Gregory Jones

Gregory Jones asked about potential exposure to price increases from tariffs on any externally sourced materials like chemicals or reagents. He also questioned if there was a risk that grant payments under the IRA could be paused by a new administration.

Answer

CFO Ryan Corbett assured that due to favorable logistics and sourcing, MP has very little exposure to imported materials and does not expect tariffs to have a meaningful impact on its cost structure. CEO James Litinsky added that he sees no risk to grant payments, citing broad political support for critical minerals production and expecting any new policies to be beneficial to MP's efforts.

Gregory Jones asked for an estimate of the potential annual dollar value of the 45x production tax credit under the new final rules and questioned the potential impact of supply disruptions in Myanmar on MP's business and rare earth prices.

Answer

CFO Ryan Corbett described the 45x credit's impact as 'significant,' stating the final rules allow inclusion of extraction and material costs, making the credit worth approximately 10% of the cost of goods sold for qualifying products like NdPr oxide. CEO James Litinsky addressed the Myanmar situation, acknowledging it as a major supply source for China. He noted that while the short-term price impact is uncertain, the disruption could lead to upward price pressure in the medium-to-long term and reinforces the need for supply chain security.

Gregory Jones of BMO Capital Markets asked for an update on the Ewoyaa project's development timeline following potential ratification in 2025, considering the current weak market environment.

Answer

President and CEO Keith Phillips stated that while permitting and debt funding discussions are advancing, a final investment decision is unlikely at current spodumene prices of $800-$900/tonne. He explained that it's difficult to justify new mine construction in this environment, and the merged company will likely wait for a stronger market before committing capital. He anticipates that 2025 will be focused on finalizing permitting and refining the funding structure to minimize equity dilution.

Gregory Jones from BMO Capital Markets questioned the expected cadence of shipments in 2025 and asked for clarification on the difference between NAL's operating costs as reported by Piedmont versus its joint venture partner, Sayona.

Answer

President and CEO Keith Phillips and CFO Michael White explained that 2025 shipments will remain lumpy due to logistics optimization but should be more balanced than the 'hockey stick' ramp-up seen in 2024. Keith Phillips clarified the cost discrepancy is due to IFRS/GAAP inventory adjustments during the ramp-up phase, stating the cash cost excluding these adjustments is the more representative figure for current operations.

Gregory Jones from BMO Capital Markets asked for guidance on when an updated feasibility study for the larger-scale Carolina project might be released and inquired about the feedstock sourcing strategy for this expanded capacity.

Answer

Keith Phillips, President and CEO, responded that there are no current plans to publish an updated study, though optimization work is ongoing and models are shared with potential partners. For feedstock, he mentioned future options include Ghana offtake, as well as material from Quebec, Brazil, and Australia, expressing confidence in securing long-term supply.