MP Materials Investor Conference Presentation Deck
2.
3.
Reconciliation
Net Income (Loss) to Adjusted Net Income
4.
5.
6.
7.
8.
9.
(in thousands, unaudited)
Net income (loss)
Adjusted for:
Depletion (1)
Stock-based compensation expense(2)
Transaction-related and other non-recurring costs(3)
Loss (gain) on sale or disposal of long-lived assets(4)
Write-down of inventories(5)
Royalty expense to SNR
Settlement charge(6)
Tariff rebate(7)
Other income, net(8)
For the three months ended
June 30,
Tax impact of adjustments above (9)
Adjusted Net Income
2021
27,166 $
4,686
4,498
247
170
1,809
2020
(62,491) $
28
1,619
For the three
months ended
March 31,
2021
366
66,615
(1,446)
(155)
362
(3,504)
(1,632)
33,440 $
4,898 $
1. Principally includes the depletion associated with the mineral rights for the rare earth ores contained in the Company's mine, which were recorded in connection with the acquisition of SNR at fair value as of the date of the Business Combination, resulting in a significant step-up of the
carrying amount of the asset.
Principally included in "General and administrative" within our unaudited Condensed Consolidated Statements of Operations. Approximately $3.7 million of the amount for the three months ended June 30, 2021, and $4.1 million of the amount for the three months ended March 31, 2021,
pertained to a one-time grant of stock awards to employees and executives upon the consummation of the Business Combination in November 2020.
Amounts in the respective periods presented are comprised of advisory, consulting, accounting and legal expenses principally incurred in connection with the secondary equity offering, which was completed contemporaneously with the Convertible Notes offering in March 2021, the
redemption of the Company's public warrants in May and June 2021, and the Business Combination, which was completed in November 2020.
16,119
4,531
5,673
1,058
(133)
(2,050)
(55)
(1,966)
23,177
Included in "General and administrative" within our unaudited Condensed Consolidated Statements of Operations.
Represents a write-down of a portion of our legacy low-grade stockpile inventory during the second quarter of 2021 after determining that the inventory contained a significant amount of alluvial material that did not meet the Company's requirement for mill feed.
In connection with terminating the DMA with Shenghe in June 2020, we recognized a one-time, non-cash settlement charge.
Represents non-cash revenue recognized in connection with a tariff rebate received relating to product sales from prior periods.
Principally represents a non-cash gain recognized as a result of the Small Business Administration's approval to forgive the Paycheck Protection Loan.
Tax impact of adjustments is calculated using an adjusted effective tax rate, excluding the impact of discrete tax costs and benefits, to each adjustment. The adjusted effective tax rates were 20.6%, (0.5) %, and 21.8% for the three months ended June 30, 2021 and 2020 and for the three
months ended March 31, 2021, respectively. The rate for the three months ended June 30, 2020, reflects a full valuation allowance.
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