Latest news with #MPMaterialsCorp
Globe and Mail
31-07-2025
- Business
- Globe and Mail
MP Materials' High Costs Warrant Caution: Can It Protect Margins?
MP Materials Corp. MP has experienced a significant jump in its costs of sales since the past year. In 2024, MP's cost of sales nearly doubled to $192.6 million from $92.7 million in 2023. Costs accounted for approximately 94% of revenues in 2024, a sharp rise compared with 37% in 2023, attributed to the elevated production costs due to the initial ramp of production of separated products. Due to the start of Stage II production, the upward trend in costs began in the first quarter of 2024 and persisted throughout the year. This trend continued in the first quarter of 2025, with the cost of sales rising 37% year over year to $48 million, or 80% of revenues. In the first quarter of 2025, the cost of sales was primarily impacted by higher production costs related to a higher mix of refined product sales compared with the prior year. Separated product production costs are presently elevated on a per-unit basis, given the currently low utilization of the refining facilities as the company ramps up to normalized production levels. Despite higher revenues in the quarter, elevated production costs led to a loss of 12 cents per share for Material Processing in the first quarter, wider than the year-ago quarter's loss of four cents. The company's decision to increase production of separated rare earth products at Mountain Pass is expected to result in higher costs in 2025, given that these products are more expensive to produce than rare earth concentrates. Additionally, the ongoing ramp-up in the output of magnetic precursor materials will further contribute to elevated production expenses. A Quick Look at Cost Trends of Peers Energy Fuels UUUU recently commenced the production of heavy rare earth element oxides at its White Mesa Mill at pilot scale and is expected to produce separated heavy rare earth oxides on a commercial scale as early as the fourth quarter of 2026. Energy Fuels witnessed a 64% surge in its cost of sales to $18 million in the first quarter of 2025 due to higher costs related to the mining of lower-grade Heavy Mineral Sand (HMS) products at the end of the Kwale mine life, which was completed as of Dec. 31, 2024. Energy Fuels had not incurred costs applicable to rare earth elements in the quarter. In fiscal 2024, Energy Fuels saw a 208% increase in costs to $55.9 million due to costs applicable to HMS as well as higher uranium purchases. Costs represented 72% of revenues in 2024 and 107% of revenues in the first quarter of 2025. Idaho Strategic Resources IDR is a gold producer and critical minerals/rare earth element exploration company. Idaho Strategic Resources saw a 34% increase in cost of sales and other direct production costs to $3 million, or 42% of revenues, in the first quarter of 2025. Idaho Strategic's costs moved up 32% to $10.86 million in 2024 and were 42% of revenues. MP's Price Performance, Valuation & Estimates MP Materials shares have skyrocketed 290.1% so far this year compared with the industry 's 16.1% growth. MP is trading at a forward 12-month price/sales multiple of 23.28X, a significant premium to the industry's 1.24X. It has a Value Score of F. The Zacks Consensus Estimate for MP Materials' 2025 earnings is pegged at a loss of 43 cents per share. However, the bottom-line estimate for 2026 is pegged at earnings of 71 cents per share, indicating a solid improvement. The estimates for both 2025 and 2026 have moved up in the past 60 days, as shown below. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. One Big Gain, Every Trading Day To help you take full advantage of this market, you're invited to access every stock recommendation in all our private portfolios - for just $1. Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That's about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%. Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MP Materials Corp. (MP): Free Stock Analysis Report Energy Fuels Inc (UUUU): Free Stock Analysis Report
Yahoo
15-07-2025
- Business
- Yahoo
MP Materials stock soars after $500 million rare earths deal with Apple
US-based rare earth materials miner MP Materials Corp. (MP) saw its stock soar more than 25% Tuesday after announcing a deal with Apple (AAPL). Apple on Tuesday said that it had committed to a $500 million multiyear deal with MP Materials to buy its rare earth magnets for the tech giant's products. The iPhone maker said the deal was part of its effort to build out its US supply chain. Apple has committed to spending over $500 billion in the US to help expand its domestic manufacturing capacity. Rare earth magnets are used in everything from consumer electronics to electric vehicles and defense systems. 'Rare earth materials are essential for making advanced technology, and this partnership will help strengthen the supply of these vital materials here in the United States," Apple CEO Tim Cook said Tuesday. 'We couldn't be more excited about the future of American manufacturing, and we will continue to invest in the ingenuity, creativity, and innovative spirit of the American people.' Apple has come under pressure over the past several months from President Trump, who has threatened the company with 25% tariffs on its overseas-made iPhones if the company doesn't move production to the US. Apple stock rose around 1% in midday trading. Shares of the company are down more than 16% in 2025, with the stock lagging its so-called Magnificent Seven Big Tech peers during a rough start to the year. The iPhone maker has dealt with the fallout from Trump's trade war and a DOJ antitrust probe just as it has fallen behind on AI. Meanwhile, MP Materials, which went public in 2020, has gained 291% in 2025 and is up roughly 100% over the past month alone. Shares of the rare earths producer soared following an investment from the US Department of Defense last week. The company said on July 10 that the Defense Department would purchase $400 million of its preferred shares to become its largest shareholder, as the US looks to build out its domestic rare earth magnet supply chain. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-06-2025
- Business
- Yahoo
MP Materials (MP) Rallies 23.5% W/W on Rosy Prospects
MP Materials Corp. (NYSE:MP) is one of the . MP Materials surged by 23.5 percent week-on-week, ending Friday's trading at $37.74 versus the $30.55 apiece on June 13, as investor sentiment was buoyed by growth opportunities expectations amid the limited supply of rare earth minerals globally. In recent weeks, rare earths took center stage amid calls from automakers and semiconductor companies for China to loosen up rare earth exports, saying that it has significantly impacted production operations. Despite China's promise to ease up, experts feared that global supply cuts would continue to be an ever-present threat. MP Materials Corp. (NYSE:MP), on the other hand, could take advantage of the limited global supply, as industries look to other suppliers to support production operations. Heavy machinery at work in a mining facility, excavating the earth for rare earth minerals. MP Materials Corp. (NYSE:MP) is the only rare earths mining company in the US. During the peak of the US and China's trade war earlier this year, the company halted shipping operations to China to avoid hefty tariffs on its goods. While we acknowledge the potential of MP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-06-2025
- Business
- Yahoo
MP Materials (MP) Rallies 23.5% W/W on Rosy Prospects
MP Materials Corp. (NYSE:MP) is one of the . MP Materials surged by 23.5 percent week-on-week, ending Friday's trading at $37.74 versus the $30.55 apiece on June 13, as investor sentiment was buoyed by growth opportunities expectations amid the limited supply of rare earth minerals globally. In recent weeks, rare earths took center stage amid calls from automakers and semiconductor companies for China to loosen up rare earth exports, saying that it has significantly impacted production operations. Despite China's promise to ease up, experts feared that global supply cuts would continue to be an ever-present threat. MP Materials Corp. (NYSE:MP), on the other hand, could take advantage of the limited global supply, as industries look to other suppliers to support production operations. Heavy machinery at work in a mining facility, excavating the earth for rare earth minerals. MP Materials Corp. (NYSE:MP) is the only rare earths mining company in the US. During the peak of the US and China's trade war earlier this year, the company halted shipping operations to China to avoid hefty tariffs on its goods. While we acknowledge the potential of MP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
17-06-2025
- Business
- Yahoo
MP Materials (MP) Rallies 13.4% on Rare Earths Deal
MP Materials Corp. (NYSE:MP) is one of the . MP Materials rose for a third day on Monday, jumping 13.42 percent to end at $34.65 apiece as investor sentiment was boosted by the United States and China's progress on rare earths mineral exports. Last week, the US and China engaged in a three-day trade negotiation in London that was said to have focused on rare earths negotiations. Under the agreement, China will loosen restrictions on rare earths, allowing companies to supply magnets and elements to US firms. MP Materials Corp. (NYSE:MP)—the only rare earth producer in the US, also benefitted from the trade talks progress given its heavy reliance on Chinese companies in the refinery of elements. Heavy machinery at work in a mining facility, excavating the earth for rare earth minerals. It can be learned that MP Materials Corp. (NYSE:MP) stopped shipping mines to China for processing after the Chinese government previously slapped a 125-percent tariff on US imports. While we acknowledge the potential of MP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
