MP Materials Announces $300M Share Repurchase Increase

By Bobby Samwell • Tuesday, September 03 15:22 • Permanent Link

MP Materials Corp. (NYSE: MP) has announced a significant increase to its share repurchase program, with the company's board of directors approving a $300 million addition, bringing the total authorized amount to $600 million. The share repurchase program has also been extended and is now effective until August 30, 2026.

Following the recent earnings announcement on August 1, 2024, MP Materials repurchased 1.4% of the company, which translates to approximately 2.2 million shares. The average price per share for these repurchases was $10.84. Combined with repurchases made earlier in March, MP Materials has now repurchased approximately 8.6% of the company's shares of common stock, amounting to a total of $225.1 million in 2024.

"We remain very confident in the long-term value of our assets and the MP platform," said James Litinsky, founder, chairman, and CEO of MP Materials. "As we have consistently stated, subject to continuing to maintain a fortress balance sheet, we expect to be opportunistic in our approach to capital allocation to create value for shareholders."

MP Materials may purchase shares from time to time at the discretion of management through open market purchases, privately negotiated transactions, block trades, accelerated or other structured share repurchase programs, or other means. The manner, timing, pricing, and amount of any transactions will be subject to the discretion of MP Materials and may be based upon market conditions, regulatory requirements, and alternative opportunities that MP Materials may have for the use or investment of its capital.

This announcement comes as MP Materials, the producer of specialty materials vital for electrification and other advanced technologies, continues to expand its manufacturing operations downstream to provide a full supply chain solution from materials to magnetics. The company's Mountain Pass facility is recognized as America's only scaled rare earth production source.

Following this development, investors and market analysts will be closely watching the company's capital allocation strategy and its potential impact on shareholder value in the coming years. Following these announcements, the company's shares moved -0.8%, and are now trading at a price of $12.8. Check out the company's full 8-K submission here.

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