MP Materials Corp. (NYSE:MP) Q3 2023 Earnings Conference Call November 2, 2023 5:00 PM ET

Company Participants

Martin Sheehan - Head, Investor Relations

Jim Litinsky - Founder, Chairman and Chief Executive Officer

Michael Rosenthal - Founder and Chief Operating Officer

Ryan Corbett - Chief Financial Officer

Conference Call Participants

Matt Summerville - D.A. Davidson

Laurence Alexander - Jefferies

Carlos De Alba - Morgan Stanley

George Gianarikas - Canaccord Genuity

Corinne Blanchard - Deutsche Bank

Bill Peterson - JPMorgan

Lawson Winder - Bank of America

David Deckelbaum - TD Cowen

Operator

Good afternoon and thank you for attending the MP Materials Third Quarter 2023 Earnings Call and Webcast. [Operator Instructions] I would now like to pass the conference over to your host, Head of Investor Relations, Martin Sheehan. Please go ahead.

Martin Sheehan

Thank you, operator and good afternoon everyone. Welcome to the MP Materials’ third quarter 2023 earnings conference 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.

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 today’s earnings release and the appendix to today’s slide presentation. 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 will turn the call over to Jim. Jim?

Jim Litinsky

Thanks, Martin and thank you all for joining us today. Let me give you a brief overview of today’s call. To begin, I will discuss the third quarter and recent highlights. Ryan will then run through the financials and KPIs, followed by Michael, who will review operational progress. I will then provide some closing commentary before Q&A.

So, let’s begin on Slide 4. I am going to start in the middle of the slide with our midstream business. We produced 50 metric tons of on-spec end-to-end commenced shipments. Producing at scale is a massive achievement. Let’s put that amount of production in context for a moment. 50 metric tons of NdPr as feedstock can make approximately 100 metric tons of neo magnets, which would power over 100,000 or so EV traction motors. In the U.S. sales of EVs are averaging a little over 100,000 units per month. So being in just the early innings of our production ramp, we are clearly already doing amounts that are significant from an economic security perspective but also with a very long runway for domestic and global growth. We expect to produce multiples of our Q3 output of NdPr in the fourth quarter and expect further step change improvements in 2024. Michael and the team are maniacally focused on improving reliability, increasing throughput and maintaining our low-cost position. They are making great strides. Michael will expand on this later in the call.