MP Material hurt by lower prices

Article Excerpt

MP MATERIALS, $14.05, is still a buy. The company (New York symbol MP; TSINetwork Rating: Extra Risk) (www.mpmaterials.com; Shares o/s: 178.1 million; Market cap: $2.6 billion; No divids.) saw its revenue fall 55.8% in the quarter ended December 31, 2023, to $41.2 million from $93.2 million a year earlier. Lower sale prices were spurred by weaker global demand. Specifically, sale prices fell by 34.0%, to $5,622 per metric tonne from $8,515. The company lost $0.02 a share, compared to a profit of $0.42. Despite short-term factors pushing down rare-earth prices, the long-term outlook for these critical minerals is sound. MP Materials is still a buy. buy. …