A caller inquired about starting a position in MP Materials Corp. (NYSE:MP) during the lightning round of the September 2 episode of Mad Money, and Jim Cramer replied:
I think it makes sense. Look, we know we need those critical materials. That’s the single best most investable play in the situation. But I don’t expect anything to happen very soon, and that’s the problem. It’s taking a very long time there.
Cramer also backed the company in April. On April 15, he pointed to the company’s critical materials and government support. On April 29, he cited its government backing and management.
MP Materials Earnings Show Higher Revenue but Continued Net Loss
In Q2, MP Materials Corp. generated $126.1 million of consolidated revenue and PPA income, consisting of $108.5 million of revenue and $17.6 million of PPA income. The company also reported a $20.3 million GAAP net loss for the second quarter. Neodymium-praseodymium (NdPr) production increased 41% to 840 metric tons, while NdPr sales rose 127% to 1,006 metric tons.
At the Canaccord Genuity conference on August 12, CFO Ryan Corbett said the company had previously reached 13,500 tons of upstream rare earth oxide in a quarter and remained focused on its 60,000-ton annual target. Corbett also said the company continues to target 6,075 tons of annual NdPr refining capacity, describing the challenge as a mechanical rather than technical one. He said MP’s magnets were undergoing automotive production-part approval processes, with some testing results expected to take several months.
Bear Case for MP Materials
MP Materials Corp. is committing significant capital to its expansion while its operating cash generation remains limited. The company recorded $307.7 million of additions to property, plant and equipment in the first six months of 2026, compared with $59.5 million a year earlier, while net cash provided by operating activities was $4.9 million. Cash, cash equivalents and short-term investments stood at $1.45 billion at June 30, down from $1.83 billion at the end of 2025, while long-term debt was $934.6 million.
Furthermore, the company’s expansion plans have timelines that extend several years. Corbett said in August that the company had previously estimated it would take “four-plus years” to reach its 60,000-ton upstream production target. He also said automotive production-part approval is an intense process, with many testing results taking “many months” to arrive.
Hedge Fund Positioning and Short Interest
As per Insider Monkey’s data, 50 hedge funds held MP Materials in the second quarter, compared with 52 in the previous quarter. Additionally, short interest was roughly 18% of the float. Cramer’s view remains positive on MP Materials Corp., but his latest comments mention the long timeline for the company’s plans to play out. With major refining and magnet capacity still under development, the story is likely to remain tied to its production ramp and the timing of its expansion projects.
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