MP Materials Corp.

Section 1: Company Overview and Fundamentals

1.2 Company Overview:

MP Materials Corp. is a producer of rare earth materials in the western hemisphere. The Company owns and operates the mountain pass rare earth mine and processing facility in California in North America's rare earth production site. Processing Facility (Mountain Pass), which is a rare earth mining and processing site of scale in the western hemisphere.

1.2 The Key Positives and Negatives

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~53.58% of the total shareholding. JHL Capital Group LLC and Litinsky (James H.) are holding the maximum stake in the company at ~16.09% and ~9.48%, respectively.

 1.4 Key Metrics:

MP has shown a higher profit margin across all the segments in Q2FY22 when compared to the industry median, which demonstrates efficient resource allocation and operational efficiency. Additionally, the other graph shows how MP is efficiently using its assets and paying down obligations in comparison to its peer maintaining a healthy liquidity position.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q2FY22:

Section 3: Key Risks

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Multiple-Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is October 26, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices. 

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