MP Materials Rises 1.07% on $590M Volume Ranks 239th as Cost Pressures Intensify Amid Expansion

On July 31, 2025, MP Materials (MP) rose 1.07% with a trading volume of $590 million, ranking 239th in market activity. The stock’s performance follows persistent cost pressures linked to its production ramp-up. In 2024, the company’s cost of sales nearly doubled to $192.6 million, representing 94% of revenue, driven by elevated production costs during the initial phase of separated product manufacturing. This trend continued into Q1 2025, where costs surged 37% year-over-year to $48 million, or 80% of revenue, as higher refined product sales and low refining facility utilization inflated per-unit expenses. Despite increased revenue, Q1 2025 saw a 12-cent-per-share loss, widening from a 4-cent loss in the prior-year period.

MP’s strategic expansion at Mountain Pass is expected to further elevate costs in 2025, as separated rare earth products and magnetic precursor materials carry higher production expenses compared to rare earth concentrates. Analysts note that the Stage II production phase, initiated in Q1 2024, has entrenched cost pressures, with no immediate relief anticipated. The company’s forward 12-month price-to-sales ratio of 23.28X remains significantly above the industry average of 1.24X, reflecting speculative positioning despite a Zacks Rank of #3 (Hold). Earnings expectations for 2025 project a 43-cent loss per share, though estimates for 2026 show a projected 71-cent gain, signaling potential recovery as production normalizes.

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