Rare earths miner MP Materials hits record high after smaller loss, Pentagon and Apple boost

MP Materials’ stock soared to a record high on Friday after the U.S. rare earths miner reported increased output, a smaller-than-anticipated quarterly loss, and projected further production growth. Shares climbed 10.45% to $78.50 in early trading.
The Las Vegas-based company, which operates the only U.S. rare earths mine, has seen its stock quadruple this year amid U.S. efforts to secure domestic supplies and reduce reliance on China.
The gains follow a multibillion-dollar deal with the U.S. Department of Defense, setting a $110 per kg price floor for NdPr—nearly double Chinese market rates—potentially making the Pentagon MP’s largest shareholder. Additionally, a $500 million rare earth magnet supply deal with Apple, with prepayments covering most of the expansion costs for MP’s Independence mine in Texas, bolstered the stock’s rise.
Reuters:
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Production of neodymium and praseodymium (NdPr), the most in-demand rare earths, jumped nearly 120% in the second quarter to a record 597 metric tons.
In the current quarter, NdPr oxide production is expected to rise 10% to 20% sequentially, Founder and Chief Operating Officer Michael Rosenthal said on a post-earnings call.
Analysts at TD Cowen said strong upstream volumes and magnetics output drove a 40% EBITDA beat, with commercial magnet production on track by the year-end.
They now expect the company to hit a 60,000-tonne annual run-rate of rare earth oxide output a year ahead of schedule.
Stage III magnetics operations are already EBITDA-positive and, alongside government and Apple funding, leave the company well-capitalized to accelerate growth, brokerage DA Davidson said.

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MacDailyNews Note: MP posted an adjusted loss of $0.13 per share for second quarter, while analysts estimated a $0.19 loss.

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