Latest news with #MountainPass
Yahoo
4 days ago
- Business
- Yahoo
MP Materials posts smaller loss as rare earths production surges
(Reuters) -MP Materials posted a smaller-than-expected second-quarter loss Thursday, as the U.S. rare earths miner benefited from higher production amid booming demand, sending its shares up nearly 8% after the bell. The company - which operates the only U.S. rare earths mine in Mountain Pass, California - has been in the spotlight as President Donald Trump's administration ramps up efforts to build out a domestic supply to reduce dependence on China. MP Materials said rare earths concentrate production at the mine increased nearly 45% to 13,145 metric tons, while production for neodymium and praseodymium (NdPr) — the two most in-demand rare earths — jumped nearly 120% to 597 metric tons in the second quarter ended June 30. Rare earths refer to a group of 17 metals used to make magnets that turn power into motion, including the devices that make cellphones vibrate. They are also widely used to make weapons, electric vehicles and other electronics. Last month, the company signed a multibillion-dollar deal with the U.S. government to boost output of rare earth magnets, which are used to build weapons, electric vehicles and many electronics. The deal, which would make the Pentagon the company's biggest shareholder, was followed by a $500 million deal with Apple for the supply of rare earth magnets to the iPhone maker. The drive to boost the domestic supply chain has powered a more than four-fold increase in the company's stock so far this year. The DoD, under the deal, will guarantee a floor price of $110 per kilogram for the two most-popular rare earths, a price nearly twice the current Chinese market level. The price floor is one that had long been sought by U.S. critical minerals companies who have complained about China's market manipulations. The Las Vegas-based company posted an adjusted loss of 13 cents per share, compared with analysts' expectations of 19 cents loss per share, according to data compiled by LSEG. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
MP Materials quarterly loss smaller than expected on higher rare earths production
(Reuters) -MP Materials posted a smaller-than-expected second-quarter loss Thursday, as the U.S. rare earths miner benefited from higher production amid rising demand. Its shares jumped over 12% in trading after the bell. The stock has gained nearly 356% so far this year to last close. The company - which operates the only U.S. rare earths mine in Mountain Pass, California - has been in the spotlight as President Donald Trump's administration ramps up efforts to build out a domestic supply to reduce dependence on China. Last month, the company signed a multibillion-dollar deal with the U.S. government to boost output of rare earth magnets, which are widely used to build weapons, electric vehicles and many electronics. The deal, which would make the Pentagon the company's biggest shareholder, was followed by a $500 million deal with Apple for the supply of rare earth magnets to the iPhone maker. Production for neodymium and praseodymium (NdPr) — the two most in-demand rare earths — increased 119% to 597 metric tons in the second quarter ended June 30. The Las Vegas-based company posted an adjusted loss of 13 cents per share, compared with analysts' expectations of 19 cents loss per share, according to data compiled by LSEG. Sign in to access your portfolio
South China Morning Post
6 days ago
- Business
- South China Morning Post
For the US, it's Mountain Pass – or fail – in bid to supplant China's rare earth supremacy
Rare earths are needed for everything from consumer electronics to electric vehicles, wind turbines and fighter jets – and China controls the supply chain. In the second of a four-part series, we look at how China gradually took a commanding role in the rare earth industry, and how the US is now working to strengthen its sources and production. Advertisement Nearly a half-century removed from being the world's dominant supplier of rare earth elements, California's Mountain Pass mine is once again being tasked with unearthing a veritable treasure trove of metals and minerals that the United States hopes will help bridge a supply gulf with China in an increasingly critical industry. Splashing out hundreds of millions of dollars, the US Department of Defence is digging deep into the public coffers to bring back the mine, which has had a rocky history. After being shut down in 2002 due to environmental concerns, Mountain Pass was reawakened during the early days of former president Barack Obama's administration when the privately held Molycorp Minerals was formed to revive it. It was an ambitious undertaking, with approximately US$1.5 billion invested to reinstate production and give the US a competitive boost in the rare earth supply chain. But the effort ground to a halt in 2015 when the company went bankrupt. Advertisement In the decade since, Washington has slowly woken up to the reality of Beijing's chokehold on rare earths and watched as that dominant position has become China's biggest bargaining chip in the two sides' protracted trade war. The administration of US President Donald Trump has tried, with increased urgency, to get to the core of the problem by accelerating attempts to reduce America's deep reliance on China for the raw materials that are used in everything from military weapons and semiconductors to electric vehicles and wind turbines.
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
Daily Mail
11-07-2025
- Business
- Daily Mail
Pentagon sparks WW3 fears after their latest seismic weapons grab
By The Pentagon has sparked fears of an upcoming World War after it bought $400million in rare earth materials stock that are key to military weapons. The purchase means the Defense Department will now be the largest shareholder in MP Materials, America's only operational rare earths mine in Mountain Pass, California. Rare earths are a group of 17 metals used to make magnets that turn power into motion. They are used in magnets that are key to building various military weapons like the F-35 warplane, drones and submarines. The US government's move is the biggest yet as the country looks to push back against China 's weaponization of rare earth stocks, as noted by Bloomberg. The US has until now been reliant on China for them, something the Asian nation used to its advantage during the trade war with Washington. China halted exports in March as part of a trade spat with US President Donald Trump that showed some signs of easing late last month, even as the broader tensions underscored the need for greater US output. The US government hopes the deal boosts output of rare earth magnets and helps loosen China's grip on the materials used to build weapons, electric vehicles and many electronics. The profits from the mine will be used to expand its processing capacity, according to MP Materials. MP will also build a new factory for rare earth magnets, lifting the company's output to 10,000 metric tons a year, with the new factory launching in 2028. 'This is a game changer for the ex-China industry and a much-needed surge in magnet production capacity,' Ryan Castilloux, managing director of consultancy Adamas Intelligence, told Reuters. The deal, which sent MP's shares up nearly 50 percent, makes the company Washington's most high-profile investment to date in the critical minerals sector. The Pentagon said it will guarantee a floor price of $110 per kilogram for the two most-popular rare earths, a price nearly twice the current Chinese market level, which has languished at low levels and has long deterred investment. MP received an average of $52 per kilogram for those same rare earths in the second quarter. The price floor especially is one that had long been sought by US critical minerals companies who have complained about China's market manipulations. Past owners of MP's California mine, for example, went bankrupt in part due to Chinese competition. In a Thursday regulatory filing, MP said that the DoD was funding the investment in part through a Cold War-era piece of legislation known as the Defense Production Act, and that it could not guarantee the US Congress would continue to fund the agreement in perpetuity. MP is investing $600 million of its own funds into the expansion projects. The company said it would construct a second magnet manufacturing facility in the US to compliment one under development in Texas.
