With $MP (+1.54%) . Yesterday's figures led to a further significant rise after the close of trading. The share has the potential to become a tenbagger. Even though my buy-in will naturally increase gradually due to the monthly savings plan, the first shares have already more than tripled. My buy-in across all shares is currently €24.
The shares of MP Materials Corp (NYSE:MP) rose by 7% in after-hours trading yesterday after the producer of rare earths impressed with strong quarterly figures. The company also made clear progress with its strategy of offering refined products with higher added value. Investors reacted positively to signs that the transition from low-margin concentrate sales to the production of NdPr oxide and metals is gathering pace.
For the second quarter ended June 30, MP reported sales of USD 57.4 million - well above analysts' estimates of USD 46.7 million and 84% higher than in the same period last year. Adjusted loss per share was USD 0.13, also better than the expected loss of USD 0.20 - a year-on-year improvement of 24%.
Production volumes were a key driver of sales growth: NdPr oxide production reached a new record of 597 tons - an increase of 119% compared to the previous year. Total production of rare earth oxides rose by 45% to 13,145 tons, the second-highest quarterly result in the company's history. At the same time, the sales volume of NdPr tripled to 443 tons.
"In Q2, our Materials segment achieved record production of NdPr oxide and delivered the second highest REO production in MP's history," said James Litinsky, Founder, Chairman and CEO of MP Materials. "At the same time, our Magnetics segment moved forward with commissioning and began profitably increasing metal production."
The Magnetics segment, which was established to support the downstream activities, achieved sales of USD 19.9 million and an adjusted EBITDA of USD 8.1 million in the first comparable reporting period. What is striking is that sales of rare earth concentrates fell by 51% year-on-year to USD 11.9 million - a clear signal that the company is moving away from exporting unprocessed raw materials, particularly to China.
MP Materials is increasingly positioning itself as a vertically integrated provider of magnetics solutions - supported by recently concluded partnerships with Apple (NASDAQ:AAPL) and the US Department of Defense. Management described these agreements as "significant" milestones that will contribute to long-term profitability and strengthen MP's role in the "emerging era of physical AI".
The strategic realignment appears to have been well received by investors, as the share price performance on Thursday shows. Despite continued negative results, the increasing production of high-quality products and strong partnerships point to a clearer path to sustainable value creation.
