Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

MP Materials profit more than doubles on higher rare earths prices

Stock Markets Aug 04, 2022 04:41PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A view of the MP Materials rare earth open-pit mine in Mountain Pass, California, U.S. January 30, 2020. REUTERS/Steve Marcus/File Photo

(Reuters) -Rare earths miner MP Materials Inc reported a better-than-expected quarterly profit on Thursday due to rising demand and prices for the materials used to make electric vehicles and a range of consumer goods.

The Las Vegas-based company posted second-quarter net income of $73.3 million, or 38 cents per share, compared to $27.2 million, or 15 cents per share, in the year-ago quarter.

Excluding stock-based compensation expenses and other one-time items, MP earned 43 cents per share. By that measure, analysts expected earnings of 33 cents per share, according to IBES data from Refinitiv.

Rare earths are a grouping of 17 metals used to make magnets found in motors that turn electricity into motion. China is the world's largest producer and consumer of rare earths and rare earth magnets.

MP processes rock that it extracts from its Mountain Pass mine in California into rare earth oxides. The company produced 10,300 tonnes of those oxides during the quarter, nearly even to the year-ago period.

Those oxides are sent to China https://www.reuters.com/article/us-usa-rareearths-insight-idUKKCN2241KF where they are further processed into neodymium and other rare earth metals, which are used to make magnets for a range of electronics. There are no U.S.-based options for this final round of rare earths processing.

The price MP received per tonne for its oxides rose more than 90% to $13,918 per tonne amid rising demand, especially from the EV industry.

The company said it hopes to be able to process its own metals in California by the end of the year and that a facility under construction in Texas to build rare earth magnets https://www.yahoo.com/video/general-motors-sets-rare-earth-144916877.html for General Motors Co (NYSE:GM) "is rapidly taking shape."

Shares rose slightly to $35.36 in after-hours trading.

MP's executives plan to host a quarterly conference call on Thursday afternoon to discuss the results.

MP Materials profit more than doubles on higher rare earths prices
 

Related Articles

Meme stock Bed Bath & Beyond's rally rages on
Meme stock Bed Bath & Beyond's rally rages on By Reuters - Aug 16, 2022

(Reuters) - Shares of Bed Bath & Beyond Inc (NASDAQ:BBBY) surged 60% to a near five-month high in volatile trading on Tuesday, as retail investors continued to drive up the...

Baidu Says They are a 'Generation Ahead’ of Tesla
Baidu Says They are a 'Generation Ahead’ of Tesla By Investing.com - Aug 16, 2022 3

By Michael Elkins Robin Li, co-founder, and executive chairman of Baidu (NASDAQ:BIDU), a Chinese technology company, recently made a statement saying that his company’s technology...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email