Latest news with #ex-China
Yahoo
2 days ago
- Business
- Yahoo
MP Materials (NYSE:MP) Reports Q1 Net Loss Despite Increase In REO Production
MP Materials recently signed a Memorandum of Understanding with the Saudi Arabian Mining Company to develop a rare earth supply chain in Saudi Arabia, aligning with growing global demands. Despite reporting a net loss for the first quarter, the company increased its REO and NdPr production volumes. Additionally, no shares were repurchased in the recent buyback tranche, reflecting existing efforts. Over the past week, the company's share price rose by 11%, notably outperforming the market's 2% gain. Enhanced production results and the promising alliance appear to add weight to this recent upward trend amidst broader market growth. We've discovered 1 weakness for MP Materials that you should be aware of before investing here. The end of cancer? These 23 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. The recent Memorandum of Understanding between MP Materials and the Saudi Arabian Mining Company could significantly influence MP's growth narrative. By developing a rare earth supply chain in Saudi Arabia, the company stands to expand its reach into ex-China markets, potentially increasing revenue opportunities and enhancing production efficiency. This collaboration may further bolster MP's position by integrating strategic partnerships, which aligns well with existing efforts to enhance production capacities. Over the longer term, MP Materials' total return, including share price and dividends, was 34.34% over the past year. This performance exceeds both the broader market's return and the US Metals and Mining industry, which had varying results over the same period. While the company's share price rose by 11% in the past week, outperforming the 2% market gain, its longer-term success underscores its enhanced capabilities in navigating volatile pricing and market demands. The recent partnership news might positively impact revenue and earnings forecasts, further pushing analyst expectations. Given the increased production capabilities and expanded market access through new agreements, analysts' anticipated revenue growth of 33.6% per year could see validation. The consensus price target of US$26.69, slightly higher than the current share price of US$24.58, suggests moderate upside potential, indicating that the market views the company's future prospects with cautious optimism. Nonetheless, the forecasted improvement in margins and earnings growth would be critical in achieving the price target, inviting investors to evaluate their assumptions against these predictions. Click to explore a detailed breakdown of our findings in MP Materials' financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:MP. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
MP Materials (NYSE:MP) Reports Q1 Net Loss Despite Increase In REO Production
MP Materials recently signed a Memorandum of Understanding with the Saudi Arabian Mining Company to develop a rare earth supply chain in Saudi Arabia, aligning with growing global demands. Despite reporting a net loss for the first quarter, the company increased its REO and NdPr production volumes. Additionally, no shares were repurchased in the recent buyback tranche, reflecting existing efforts. Over the past week, the company's share price rose by 11%, notably outperforming the market's 2% gain. Enhanced production results and the promising alliance appear to add weight to this recent upward trend amidst broader market growth. We've discovered 1 weakness for MP Materials that you should be aware of before investing here. The end of cancer? These 23 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. The recent Memorandum of Understanding between MP Materials and the Saudi Arabian Mining Company could significantly influence MP's growth narrative. By developing a rare earth supply chain in Saudi Arabia, the company stands to expand its reach into ex-China markets, potentially increasing revenue opportunities and enhancing production efficiency. This collaboration may further bolster MP's position by integrating strategic partnerships, which aligns well with existing efforts to enhance production capacities. Over the longer term, MP Materials' total return, including share price and dividends, was 34.34% over the past year. This performance exceeds both the broader market's return and the US Metals and Mining industry, which had varying results over the same period. While the company's share price rose by 11% in the past week, outperforming the 2% market gain, its longer-term success underscores its enhanced capabilities in navigating volatile pricing and market demands. The recent partnership news might positively impact revenue and earnings forecasts, further pushing analyst expectations. Given the increased production capabilities and expanded market access through new agreements, analysts' anticipated revenue growth of 33.6% per year could see validation. The consensus price target of US$26.69, slightly higher than the current share price of US$24.58, suggests moderate upside potential, indicating that the market views the company's future prospects with cautious optimism. Nonetheless, the forecasted improvement in margins and earnings growth would be critical in achieving the price target, inviting investors to evaluate their assumptions against these predictions. Click to explore a detailed breakdown of our findings in MP Materials' financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:MP. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
The Star
4 days ago
- Business
- The Star
Top Thai wind power firm to fund US$2bil spending by IPO
BANGKOK: Thailand's largest wind power producer plans to spend 65 billion baht (US$2 billion) to almost triple its generation capacity over the next 12 years, and will go public to fund the expansion. Wind Energy Holding Co. Ltd. is targeting 2,000 megawatts of domestic installed capacity by 2037, from the current 700 megawatts, Chief Executive Officer Nuttpasint Chet-Udomlap said in an interview in Bangkok. It's also exploring projects in the Philippines, he said. The closely held company will fund its growth with an initial public offering on the Thai exchange, although that's currently in limbo while it resolves a legal issue, according to Nuttpasint. Wind Energy Holding's net income and revenue both fell by more than a fifth in 2024. However, profit at the group level declined by just about 7% year-on-year with little change in sales, the company said in an emailed statement. The wind generator's expansion plan dovetails with the Thai government's goal of adding around 16,000 megawatts of renewable power capacity, including atomic energy, from 2026 to 2037. That would take clean power in Southeast Asia's No. 2 economy to more than a third of the total, up from 23% last year. "Our expertise and specialist in wind energy will boost our leverage in the coming bids for the new projects,' Nuttpasint said. Wind Energy has acquired land and secured vendors to prepare for the government's new auctions, he said. Nopporn Suppipat, who founded the company in 2006, won a ruling in the UK court in 2023 to recover more than $800 million over allegations he faced political pressure and was forced to sell his stock at a massive discount. Wind Energy has also had to go to a Thai court regarding its dividend payout in relation to those shares. The company will proceed with the IPO as soon as those disputes are settled, Nuttpasint said. He said he was closely following legal proceedings in Thailand, but had little knowledge about the progress of the court case in the UK. Outside of China, the wind industry has struggled in recent years due to rising costs for materials like steel and cement. Annual additions outside China fell to 36 gigawatts last year, the lowest since 2019. The sector may rebound in 2025, with ex-China installations expected to rise 44%, according to BloombergNEF. - Bloomberg
Business Times
4 days ago
- Business
- Business Times
Top Thai wind power firm to fund 65 billion baht of spending with IPO
[BANGKOK] Thailand's largest wind power producer plans to spend 65 billion baht (S$2.6 billion) to almost triple its generation capacity over the next 12 years, and will go public to fund the expansion. Wind Energy Holding is targeting 2,000 megawatts of domestic installed capacity by 2037, from the current 700 megawatts, chief executive officer Nuttpasint Chet-Udomlap said in an interview in Bangkok. It's also exploring projects in the Philippines, he said. The closely held company will fund its growth with an initial public offering (IPO) on the Thai exchange, although that's currently in limbo while it resolves a legal issue, according to Nuttpasint. Wind Energy's net income and revenue both fell by more than a fifth in 2024. The wind generator's expansion plan dovetails with the Thai government's goal of adding around 16,000 megawatts of renewable power capacity, including atomic energy, from 2026 to 2037. That would take clean power in South-east Asia's No 2 economy to more than a third of the total, up from 23 per cent last year. 'Our expertise and specialist in wind energy will boost our leverage in the coming bids for the new projects,' Nuttpasint said. Wind Energy has acquired land and secured vendors to prepare for the government's new auctions, he said. Nopporn Suppipat, who founded the company in 2006, won a ruling in the UK court in 2023 to recover more than US$800 million over allegations he faced political pressure and was forced to sell his stock at a massive discount. Wind Energy has also had to go to a Thai court regarding its dividend payout in relation to those shares. The company will proceed with the IPO as soon as those disputes are settled, Nuttpasint said. He said he was closely following legal proceedings in Thailand, but had little knowledge about the progress of the court case in the UK. Outside of China, the wind industry has struggled in recent years due to rising costs for materials such as steel and cement. Annual additions outside China fell to 36 gigawatts last year, the lowest since 2019. The sector may rebound in 2025, with ex-China installations expected to rise 44 per cent, according to BloombergNEF. BLOOMBERG
West Australian
5 days ago
- Automotive
- West Australian
The West is recycling rare earths to escape China's grip — but it's not enough
As China tightens its grip on the global supply of key minerals, the West is working to reduce its dependence on Chinese rare earths. This includes finding alternative sources of rare earth minerals, developing technologies to reduce reliance, and recovering existing stockpiles through recycling products that are reaching the end of their shelf life. 'You cannot build a modern car without rare earths,' said consulting firm AlixPartners, noting how Chinese companies have come to dominate the supply chain for the minerals. In September 2024, the US Department of Defense invested $US4.2 million ($6.5m) in Rare Earth Salts, a startup that aims to extract the oxides from domestic recycled products such as fluorescent light bulbs. Japan's Toyota has also been investing in technologies to reduce the use of rare earth elements. According to the US Geological Survey, China controlled 69 per cent of rare earth mine production in 2024, and nearly half of the world's reserves. Analysts from AlixPartners estimate that a typical single-motor battery electric vehicle includes around 550 grams (1.21 pounds) of components containing rare earths, unlike gasoline-powered cars, which only use 140 grams of rare earths, or about 5 ounces. More than half of the new passenger cars sold in China are battery-only and hybrid-powered cars, unlike the U.S., where they are still mostly gasoline-powered. 'With slowing EV uptake (in the U.S.) and mandates to convert from ICE to EV formats receding into the future, the imperative for replacing Chinese-sourced materials in EVs is declining,' said Christopher Ecclestone, principal and mining strategist at Hallgarten & Company. 'Pretty soon, the first generation of EVs will be up for recycling themselves, creating a pool of ex-China material that will be under the control of the West,' he said. Only 7.5 per cent of new US vehicle sales in the first quarter were electric, a modest increase from a year ago, according to Cox Automotive. It pointed out that around two-thirds of EVs sold in the U.S. last year were assembled locally, but manufacturers still rely on imports for the parts. 'The current, full-blown trade war with China, the world's leading supplier of EV battery materials, will distort the market even more.' Of the 1.7 kilograms (3.74 pounds) of components containing rare earths found in a typical single-motor battery electric car, 550 grams (1.2 pounds) are rare earths. About the same amount, 510 grams, is used in hybrid-powered vehicles using lithium-ion batteries. In early April, China announced export controls on seven rare earths. Those restrictions included terbium, 9 grams of which is typically used in a single-motor EV, AlixPartners data showed. None of the six other targeted rare earths are significantly used in cars, according to the data. But April's list is not the only one. A separate Chinese list of metal controls that took effect in December restricts exports of cerium, 50 grams of which AlixPartners said is used on average in a single-motor EV. The controls mean that Chinese companies handling the minerals must get government approval to sell them overseas. Caixin, a Chinese business news outlet, reported on May 15, just days after a US-China trade truce, that three leading Chinese rare earth magnet companies have received export licenses from the commerce ministry to ship to North America and Europe. What's concerning for international business is that there are barely any alternatives to China for obtaining the rare earths. Mines can take years to get operating approval, while processing plants also take time and expertise to establish. 'Today, China controls over 90 per cent of the global refined supply for the four magnet rare earth elements (Nd, Pr, Dy, Tb), which are used to make permanent magnets for EV motors,' the International Energy Agency said in a statement. That refers to neodymium, praseodymium, dysprosium and terbium. For the less commonly used nickel metal hydride batteries in hybrid cars, the amount of rare earths goes up to 4.45 kilograms, or nearly 10 pounds, according to AlixPartners. That's largely because that kind of battery uses 3.5 kilograms of lanthanum. 'I estimate that around 70 per cent of the over 200 kilograms of minerals in an EV goes through China, but it varies by vehicle and manufacturer. It's hard to put a definitive figure on it,' said Henry Sanderson, associate fellow at The Royal United Services Institute for Defence and Security. However, there are limits to recycling, which remains challenging, energy-intensive and time-consuming. And even if adoption of EVs in the U.S. slows, the minerals are used in far larger quantities in defence. For example, the F-35 fighter jet contains over 900 pounds of rare earths, according to the Center for Strategic and International Studies, based in Washington, DC. China's rare earths restrictions also go beyond the closely watched list released on April 4. In the last two years, China has increased its control over a broader category of metals known as critical minerals. In the summer of 2023, China said it would restrict exports of gallium and germanium, both used in chipmaking. About a year later, it announced restrictions on antimony, used to strengthen other metals and a significant component in bullets, nuclear weapons production and lead-acid batteries. The State Council, the country's top executive body, in October released an entire policy for strengthening controls of exports, including minerals, that might have dual-use properties, or be used for military and civilian purposes. One restriction that caught many in the industry by surprise was on tungsten, a US-designated critical mineral but not a rare earth. The extremely hard metal is used in weapons, cutting tools, semiconductors and car batteries. China produced about 80 per cent of the global tungsten supply in 2024, and the U.S. imports 27% of tungsten from China, data from the U.S. Geological Survey showed. About 2 kilograms of tungsten is typically used in each electric car battery, said Michael Dornhofer, founder of metals consulting firm Independent Supply Business Partner. He pointed out that this tungsten is not able to return to the recycling chain for at least seven years, and its low levels of use might not even make it reusable. '50 per cent of the world's tungsten is consumed by China, so they have business as usual,' Lewis Black, CEO of tungsten mining company Almonty, said in an interview last month. 'It's the other 40 per cent that's produced (in China) that comes into the West that doesn't exist.' He said when the company's forthcoming tungsten mine in South Korea reopens this year, it would mean there would be enough non-China supply of the metal to satisfy US, Europe and South Korean needs for defence. But for autos, medical and aerospace, 'we just don't have enough.'
