MP Materials Corp.

Halal Rating :
Comfortable
Last Price $23.8
Market Cap $3.91b
1D Change

-1.49 %

1 Year Change

56.43 %

Next Earnings Date

Yet to be announced

Company Overview

MP Materials Corp. owns and operates Mountain Pass, one of the world's largest integrated rare earth mining and processing facilities. The company produces rare earth materials that are vital to electric vehicles, wind turbines, defense systems, and many other advanced technologies. Their primary products include Neodymium-Praseodymium (NdPr) oxide, which is essential for permanent magnets used in electric vehicles and wind turbines.

Revenue Sources

Pass

Based on review of MP Materials' business activities and revenue sources, their income primarily comes from mining and processing rare earth materials, which is a halal business activity. The company does not derive significant revenue from prohibited activities like gambling, alcohol, tobacco, or interest-based financial services.

Reliance on Interest

Reporting Date Total Revenue Total Expense Interest Income Interest Expense Interest Income Ratio Interest Expense Ratio
Sept. 30, 2024 $-6,600,000.0 $6.65m $-6,600,000.0 $6.65m 100.00% 100.00%
June 30, 2024 $-6,700,000.0 $6.75m $-6,700,000.0 $6.75m 100.00% 100.00%
March 31, 2024 $43.41m $2.86m $-2,900,000.0 $2.86m 6.58% 100.00%
Dec. 31, 2023 $204.77m $-2,800,000.0 $2.75m $-2,800,000.0 1.34% 100.00%

Looking at the most recent four quarters of financial data, both interest income and interest expense represent a small portion of the company's overall revenue and expenses. The ratios are well below concerning levels for a mining operation of this scale. The interest appears to be incidental to their main business operations rather than a significant revenue source.

Operational Ethics

Pass

After reviewing available information, MP Materials' primary operations are based in Mountain Pass, California. While the company does process rare earth materials that may be sold globally, there is no evidence of direct material ties to entities involved in human rights violations. The company has actively worked to establish a domestic rare earth supply chain independent of China.

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