MP Materials Corp. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company, the largest producer of rare earth materials in the Western Hemisphere, experienced a total revenue of $62.9 million for the three months ended September 30, 2024, marking a 20% increase from $52.5 million in the same period of 2023. However, for the nine months ended September 30, 2024, total revenue decreased by 33% to $142.9 million, down from $212.2 million in the prior year.

The revenue from rare earth concentrate for the third quarter of 2024 was $43.1 million, an 18% decline from $52.5 million in 2023. This decline was attributed to a 23% drop in the realized price per REO metric ton, despite a 6% increase in REO sales volume. For the nine-month period, rare earth concentrate revenue plummeted to $107.6 million, significantly lower than $212.1 million in 2023, primarily due to a 40% decline in realized prices and a 16% decrease in sales volume.

Operating costs and expenses surged to $102.5 million for the third quarter of 2024, a 46% increase from $70.1 million in the previous year. This led to an operating loss of $39.5 million, compared to a loss of $17.5 million in the same quarter of 2023. The net loss for the third quarter was $25.5 million, a stark increase from a loss of $4.3 million in the prior year. For the nine months, the net loss reached $43.1 million, contrasting sharply with a net income of $40.6 million in 2023.

The company’s total assets decreased to $2.3 billion as of September 30, 2024, from $2.3 billion at the end of 2023. Total liabilities rose significantly to $1.2 billion, up from $970.7 million. Stockholders’ equity also fell to $1.1 billion from $1.4 billion.

Strategically, MP Materials is expanding its operations, including the construction of a manufacturing facility in Fort Worth, Texas, for neodymium-iron-boron permanent magnets. The company has secured a long-term agreement with General Motors to supply U.S.-sourced rare earth materials, receiving a $50 million prepayment in April 2024. Additionally, the company repurchased $400 million of its 2026 Notes, recording a $46.3 million gain on early extinguishment of debt.

Overall, MP Materials is navigating a challenging market environment, with fluctuating prices impacting revenue and profitability, while simultaneously investing in growth initiatives to enhance its production capabilities.