Berkshire Hathaway Inc (BRK.B)

[gfp927z]

It would be great if Berkshire would get interested in funding rare earths. Interest in the sector has been rising fast so you never know. The sector ETF (REMX) is up 40% in a month, and the MP saga seems to have brought the sector to life.

MP is focused on the magnet side (Neodymium-Praseodymium), which are needed for electric cars, so an especially attractive market. NIOBF is focused on Niobium, Scandium, and Titanium, which have a different supply/demand landscape and end uses compared to magnets, so that might explain the difficulty getting funding. They need almost $1 Bil? That seems daunting considering MP only got $545 mil in the recent SPAC .

Fwiw, I'm hoping the sector has a pull back, a chance to add to MP and get some REMX, and maybe a position in NIOBF. I have a $1000 limit on individual stocks, so no large bets are possible, which may be just as well since the sector is so volatile and higher risk.



>>> MP Materials (MP) Completes Business Combination and Will Begin Trading on the NYSE under "MP"


Yahoo Finance

November 17, 2020


https://finance.yahoo.com/news/mp-materials-completes-business-combination-210600394.html


MP Materials, the largest rare earth materials producer in the Western Hemisphere, today announced the completion of its business combination with Fortress Value Acquisition Corp. (NYSE: FVAC), a special purpose acquisition company sponsored by an affiliate of Fortress Investment Group LLC ("Fortress"). The combined company, MP Materials Corp. ("MP Materials" or "the Company"), will begin trading on the New York Stock Exchange (NYSE) tomorrow, November 18th, under the ticker symbol "MP".

MP Materials owns and operates Mountain Pass, an iconic American industrial asset, which is the only rare earth mining and processing site of scale in the Western Hemisphere and currently produces approximately 15% of global rare earth content. The market for separated rare earth elements is expected to see significant growth, as these materials are critical inputs for the magnets that enable the mobility of electric vehicles, drones, defense systems, wind turbines, robotics and many other high-growth, advanced technologies. MP Materials’ integrated operations at Mountain Pass uniquely combine low production costs with best-in-class environmental standards, thereby restoring American leadership to a critical industry with a strong commitment to sustainability.

MP Materials raised $545 million in capital through the transaction, including $345 million of FVAC’s cash in trust and a $200 million PIPE led by institutional investors including Slate Path Capital, Chamath Palihapitiya and Omega Family Office. The capital raised from the transaction fully funds MP’s Stage II optimization plan, whereby the Company expects to become a fully integrated provider of separated rare earth oxides, with a focus on Neodymium-Praseodymium, one of the most crucial inputs for magnetics, by 2022.

"Today is an important milestone in our mission to restore the full rare earth supply chain to the United States of America," said James Litinsky, Chairman and CEO of MP Materials. "As world infrastructure electrifies, American leadership across this entire industrial supply chain is critical to our economic and national security. MP Materials has a profitable first stage business, a long term, multi-stage execution roadmap for value creation, a fully funded balance sheet, and a committed leadership team and Board of Directors. Our team is very proud to lead the way in onshoring a vital industry, to build a growing enterprise and to deliver positive outcomes to all of our stakeholders supported by our foundational commitments to sustainability and strong governance."

Litinsky continued, "I want to thank Drew McKnight and the Fortress team for their partnership and support and also welcome our new public investors to this exciting and important journey."

In addition to Chairman and CEO James Litinsky, MP Materials will continue to be led by its experienced management team, including: Michael Rosenthal, Chief Operating Officer; Ryan Corbett, Chief Financial Officer; and Sheila Bangalore, Chief Strategy Officer and General Counsel. In addition to Messrs. Litinsky and McKnight, the Company’s Board of Directors includes former Chairman of the Joint Chiefs of Staff General (Ret.) Richard Myers; former Omnicom Group CFO Randy Weisenburger; Founder and CEO of QVT Financial LP, Dan Gold; Senior Vice President, General Counsel and Corporate Secretary for Lockheed Martin Corporation, Maryanne Lavan; and former Partner and Managing Director of Goldman Sachs, Connie Duckworth.

Former CEO of FVAC, and Director of MP Materials, Drew McKnight said, "We are looking forward to participating with public shareholders in MP’s future success as the Company moves forward with its plans to bring the rare earth industry home to the United States. MP’s mission is not just a business plan - it’s an economic and security imperative for our country, and the entire leadership team and Board stand ready to execute with commitment and purpose on this tremendous opportunity."

Morgan Stanley & Co. LLC served as financial advisor and Sidley Austin LLP acted as legal advisor to MP Mine Operations LLC (dba "MP Materials"). Simpson Thacher & Bartlett LLP and Murray Devine served as legal and financial advisor, respectively, to Secure Natural Resources LLC (the owner of the mineral rights at Mountain Pass), which is also a party to the combination and will become a wholly-owned subsidiary of MP Materials Corp. Deutsche Bank Securities and RBC Capital Markets, LLC served as financial advisors, capital markets advisors, and private placement agents to FVAC. Weil, Gotshal & Manges LLP acted as legal advisor to FVAC.

About MP Materials

MP Materials Corporation (NYSE: MP) is the largest producer of rare earth materials in the Western Hemisphere. With over 270 employees, the Company owns and operates Mountain Pass, an iconic American industrial asset, which is the only rare earth mining and processing site of scale in the Western Hemisphere and currently produces approximately 15% of global rare earth content. Separated rare earth elements are critical inputs for the magnets that enable the mobility of electric vehicles, drones, defense systems, wind turbines, robotics and many other high-growth, advanced technologies. MP Materials’ integrated operations at Mountain Pass uniquely combine low production costs with best-in-class environmental standards, thereby restoring American leadership to a critical industry with a strong commitment to sustainability. More information is available at https://mpmaterials.com/.

About Fortress Value Acquisition Corp.

Fortress Value Acquisition Corp. is a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses, and is sponsored by an affiliate of Fortress Investment Group LLC.

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