MP Materials reports higher profit as rare earth prices surge (updated)

Bioxytran

24/02/2022 21:21

(Adds production and price details, background)
    Feb 24 (Reuters) - U.S. rare earth miner MP Materials Corp
 MP.N  on Thursday posted a higher fourth-quarter profit, helped
by rising prices for the minerals used to make high-end
electronics and weaponry.
    Rare earths are a group of 17 metals that, after processing,
are used to make magnets found in electric vehicles, weaponry
and electronics. Prices for these metals have been surging in
recent months due to strong demand for electric vehicles and
supply constraints.
    MP said its realized price for rare earth oxides (REO)
soared 148% to $10,101 per metric tonne square in the quarter.
Production of REOs rose to 10,261 metric tonnes from 4,070
metric tonnes a year ago.
    The company, which relies on China to process rare earth
oxides from its California mining complex, reported net income
of $49 million, or 26 cents per share, for the three months
ended Dec. 31, compared with $24.1 million, or 20 cents per
share, in the year-ago quarter.
    Currently, MP lightly processes rare earths it extracts from
California's Mountain Pass mine and ships the material to China
for separation into various rare earth metals because there are
no U.S.-based options.
    The U.S. government has funded the Las Vegas-based company
in part to help bring processing back to the country, where the
rare earths industry had its genesis in the mid-20th Century.

 (Reporting by Shariq Khan in Bengaluru; Editing by Maju Samuel)
 ((Shariq.Khan@thomsonreuters.com; Twitter: @shariqrtrs;))