1G·

The fast pace continues

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.

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22 Commenti

Tenbagger2024@Tenbagger2024

19H

I didn't go back in because it had already done too well for me. And I was expecting a correction.

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Chris@Multibagger

19H

@Tenbagger2024 I'm afraid for you, you won't get more than a 10% correction. I think it will reach triple digits by the end of the year, unless Xi and DT become blood brothers.😉😂😎

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Wif@salvo89ari

I'm also thinking about buying MP.
But:
❌ Negative cash flow
❌ Debt far too high

Did you see that too - or are you just going in because Apple and co. are begging Trump about the chip tariffs? 😅

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Chris@Multibagger

23H

@salvo89ari Have you read the whole post? I bought the first shares when many people still thought $MP was a fast food company😂. My buy in is €24. You can't measure such a value with normal yardsticks. Four weeks ago, the US government secured 15% of the company in order to gain more access to rare earths and reduce its dependence on China.
I have often written posts on commodity stocks here. This market is the key leverage that China has against the US and the US will do everything it can to reduce dependence and $MP is the top pick in this area in my view.

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Wif@salvo89ari

23H

@Multibagger No, the text was just too long for me - sorry!
But respect, you got in early - congratulations!
I also looked at the share yesterday and initially had the same opinion as you - mainly because of China, which controls over 80% of the raw materials.
But when I looked at the negative cash flow and the high level of debt, it was clear to me:
I'd rather wait - it doesn't fit my strategy at the moment.

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Chris@Multibagger

23H

@salvo89ari You have to stay true to your principles. I understand that.

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Chris@Multibagger

21H

@salvo89ari I have a few other stocks from the commodities sector. Another interesting one in the rare earths sector is $USAR. I believe they will see a similar development. But I got in later, only a good week ago on 29.07. But it has also made 32% since then.

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Wif@salvo89ari

21H

@Multibagger you are quite the professional investor bro
i find it very interesting that you buy such shares so early on
how did you become aware of this topic?

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Wif@salvo89ari

20H

$USAR i also saw it but only yesterday i researched the topic and only because yesterday i saw the video with apple CEO and trump😂
how did you recognize the topic so early

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Chris@Multibagger

20H

@salvo89ari I trade a lot of geopolitical issues in my long-term investments. And then it's not that difficult to come to the conclusion that 90% of the rare earths that are needed for everything come from China and Russia. The largest deposits in Europe are in eastern Ukraine. But they have not yet been mined. But for me, they are one of the main reasons why Russia is waging war and why Trump has concluded a raw materials deal with Ukraine.
The USA is absolutely dependent on China. In response to the tariffs, they simply stopped exporting rare earths and then DT was ready to suspend the tariffs.
And that is the only reason why there will be another tariff pause. The US will do everything in its power to reduce this dependency as quickly as possible, whatever the cost. And thanks to America First, US companies will benefit massively.
I know that commodities are uninteresting for many, but they are limited and therefore valuable. Just don't buy an ETF, especially not for rare earths. They will always underperform because of the 60-70% Chinese share.

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Wif@salvo89ari

20H

have a few more questions hope you have time to answer
how much % of your capital do you buy these commodity shares from usa
and how long do you plan to hold them?

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Wif@salvo89ari

20H

At the same time, I also have other players in the Rare Earth sector that I still need to study

$LYC.AX - Lynas Rare Earths (Australia, works with DoD & Australia)

$UURAF / $UCU.V - Ucore Rare Metals (Canada, Biden program)

$PRE.L - Pensana (UK, supported by British government)

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Chris@Multibagger

20H

@salvo89ari Of these, only $LYC is actually still interesting. I also recently created a post about this. But then I decided to go with $USAR for the time being.

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