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Molycorp (MCP): Q1 non-GAAP EPS of -$0.15 beats by $0.12. Revenue of $146.4M beats by $9M....

Molycorp (MCP): Q1 non-GAAP EPS of -$0.15 beats by $0.12. Revenue of $146.4M beats by $9M. Shares +5.6% AH. (PR)
Comments (11)
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    They lost less money than projected. I never got an answer from the bulls on whether their project phoenix will produce cost-effective heavy REEs that can command greater pricing power.
    9 May 2013, 04:23 PM Reply Like
  • CaladesiKid2
    , contributor
    Comments (271) | Send Message
     
    Here is another company reporting operating losses that drive an upward surge in share price. Interesting, particularly for a miner of commodities in a deflationary environment.
    9 May 2013, 04:51 PM Reply Like
  • Jason Burack
    , contributor
    Comments (1721) | Send Message
     
    Whitehawk, MCP is not a heavy rare earths play. They are a light Rare Earths/Neodymium and vertically integrated magnet play
    9 May 2013, 05:19 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Same question applies to Neodymium recovery for NIB magnets. Care to provide the hard data?

     

    PP was targeted toward heavy as well as certain light REEs. If MCP has changed their focus to solely Nd, please provide links to where they have stated this.
    9 May 2013, 07:21 PM Reply Like
  • jjbeswick
    , contributor
    Comments (8) | Send Message
     
    Hawk, it's not a question of changing focus but what's actually in the ore body.
    That's mostly Ce, La, Sm (82%) and the 2 dymiums (16%) by total REE as %s of total RE. No room for much else!
    Of course the dymiums are much higher value by weight.
    At just below 50% Cerium they'd better hope that Sorbex (or whatever it's called) does very well.
    Lynas plan to ditch their Ce at the concentration stage when they develop their Duncan deposit:probably a sensible move. Pure speculation but I wouldn't be surprised if Moly's inventory is mostly Ce without a market.
    10 May 2013, 11:36 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Thanks for your reply. Are you certain of the geology of MP/area? MCP is also transporting HREEs from other mines to its ore processing facility at MP, or so it had been reported. http://bit.ly/pHmb88

     

    My question on refining costs and yields still stands. I have yet to get answers, and as a potential investor, these are quite relevant. Company visibility on its costs and yields for various REE materials needs to be well understood, not vague, otherwise Twain's comment applies here.
    12 May 2013, 04:40 PM Reply Like
  • TiantongQ
    , contributor
    Comments (246) | Send Message
     
    I think they don't have refining costs and yields for individual elements. Because LREE and HREE mining is a very complex process in separating all the elements from each other and unique to each individual mine, I would expect just one comprehensive number for the entire mine. That said I don't think MCP is a good investment unless you believe rare earth prices will rise again in the short term, which is a very political calculation
    12 May 2013, 05:26 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    If MCP doesn't have a handle (or at least believable projections) on mining/refining costs, yields and margins, they shouldn't be in that business. That should be their priority, as well as communicating that to their shareholders/investors. Different REEs command different prices, have different demand curves, etc. Show us the goods, MCP. Keeping these issues vague just keeps the stock listed on the exchange and a casino chip trading vehicle. Serious investors want to see the proof.
    12 May 2013, 09:27 PM Reply Like
  • TiantongQ
    , contributor
    Comments (246) | Send Message
     
    What I mean is there is no margin or cost per element. All the margins and costs blend into each other because it is one single complex process. The only real margin and cost is the one taken over all elements. They should have those numbers in SEC filings or conference call.
    12 May 2013, 09:55 PM Reply Like
  • Jeb Handwerger
    , contributor
    Comments (622) | Send Message
     
    "The rare earths (REMX) may also see the end of the recent two year downtrend. Rare earths are used not only in wind turbines, smartphones, iPads and guided missiles, but they are increasingly used in automobiles to improve fuel efficiency. Newer more fuel efficient cars use almost double the amount than older gas guzzlers."

     

    GM and Ford are breaking out into new highs.
    http://seekingalpha.co...
    9 May 2013, 11:34 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4010) | Send Message
     
    Deflation should not play out that long. Buy the miners when they're out of favor.
    10 May 2013, 09:13 AM Reply Like
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