Shares of MP Materials Corp. (MP), a leading producer of rare earth materials, plummeted over 5% on Wednesday after the company reported weaker-than-expected third-quarter results and provided a cautious outlook for the remainder of the year.
The California-based mining company posted a loss of 12 cents per share for the quarter ended September 30, narrower than analysts' estimates of a 13-cent loss. However, the company's earnings were impacted by weaker pricing and demand for neodymium and praseodymium (NdPr), two key rare earth elements used in battery magnets.
Analysts noted that while rare earth pricing has stabilized since the beginning of the year, legacy demand for MP Materials' products remains cyclically weak. Furthermore, the company warned that production volumes might decline or remain flat in the fourth quarter due to planned maintenance, raising concerns about future growth prospects.
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