INVENTORIES

9 Months Ended

Sep. 30, 2024

The Company’s inventories consisted of the following:


	September 30, 2024		December 31, 2023
(in thousands)
Raw materials and supplies, including spare parts(1)	$	46,138	$	42,371
Mined ore stockpiles	30,300		28,507
Work in process	24,695		15,019
Finished goods	15,566		9,285
Total current inventories	116,699		95,182
Add: Non-current portion(2)	19,825		13,350
Total inventories	$	136,524	$	108,532

(1)Includes raw materials to support activities pertaining to the Company’s rare earth metal, alloy and magnet manufacturing capabilities.

(2)Primarily represents stockpiled ore that is not expected to be processed within the next 12 months as well as certain raw materials that are not expected to be consumed within the next 12 months. The stockpiled ore amounts as of September 30, 2024 and December 31, 2023, were $12.0 million and $9.1 million, respectively.

As of September 30, 2024, the Company determined that a lower of cost or net realizable value reserve of $15.1 million was necessary on certain of the Company’s work in process and finished goods inventories, representing a decrease of the reserve of $2.7 million since June 30, 2024. The reserve is largely attributable to elevated carrying costs of the Company’s initial production of separated products given the early stage of ramping the Stage II facilities to normalized production levels. Changes in the reserve are included in “Cost of sales (excluding depreciation, depletion and amortization) (including related party)” within the unaudited Condensed Consolidated Statements of Operations. There were no lower of cost or net realizable value reserves for the three and nine months ended September 30, 2023.