MP Materials has seen a +11% jump after posting top and bottom line beats in Q3 driven by an increase in the realized price of rare earth oxide.
Revenue was up 25% Y/Y to $124.4M, beating estimates $6.73M and driven by sales volumes of nearly 10,700 metric tons of rare earth oxides.
The company began commissioning our Stage II assets at Mountain Pass and has starting test operations in several circuits, beginning with concentrate drying and roasting despite what it called the "most challenging real operating economic environment".
Production volumes slipped 9% Y/Y to 10,886 metric tons, although it was about in line with Q1’s production output as guided in the previous quarter. MP also attributed the decline to a strong comparable period last year, when it record mineral recoveries and extremely high up times.
With planned operational shutdowns completed in October, MP expects a sequential decrease in production in Q4 as well, more in line with Q2 output.
MP did flag a decline in NdPr prices Q/Q due to COVID-19 lockdowns in China and global economic headwinds. Despite that decline and a stronger dollar, average prices were up materially Y/Y highlighting continued strong demand for NdPr.
Nevertheless, higher revenues led to a 34% Y/Y increase in adjusted EBITDA to $91.4M and 38% higher adjusted EPS of $0.36, beating the analyst consensus of $0.30.
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MP Materials jumps 12% on Q3 earnings and revenue beat