Difficult Market Environment: MP Materials Slips into Negative Figures

by | 3. Nov 2023 - 09:19 | Finances

Falling prices for rare earths weigh on operators of the Mountain Pass Mine in California.

MP Materials presented its figures for the third quarter on Thursday after the close of trading. The group, which specializes in rare earths, reported a significant decline in turnover. However, at 58 percent to 124.4 million US dollars, this was somewhat lower than analysts had expected, according to the news agency Reuters. The company also had to cope with a drop in profits. MP Materials ended the quarter with a net loss of 4.3 million US dollars.

The background to this development is the fall in prices for its products and the lower sales volume. CEO James Litinsky nevertheless believes his company is on course and points to progress in the magnetics business. With the first-time production of neodymium-praseodymium, the base material for permanent magnets, among other things, a milestone has been reached, not only for the company but also for the establishment of its own supply chain for these important components.

Photo: iStock/graffoto8