(Reuters) -Rare earths company MP Materials said on Thursday its third-quarter loss widened as it stopped sales to Chinese customers as part of an agreement with the U.S. government, although results surpassed Wall Street expectations.
Shares fell slightly to $51.86 in after-hours trading.
The results reflect the company’s transition from dependence on foreign sales to a focus on being a major U.S. miner and processor of rare earths and manufacturer of the magnets made from them that are used widely across the automotive, electronics and defense industries. MP owns the only U.S. rare earths mine and is developing a magnet facility in Oklahoma.
Las Vegas-based MP posted a quarterly loss of $41.8 million, or 24 cents per share, compared to a loss of $11.2 million, or 16 cents per share, in the year-ago quarter.
Excluding one-time items, MP lost 10 cents per share. By that measure, analysts expected a loss of 18 cents per share, according to LSEG data.
The company reported no revenue from sales of rare earths concentrate during the quarter. Those sales had formed the majority of its revenue for years, but a July investment agreement with the Pentagon precludes any future shipments.
MP did record $21.9 million in sales during the quarter of magnetic precursor products, which are essentially the building blocks for magnets. MP said it expects commercial magnet sales from its Oklahoma site to begin by the end of the year.
To make magnets, MP has had to build a facility to process so-called heavy rare earths. The company said it plans to commission that facility in mid-2026 using ore extracted from its California mine and purchased from third parties.
The company aims to produce 200 metric tons per year of dysprosium and terbium – two key heavy rare earths used to make magnets – at that facility.
(Reporting by Ernest ScheyderEditing by Bill Berkrot)
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