Seeking Alpha

Engineer Broker's  Instablog

Engineer Broker
Send Message
Chemical and Industrial Engineer from Purdue University. Has worked as a business consultant, and investment advisor, and at a multinational oil company.
  • #9 - The Top 10 REEsons To Buy Molycorp 1 comment
    Feb 2, 2011 2:58 PM | about stocks: MCP
    9. Undefined Reserves - MCP may have more HREE's than known

    FACT:

    From the 1/24/11 MCP Form S-1 page 4

    http://phx.corporate-ir.net/phoenix.zhtml?c=236277&p=irol-SECText&TEXT=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDA5NTAxMjMtMTEtMDA0NjcyL3htbA%3d%3d

    "Our reserves are bastnasite, but there are also known monazite occurrences on our property that we are currently examining."

    OPINION:

    Molycorp took the time to put this in their report for a reason. When you look back at past Molycorp published information they have had many instances of forecasting future happenings. They mentioned looking into doubling plant capacity months before it happened. Then MCP told the market again that they were going to bring it up at their next board meeting. They have also mentioned to the market interest in some of the supply and JV deals that they performed well before the deals actually happened. 

    Their statement may be translated to be that they have monazite on their property and believe that it could be of commercial significance. Their statement that they are currently examining it probably means that they are performing core samples and testing to determine the reserve quantity. Let the shorts beware if it turns out that Molycorp has HREE's now and the market does not need to wait 4-5 years for other HREE mines to come online.

    Stocks: MCP
Back To Engineer Broker's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • Valley Boy
    , contributor
    Comments (2207) | Send Message
     
    E-B:
    I'll add the U.S. Geological Survey study to this post for quick reference. Any fair- minded person would come to the conclusion that Mountain Pass is a very rich deposit.
    pubs.usgs.gov/of/2005/...
    24 Mar 2011, 02:15 AM Reply Like
Full index of posts »
Latest Followers

StockTalks

  • Here is a good article in the New Yorker "In praise of short sellers" http://nyr.kr/1MJ8e4Z Checks and balances strengthen us $LL
    Mar 17, 2015
  • 9 More trading days left until the $MCP unlock occurs. It could be a potentially great buying opportunity for MCP soon after this event.
    May 17, 2011
  • $MCP unlock extended 18 days until May 28th due to language in the Feb 14 prospectus on page 145. MCP Falling! http://bit.ly/mzUJ86
    May 16, 2011
More »

Latest Comments


Most Commented
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.