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What Is Next For Molycorp, Molymet And Plansee

I have been a longtime advocate of Molycorp and the need for a legitimate and independent producer of rare earth metals in U.S.A. As you may remember I suggested that having to import these strategic materials was like us importing our steel needs from Germany prior to World War II. Also, I previously noted Magnequench manufacturing facility from Valparaiso, Indiana until it was moved to China. I found this provocative 2003 article which shows the lack insight that some of us show towards the need for rare earth metals then and now.

The last time I checked it is hard to move a mine across borders. Many U.S. entities have foreign properties that mine and manufacture abroad and many foreign companies operate mines, factories and various assets in the U.S. None of these operations violate sovereignty laws.

Molibdenos y Metales, S.A. (Molymet) manufactures molybdenum oxide, rhenium, iron molybdenum and other byproducts of these two chemicals. "Molymet currently supplies more than 30% of global demand for molybdenum products in a highly technical and competitive market. This has been achieved thanks to a broad network of international relationships based on its five branch companies and its commercial offices." Including Molymet Corp, Austin, Texas, and Alloy sales Co. in Weirton, WV

Molymet's largest shareholder, 11.5% is Plansee AG develops and manufactures powder metallurgical products and components. The Company provides clean energy, medical technology, electronics, and mobility material solutions. Plansee supplies its products worldwide. Plansee USA LLC principle office in is at Franklin, MA and E/G Electro-Graph Vista, CA

Molymet has invested $525,640,104 for 32,050,700 shares with an average cost of 16.40 per share, 18.8% of Molycorp's equity and the purchased $20,000,000 of 150mm the new 5.5% convertible bond. I do not know what Molymet or their largest shareholders Plansee AG 11.5% have planned for Molycorp. But, they do bring a wealth of knowledge in the global mining and metallurgy arena. They have operated significant, successful and respected companies through difficult cyclical environments. I would believe that they understand the needs that will make Molycorp a success.

My data and information all come from public information. But the conclusions are my own.

Alan Schlesinger


Additional disclosure: Short REE and trade MCP options Puts and Calss

Stocks: IQ