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MP Materials reports wider-than-expected Q1 loss on weak rare earth prices
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MP Materials reports wider-than-expected Q1 loss on weak rare earth prices
May 2, 2024 2:12 PM

May 2 (Reuters) - Rare earths miner MP Materials ( MP )

reported wider-than-expected loss in first quarter on Thursday,

hurt by lower concentrate sales and weak prices for the

strategic minerals.

MP processes rock it extracts from its Mountain Pass mine in

California into rare earths concentrate. It is the

second-biggest producer of rare earths outside China after

Australia's Lynas Rare Earths ( LYSCF ) and produces about 15% of

the rare earth content consumed annually.

Rare earths materials are critical to the energy transition

and the future of the automotive industry. The United States is

investing billions of dollars to shore up access.

However, rare earth prices have collapsed more than 50% over

the last two years, partly hurt by a slowdown in EV demand,

along with economic and geopolitical uncertainties.

The miner has struggled with falling prices for the

strategic minerals and, in February, had flagged a mid-teens

sequential decline in first-quarter realized concentrate

pricing.

Realized price of rare earth oxide in concentrate declined

54% in the quarter.

The company sold 9,332 metric tons of that concentrate

during the quarter, about 9% lower than the year-ago period.

CEO James Litinsky said the company experienced "continued

difficult pricing environment" in the quarter.

The company reported adjusted loss of 4 cents per share,

compared with analysts' expectations of a loss of 2 cents per

share.

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