real-time news and commentary for investors
Friday, Aug 9
Molycorp -10% after Q2 results, fundamentals "nearing a bottom"
- Molycorp (MCP -10.5%) shares slide after disappointing Q2 results, but Goldman Sachs believes fundamentals are nearing a bottom and maintains its Neutral rating and $6 price target.
- The firm notes several positive developments during the quarter, including normalizing REO demand as customer inventory destocking appears to have subsided and H2 order patterns are on the mend.
- Goldman says it's not time to pull the trigger, pending clarity around MCP's expected Sept. closing on a $125M revolver and commissioning of its chlor-alkali facility, a key factor in achieving targeted sub-$10/kg production costs and profitability.