MP Materials Corporation (NYSE:MP) Q2 2022 Results Conference Call August 4, 2022 5:00 PM ET

Company Participants

Martin Sheehan - Head, IR

Jim Litinsky - Founder, Chairman & CEO

Ryan Corbett - CFO

Conference Call Participants

Matt Summerville - D.A. Davidson

Robin Fiedler - BMO

George Gianarikas - Canaccord Genuity

Ben Kallo - Baird

Corinne Blanchard - Deutsche Bank

Lawson Winder - Bank of America

Abhishek Sinha - Northland

Operator

Good afternoon, and thank you for attending today’s MP Materials Second Quarter 2022 Earnings Conference Call. My name is Austin, and I’ll be your moderator for today. [Operator Instructions]

I would now like to pass the conference over to your host, Martin Sheehan with MP Materials. Martin, please proceed.

Martin Sheehan

Thank you, operator, and good day, everyone. Welcome to MP Materials' second quarter 2022 earnings call. With me today from MP Materials are Jim Litinsky, Founder, Chairman and Chief Executive Officer; Michael Rosenthal, Founder and Chief Operating Officer; and Ryan Corbett, Chief Financial Officer.

Before we get to our opening remarks, as a reminder, today’s discussion will contain forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats. Factors that may cause the company’s actual results to differ materially from these statements are included in today’s presentation, earnings release, and in our SEC filings.

In addition, we have included some non-GAAP financial measures in this presentation, reconciliations to the most directly comparable GAAP financial measures can be found in the appendix to today's presentation and earnings release. Any reference in our discussion today to EBITDA means adjusted EBITDA. Finally, the earnings release and slide presentation are available on our website.

With that, I'll turn the call over to Jim. Jim?

Jim Litinsky

Thanks, Martin. And thank you all for joining us this afternoon. Let me start by giving you a quick rundown on our plan for today's call. First, I will open with the highlights of the quarter, followed by Ryan's review of our financials and KPIs, and then I'll return to update you on stages 2 and 3 progress and address some highlights from our just published and inaugural ESG report before opening the call up to Q&A.

So let's get started on Slide 4. Our second quarter results continue to demonstrate solid execution. In the quarter, we produced 10,300 metric tons and sold 10,000 metric tons of REO in concentrate. Both figures are consistent with last year's second quarter. Given the significant increase in construction on site, investment in maximizing the long-term value of the mineral resource, as well as planning and coordinating for Stage 2 commissioning, we are really pleased with the team's ability to focus and deliver on hitting world class production and shipping targets. Similar to last quarter, we executed well throughout the quarter, maintaining cost discipline and benefited from record realized prices. This resulted in another quarter of solid financial performance. Revenue was up 96% year-over-year to $143.6 million. Adjusted EBITDA was up 137% to $110 million.