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Molycorp (MCP +4.7%) is upgraded to Strong Buy at Byron Capital, which sees it as in the best...

Molycorp (MCP +4.7%) is upgraded to Strong Buy at Byron Capital, which sees it as in the best position to reap benefits as companies seek out reliable sources of rare earth minerals outside of China. Long-term, the firm doesn't think rare earth prices will decline below historical price levels, and thinks end users will find value.
Comments (4)
  • REEality
    , contributor
    Comments (77) | Send Message
     
    Historical prices...? What are you talking about?
    12 Jul 2013, 01:03 PM Reply Like
  • cmjf
    , contributor
    Comments (9) | Send Message
     
    He means histiricaaly low prices I assume!
    12 Jul 2013, 02:28 PM Reply Like
  • ggarcia51
    , contributor
    Comments (8) | Send Message
     
    DEFINITIVE byron capital is wrong do not know they are talking about or are speculating a lot very careful with these people
    13 Jul 2013, 04:03 AM Reply Like
  • REEality
    , contributor
    Comments (77) | Send Message
     
    Historically Ce and La sell below production cost... The only thing that has changed is that production has exploded and demand is flat. The bad news for Moly is that Ce and La are 83% of production and 98% of their production is classified a light RE (or low, lower value REs).

     

    How do you run a business with losses on 83% of production and ever smaller margins on the remainder -- as the prices on the remainder of REs moves back to historical levels...

     

    Remember, Molycorop built its business model on the prices of a massive bubble.

     

    There is no shortage of supply or production capacity. REs are about technology transfer, not profits.

     

    China has 330,000 tpy of 'official' on-line capacity. Know one knows how big the black market is, or could be if prices recovered.
    13 Jul 2013, 01:53 PM Reply Like
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