MP - MP Materials jumps after easy Q4 beat; full-year rare-earths output hits record

MP Materials ( NYSE: MP ) +4.5% pre-market Friday after easily beating analyst expectations for Q4 adjusted earnings and revenues.

Q4 net income increased to $67M, or $0.36/share, from $49M, or $0.26/share, in the year-earlier quarter.

Q4 revenues fell 6% Y/Y to $93.2M, as a 12% increase in sales volumes was more than offset by a 16% decline in realized sales prices of REO in concentrate.

Q4 adjusted EBITDA fell 23% Y/Y, as production cost of $1,928/metric ton of REO jumped 26% mainly due to the timing of maintenance, higher fuel costs, and higher payroll costs including an increase in employee headcount.

For FY 2022, net income more than doubled to $289M from the previous year and total revenues rose 59% Y/Y to $527.5M.

The company said it produced a record 42.5K metric tons of rare-earth oxides in concentrate in 2022, and is working on expanding capabilities at its Mountain Pass mine in California to further boost production.

Earlier this week, MP Materials ( MP ) announced a partnership with Sumitomo , making the Japanese trading house the exclusive distributor in Japan of the miner's neodymium-praseodymium oxide, a key element in the production of electric vehicle motors and wind turbines.

MP Materials ( MP ) shares have gained 31% so far this year but lost 22% during the past 12 months .

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