Molycorp (MCP) says CEO Mark Smith has resigned; no explanation is offered. Board vice chairman...

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Jack Lifton Comments (338)
 
Constantine Karyannoupoulos is arguably the best manager of a rare earth based business in the non Chinese world. he has been a non executive vice chairman of the Molycorp board since he sold his former already very successful rare earth/rare metals enterprise, Neo Materials Technologies to Molycorp early this year. Yet one wonders if anyone on that board has been listening to his always sage advice. I suspect not. I admire therefore his courage in accepting even an interim position as CEO of Molycorp under the same board that applauded and allowed the previous CEO to spend money relentlessly on an ever changing business model that I suspect has long lost any focus. The true test for Molycorp will be to see if they can retain Mr Karyannoupoulos in a decision making position either as CEO or even better as chairman of the board. Without the strong and experienced leadership of a rare earth/rare metals technological and market specialist of the caliber of Mr.Constantine Karyannoupoulos Molycorp will be no better off without Mr Smith than it was with him.
11 Dec 2012, 07:14 PM Reply Like

dsr70 Comments (1059)
 
@jack, thx for the comment. I value your opinion highly.
11 Dec 2012, 10:10 PM Reply Like

jkorankye Comments (8)
 
That is what I indicated in my previous statement, that there ought to be a changing of the guards at MCP. I am not shouting aloud with glee, but I feel he did the honorable thing, to resign with grace and respectability. Moreover, I wish him the best in his future endeavors. The company can now focus , in order to reign in profitability and transparency for all long shareholders. Let us support the company, and burn the shots in Dantes hell. From Britain with love. My God assist you to resolve the fiscal cliff, in a justiciable manner.
11 Dec 2012, 07:17 PM Reply Like

TimABuckley Comments (3)
 
The Molycorp announcement today appointing Constantine Karayannopoulos as Interim CEO is excellent news for long suffering Molycorp shareholders. The only better announcement will be when the Molycorp Chairman Ross Bhappu confirms he has convinced Constantine to accept the role permanently.
I concur 100% with Jack Lifton's comments above. Constantine has long proven his integrity, leadership, competency and strategic vision. Molycorp clearly needs integrity, and Constantine has proven his many times over.
I was unhappy to sell Neo Material Technologies, the Arkx Clean Energy Fund's biggest position at the time, into the Molycorp bid early this year (the only happy aspect was to bank 75% cash consideration). I am delighted to have Constantine back as a CEO of one of our companies. Once full commissioning of the mine is confirmed in 1Q2013, Molycorp's risk profile will improve materially. On the building economic recovery in the US and China, rare earth prices will recover materially. Both these factors will drive a significant improvement in Molycorp's operating cashflow profile and Constantine clearly knows how to maximise shareholder value. Either the stock price will go up, and / or he will start buying back shares around the current depressed levels from free operating cashflow into 2014. Go Constantine - great news!
Tim Buckley, MD Arkx Global Clean Energy Fund (Australia)
11 Dec 2012, 07:29 PM Reply Like

Moon Kil Woong Comments (8822)
 
It will be hard to make rare earths mining profitable in the US regulatory environment. Processing will be inordinately more expensive than China and environmental concerns will hog tie quick development. Although I'm big on rare earths, I'm hesitant to invest in US based rare earths and don't blame management or the CEO of Molycorp for having a rough time.
11 Dec 2012, 07:35 PM Reply Like

dsr70 Comments (1059)
 
@moon, sadly true. I wish it wasn't so.
11 Dec 2012, 10:09 PM Reply Like

Michael Bryant Comments (3534)
 
Great, a buying opportunity.
11 Dec 2012, 09:53 PM Reply Like

jym11 Comments (3)
 
Still don't know what to think about this... Is it good or bad?
(After initial logical mkt reaction)
12 Dec 2012, 01:31 AM Reply Like

Dr. Know Comments (7)
 
So much for the insider buying.....
12 Dec 2012, 01:51 AM Reply Like

Dr. Duru Comments (981)
 
Exactly. The insider buying on this stock, since last year, including by Smith at much higher prices, has got to be one of the more bizarre insider-buying episodes I have seen. One has to wonder whether the SEC investigation is somehow tied to it.
12 Dec 2012, 01:55 AM Reply Like

Ryan Castilloux Comment (1)
 
I'm not entirely familiar with Constantine Karayannopoulos and appreciate the positive feedback others have shared. What I do know about Constantine is that his background has been primarily on the processing end of rare earths and not the mining side.

Molycorp is, after all, a mining company despite its vertical integration ambitions. I have some early reservations about the current change of leadership at MCP.

First, it remains to be seen if Constantine has the meld needed to steer a miner through the above mentioned "hog tie" of environmental concerns and other regulatory boondoggles the US (in good intention) imposes on rare earth miners - as well as MCP's current SEC investigation.

Second, as I believe Jack alluded to to some extent; shifting MCP's top advisor (chairman) into the lead decision maker's role (CEO) may do more harm than good. As said best by Peter Drucker of HBS, "a great many people perform best as advisers but cannot take the burden and pressure of making the decision". Given Constantine's background as CEO of Neo Materials, he is demonstrably a decision maker - but his experience rests downstream of the mining industry. Without a mining-seasoned chairman behind him, it may be more sensible to go with a new CEO and put Karayannopoulos back in the chairman spot to steer vertical integration.

- Ryan Castilloux
12 Dec 2012, 03:24 AM Reply Like

poetslife Comment (1)
 
I invested a serious amount of money in Molycorp because I believe that the United States needs to be in rare earths. After much research, Molycorp seemed to be the most likely to succeed. My investment has tanked. I hope this guy Constantine can turn it around. I must confess I could use less drama and more professionalism...as in earnings and solid performance.
12 Dec 2012, 03:30 AM Reply Like