30, 2019 2019 2020 2020 2020 Cost of sales - as reported $ 19,645 $ 16,228 $ 12,668 $ 16,864 $ 15,425 A