INVENTORIES

3 Months Ended

Mar. 31, 2024

The Company’s inventories consisted of the following:


	March 31, 2024		December 31, 2023
(in thousands)
Raw materials and supplies, including spare parts(1)	$	43,808	$	42,371
Mined ore stockpiles	29,694		28,507
Work in process	27,141		15,019
Finished goods	7,866		9,285
Total current inventories	108,509		95,182
Add: Non-current portion(2)	14,531		13,350
Total inventories	$	123,040	$	108,532

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

(2)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 March 31, 2024 and December 31, 2023, were $9.6 million and $9.1 million, respectively.

For the three months ended March 31, 2024, the Company recorded a lower of cost or net realizable value reserve of $6.0 million on certain of the Company’s work in process and finished goods inventories, 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. The reserve is included in “Cost of sales (excluding depreciation, depletion and amortization) (including related party)” within the unaudited Condensed Consolidated Statement of Operations. There was no lower of cost or net realizable value reserve for the three months ended March 31, 2023.