2021 Q4 Form 10-K Financial Statement

#000180136822000010 Filed on February 28, 2022

View on sec.gov

Income Statement

Concept 2021 Q4 2021 2020 Q4
Revenue $99.11M $332.0M $134.3M
YoY Change -26.2% 147.15%
Cost Of Revenue $18.46M $74.31M $66.20M
YoY Change -72.12% 12.25%
Gross Profit $80.65M $257.6M $68.10M
YoY Change 18.43% 278.33%
Gross Profit Margin 81.38% 77.61% 50.71%
Selling, General & Admin $15.88M $57.59M $23.70M
YoY Change -33.0% 113.29%
% of Gross Profit 19.69% 22.35% 34.8%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $4.615M $24.38M $6.930M
YoY Change -33.41% 251.78%
% of Gross Profit 5.72% 9.46% 10.18%
Operating Expenses $23.23M $88.92M $32.80M
YoY Change -29.19% 145.63%
Operating Profit $57.43M $165.3M $35.30M
YoY Change 62.69% -576.46%
Interest Expense -$2.487M $8.904M -$5.100M
YoY Change -51.24% 77.76%
% of Operating Profit -4.33% 5.39% -14.45%
Other Income/Expense, Net $98.00K $3.754M $300.0K
YoY Change -67.33% 1395.62%
Pretax Income $54.69M $160.2M -$36.10M
YoY Change -251.49% -505.96%
Income Tax $5.700M $25.16M -$17.60M
% Of Pretax Income 10.42% 15.7%
Net Earnings $48.99M $135.0M -$18.40M
YoY Change -366.24% -718.73%
Net Earnings / Revenue 49.43% 40.68% -13.7%
Basic Earnings Per Share $0.78
Diluted Earnings Per Share $253.2K $0.73 -$97.15K
COMMON SHARES
Basic Shares Outstanding 177.7M shares 173.5M shares
Diluted Shares Outstanding 189.8M shares

Balance Sheet

Concept 2021 Q4 2021 2020 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.179B $1.179B $519.7M
YoY Change 126.92% 126.92%
Cash & Equivalents $1.179B $1.179B $519.7M
Short-Term Investments $0.00
Other Short-Term Assets $7.809M $7.809M $5.500M
YoY Change 41.98% 41.98%
Inventory $38.69M $38.69M $32.27M
Prepaid Expenses
Receivables $51.01M $51.01M $3.589M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.277B $1.277B $561.0M
YoY Change 127.58% 127.59% 1946.94%
LONG-TERM ASSETS
Property, Plant & Equipment $610.6M $611.7M $502.0M
YoY Change 21.64% 21.61% 982.17%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $2.247M $1.149M $1.139M
YoY Change 97.28% -88.74% 83.12%
Total Long-Term Assets $612.9M $612.9M $513.2M
YoY Change 19.41% 19.4% 589.98%
TOTAL ASSETS
Total Short-Term Assets $1.277B $1.277B $561.0M
Total Long-Term Assets $612.9M $612.9M $513.2M
Total Assets $1.890B $1.890B $1.074B
YoY Change 75.9% 75.9% 955.35%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $35.73M $35.73M $16.20M
YoY Change 120.58% 120.58%
Accrued Expenses $357.0K $357.0K
YoY Change -55.38%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $16.34M $2.403M
YoY Change -100.0% -33.86%
Total Short-Term Liabilities $59.54M $59.54M $43.06M
YoY Change 38.28% 38.15% 37.51%
LONG-TERM LIABILITIES
Long-Term Debt $674.9M $675.5M $961.0K
YoY Change 70131.74% 1365.25%
Other Long-Term Liabilities $7.751M $41.41M $1.628M
YoY Change 376.11% -5.46% -67.78%
Total Long-Term Liabilities $821.4M $716.9M $177.4M
YoY Change 363.15% 697.43% 100.39%
TOTAL LIABILITIES
Total Short-Term Liabilities $59.54M $59.54M $43.06M
Total Long-Term Liabilities $821.4M $716.9M $177.4M
Total Liabilities $880.9M $880.9M $220.4M
YoY Change 299.68% 299.7% 83.96%
SHAREHOLDERS EQUITY
Retained Earnings $72.42M -$62.62M
YoY Change -215.64% 53.5%
Common Stock $18.00K $17.00K
YoY Change 5.88% 142.86%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.009B $1.009B $853.9M
YoY Change
Total Liabilities & Shareholders Equity $1.890B $1.890B $1.074B
YoY Change 75.9% 75.9% 955.35%

Cashflow Statement

Concept 2021 Q4 2021 2020 Q4
OPERATING ACTIVITIES
Net Income $48.99M $135.0M -$18.40M
YoY Change -366.24% -718.73%
Depreciation, Depletion And Amortization $4.615M $24.38M $6.930M
YoY Change -33.41% 251.78%
Cash From Operating Activities $31.51M $102.0M $4.150M
YoY Change 659.2% 3011.72%
INVESTING ACTIVITIES
Capital Expenditures -$37.45M $123.9M -$22.37M
YoY Change 67.41% 453.73%
Acquisitions
YoY Change
Other Investing Activities $1.767M $4.507M $345.0M
YoY Change -99.49%
Cash From Investing Activities -$35.68M -$119.4M $322.6M
YoY Change -111.06% 433.59%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -3.501M $666.1M 175.2M
YoY Change -102.0% 27.62%
NET CHANGE
Cash From Operating Activities 31.51M $102.0M 4.150M
Cash From Investing Activities -35.68M -$119.4M 322.6M
Cash From Financing Activities -3.501M $666.1M 175.2M
Net Change In Cash -7.677M $648.7M 502.0M
YoY Change -101.53% 29.0%
FREE CASH FLOW
Cash From Operating Activities $31.51M $102.0M $4.150M
Capital Expenditures -$37.45M $123.9M -$22.37M
Free Cash Flow $68.96M -$21.90M $26.52M
YoY Change 160.02% 14.7%

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64000 USD
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24382000 USD
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2255000 USD
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2094000 USD
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3375000 USD
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22931000 USD
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54828000 USD
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3219000 USD
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8229000 USD
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9573000 USD
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4154000 USD
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-1794000 USD
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82000 USD
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-3848000 USD
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6246000 USD
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3463000 USD
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0 USD
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-2746000 USD
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0 USD
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IncreaseDecreaseInContractWithCustomerLiabilityRelatedParties
1933000 USD
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7061000 USD
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-4546000 USD
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101971000 USD
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3277000 USD
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CY2021 us-gaap Payments To Acquire Property Plant And Equipment
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4382000 USD
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-22370000 USD
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5624000 USD
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0 USD
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0 USD
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CY2019 us-gaap Payments Of Debt Issuance Costs
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0 USD
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521961000 USD
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648717000 USD
CY2020 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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502868000 USD
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1091000 USD
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532440000 USD
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29572000 USD
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29572000 USD
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532440000 USD
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29572000 USD
CY2021 us-gaap Number Of Reportable Segments
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CY2021 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
As of December 31, 2021, Shenghe accounted for more than 90% of product sales. Shenghe has entered into an arrangement to purchase substantially all of the Company’s production of rare earth concentrate. As with any contract, there is risk of nonperformance; however, we do not believe that it is reasonably possible that Shenghe would terminate the agreement as it would delay Shenghe’s recovery of non-interest-bearing advance payments that are recognized by the Company as debt. As discussed in <span style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline"><a href="#i8ee915207ea04d95a548923ad88c977a_190" style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">Note 9, </a><a href="#i8ee915207ea04d95a548923ad88c977a_190" style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">“</a><a href="#i8ee915207ea04d95a548923ad88c977a_190" style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">Debt </a><a href="#i8ee915207ea04d95a548923ad88c977a_190" style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">Obligations,</a><a href="#i8ee915207ea04d95a548923ad88c977a_190" style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">”</a></span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> full repayment of the obligation will occur by the end of the </span><div style="margin-bottom:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">first quarter of 2022 whether through non-cash recoupments from sales or a cash payment based, in part, on the Company’s GAAP net income for the year ended December 31, 2021. See also </span><span style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline"><a href="#i8ee915207ea04d95a548923ad88c977a_175" style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">Note 4, “Relationship and Agreements with Shenghe,”</a></span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> for additional information.</span></div><div style="margin-bottom:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Furthermore, while revenue is generated in the United States, our principal customer conducts its primary operations in China and may transport and sell products in the Chinese market; therefore, the Company’s revenue is affected by Shenghe’s ultimate realized prices in China. In addition, there is an ongoing economic conflict between China and the United States that has resulted in tariffs and trade barriers that may negatively affect the Company’s business and results of operations.</span></div><div style="margin-bottom:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In December 2019, a novel strain of coronavirus (known as “COVID-19”) began to impact the population of China. In March 2020, the outbreak of COVID-19 was declared a global pandemic after growing both in the United States and globally. The responses by governments, societies, and private sector entities to the COVID-19 pandemic, which include temporary closures of businesses, social distancing, travel restrictions, “shelter in place,” and other governmental regulations and various economic stimulus programs, have significantly impacted market volatility and general global economic conditions, including significant business and supply chain disruption as well as broad-based changes in supply and demand.</span></div><div style="margin-bottom:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Since the onset of the COVID-19 pandemic in the first quarter of 2020, we have experienced, at times, significant shipping delays due to congestion and slowdowns at U.S. and international ports caused by shortages in vessels, containers, and truckers, also disrupting the global supply chain. Congestion and slowdowns have affected and may continue to affect the capacity at ports to receive deliveries of products or the loading of shipments onto vessels. Despite these factors, we have not experienced a reduction in production or sales due to the COVID-19 pandemic; however, the COVID-19 pandemic has contributed to certain cost and schedule pressures on the Stage II optimization project. The Company has worked proactively and diligently to adjust working schedules and hours to optimize logistics and shipping, which has thus far prevented a significant negative impact on our product sales and has mitigated certain impacts on Stage II construction and recommissioning progress. However, there can be no assurance that the ongoing COVID-19 pandemic will not have a negative impact on our production, sales, or growth projects in the future.</span></div><div style="margin-bottom:10pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Furthermore, as the situation continues to evolve, including as a result of new and potential future variants of COVID-19 (such as the Delta and Omicron variants), the possibility of federal or state mandates on vaccinations, or other factors that may affect international shipping and logistics or involve responses to government actions such as strikes or other disruptions, it is impossible to predict the effect and ultimate impact of the COVID-19 pandemic on the Company’s business and results of operations. The extent and duration of any business disruptions, and related financial impact, cannot be estimated at this time.</span></div>
CY2021 us-gaap Use Of Estimates
UseOfEstimates
The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements, and (iii) the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to the useful lives and recoverability of long-lived assets (such as the effects of mineral reserves and cash flows from operating the mine in determining the life of the mine); uncertain tax positions; the valuation allowance of deferred tax assets; asset retirement and environmental obligations; and determining the fair value of assets and liabilities in acquisitions and financial instruments in connection with transactions that require initial measurement to be at fair value. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ from those estimates.
CY2020Q4 us-gaap Allowance For Doubtful Accounts Receivable Current
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CY2021Q4 us-gaap Allowance For Doubtful Accounts Receivable Current
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0 USD
CY2021 us-gaap Prior Period Reclassification Adjustment Description
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Certain amounts in prior periods have been reclassified to conform to the current year presentation.
CY2020Q4 mp Conversion Of Stock Shares Issued Conversion Ratio
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59908.35
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CY2020Q4 us-gaap Common Stock Shares Outstanding
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28200000 USD
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0.0999
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35543000 USD
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28482000 USD
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0 USD
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11050000 USD
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10311000 USD
CY2021 mp Contract With Customer Liability Related Parties Revenue Recognized
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0 USD
CY2020 mp Contract With Customer Liability Related Parties Revenue Recognized
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9117000 USD
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3250000 USD
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0 USD
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37476000 USD
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0 USD
CY2021Q4 mp Contract With Customer Liability Related Parties Deferred Revenue
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0 USD
CY2020Q4 mp Contract With Customer Liability Related Parties Deferred Revenue
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0 USD
CY2019Q4 mp Contract With Customer Liability Related Parties Deferred Revenue
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CY2019Q4 mp Contract With Customer Liability Deferred Revenue Current
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6600000 USD
CY2018Q4 mp Contract With Customer Liability Deferred Revenue Current
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CY2020Q4 us-gaap Restricted Cash Current
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CY2021Q4 us-gaap Restricted Cash Noncurrent
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CY2020Q4 us-gaap Restricted Cash Noncurrent
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CY2021Q4 us-gaap Restricted Cash
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CY2020Q4 us-gaap Restricted Cash
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CY2020Q4 us-gaap Inventory Raw Materials And Supplies Net Of Reserves
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CY2021Q4 us-gaap Inventory Work In Process Net Of Reserves
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CY2020Q4 us-gaap Inventory Work In Process Net Of Reserves
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CY2021Q4 us-gaap Inventory Finished Goods Net Of Reserves
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CY2020Q4 us-gaap Inventory Finished Goods Net Of Reserves
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CY2020Q4 us-gaap Inventory Net
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CY2021Q2 us-gaap Inventory Write Down
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CY2020Q4 us-gaap Property Plant And Equipment Gross
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CY2020Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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14892000 USD
CY2021Q4 us-gaap Property Plant And Equipment Net
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CY2020Q4 us-gaap Property Plant And Equipment Net
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138000000 USD
CY2020 us-gaap Property Plant And Equipment Additions
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CY2019 us-gaap Property Plant And Equipment Additions
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200000 USD
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CY2021Q1 us-gaap Payments To Acquire Property Plant And Equipment
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CY2020Q4 mp Proceeds From Government Awards For Property Plant And Equipment
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9600000 USD
CY2021 mp Proceeds From Government Reimbursements For Property Plant And Equipment
ProceedsFromGovernmentReimbursementsForPropertyPlantAndEquipment
4400000 USD
CY2021Q4 mp Technology Investment Agreement Stage Ii Optimization Contribution
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5200000 USD
CY2021Q4 us-gaap Property Plant And Equipment Gross Period Increase Decrease
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CY2021 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment Period Increase Decrease
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4702000 USD
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CY2020 us-gaap Depletion
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1961000 USD
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FinanceLeaseCost
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CY2019 mp Finance Lease Cost
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P2Y8M12D
CY2020Q4 us-gaap Finance Lease Weighted Average Remaining Lease Term1
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P3Y6M
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CY2021Q4 us-gaap Finance Lease Liability Payments Due Next Twelve Months
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CY2021Q4 us-gaap Finance Lease Liability Payments Due Year Two
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CY2021Q4 us-gaap Finance Lease Liability Payments Due Year Three
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CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Four
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CY2021Q4 us-gaap Finance Lease Liability Payments Due Year Four
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CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Five
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CY2021Q4 us-gaap Finance Lease Liability Payments Due Year Five
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CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
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CY2021Q4 us-gaap Finance Lease Liability Payments Due After Year Five
FinanceLeaseLiabilityPaymentsDueAfterYearFive
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CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due
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CY2021Q4 us-gaap Finance Lease Liability Payments Due
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CY2020Q4 us-gaap Finance Lease Liability
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CY2021Q4 us-gaap Asset Retirement Obligation Revision Of Estimate
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CY2020 us-gaap Asset Retirement Obligation Liabilities Settled
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213000 USD
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CY2020 us-gaap Asset Retirement Obligation Revision Of Estimate
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CY2020Q4 us-gaap Asset Retirement Obligation
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CY2021Q4 us-gaap Asset Retirement Obligation Current
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100000 USD
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167300000 USD
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AssetRetirementObligationsEstimatedUndiscountedCashFlowsToSatisfyObligation
142300000 USD
CY2021Q4 mp Asset Retirement Obligation Closure And Reclamation Obligations Financial Assurances
AssetRetirementObligationClosureAndReclamationObligationsFinancialAssurances
39000000 USD
CY2020Q4 mp Asset Retirement Obligation Closure And Reclamation Obligations Financial Assurances
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27700000 USD
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P26Y
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500000 USD
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504000 USD
CY2021Q4 us-gaap Accrual For Environmental Loss Contingencies Undiscounted Due In Second Year
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520000 USD
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536000 USD
CY2021Q4 us-gaap Accrual For Environmental Loss Contingencies Undiscounted Due In Fourth Year
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552000 USD
CY2021Q4 us-gaap Accrual For Environmental Loss Contingencies Undiscounted Due In Fifth Year
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569000 USD
CY2021Q4 us-gaap Accrual For Environmental Loss Contingencies Undiscounted Due After Fifth Year
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24998000 USD
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27679000 USD
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10576000 USD
CY2021Q4 us-gaap Accrual For Environmental Loss Contingencies
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17103000 USD
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CY2020 us-gaap Current Federal Tax Expense Benefit
CurrentFederalTaxExpenseBenefit
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CY2019 us-gaap Current Federal Tax Expense Benefit
CurrentFederalTaxExpenseBenefit
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CY2021 us-gaap Current State And Local Tax Expense Benefit
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CY2020 us-gaap Current State And Local Tax Expense Benefit
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156000 USD
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1000 USD
CY2021 us-gaap Current Income Tax Expense Benefit
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CY2020 us-gaap Current Income Tax Expense Benefit
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156000 USD
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CurrentIncomeTaxExpenseBenefit
1000 USD
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CY2019 us-gaap Deferred Federal Income Tax Expense Benefit
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CY2021 us-gaap Deferred State And Local Income Tax Expense Benefit
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CY2020 us-gaap Deferred State And Local Income Tax Expense Benefit
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CY2021 us-gaap Deferred Income Tax Expense Benefit
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17425000 USD
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DeferredIncomeTaxExpenseBenefit
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CY2019 us-gaap Deferred Income Tax Expense Benefit
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CY2021 us-gaap Income Tax Expense Benefit
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25158000 USD
CY2020 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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CY2019 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
1000 USD
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400000 USD
CY2020 mp Adjustments To Additional Paid In Capital Business Combination Adjustment To Proceeds For Deductible Expenditures
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4700000 USD
CY2021 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
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160195000 USD
CY2020 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
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CY2019 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
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33641000 USD
CY2020 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2020 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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CY2019 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2019 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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CY2021 us-gaap Income Tax Reconciliation State And Local Income Taxes
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CY2020 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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CY2020 us-gaap Income Tax Reconciliation State And Local Income Taxes
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CY2019 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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CY2019 us-gaap Income Tax Reconciliation State And Local Income Taxes
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CY2021 mp Effective Income Tax Rate Reconciliation Officers Compensation Limitation Percent
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CY2021 mp Effective Income Tax Rate Reconciliation Officers Compensation Limitation Amount
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2638000 USD
CY2020 mp Effective Income Tax Rate Reconciliation Officers Compensation Limitation Percent
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-0.012
CY2020 mp Effective Income Tax Rate Reconciliation Officers Compensation Limitation Amount
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478000 USD
CY2019 mp Effective Income Tax Rate Reconciliation Officers Compensation Limitation Percent
EffectiveIncomeTaxRateReconciliationOfficersCompensationLimitationPercent
0
CY2019 mp Effective Income Tax Rate Reconciliation Officers Compensation Limitation Amount
EffectiveIncomeTaxRateReconciliationOfficersCompensationLimitationAmount
0 USD
CY2021 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Depletion
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CY2021 us-gaap Income Tax Reconciliation Nondeductible Expense Depletion
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CY2020 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Depletion
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CY2020 us-gaap Income Tax Reconciliation Nondeductible Expense Depletion
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0 USD
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CY2021 dei Auditor Name
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KPMG LLP
CY2021 dei Auditor Location
AuditorLocation
Denver, CO
CY2021 dei Auditor Firm
AuditorFirmId
185

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