Molycorp to offer $200M of stock, shares -20%


Molycorp (MCP) says it plans to offer up to $200M of its common stock, or up to $230M if the underwriters exercise their option to purchase additional shares - a major dilution for a company with a $1.3B market cap.

MCP said earlier this morning that it expects to generate a negative cash flow in its Q3 and its cash cushion has dwindled to insufficient levels.

Shares now -20% premarket.

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Comments (10)
  • The Geoffster
    , contributor
    Comments (4291) | Send Message
     
    Dilution solution.
    15 Oct 2013, 08:23 AM Reply Like
  • Grand Nagus Kelly
    , contributor
    Comments (1837) | Send Message
     
    Why do people buy this jive turkey company. I learned the hard way last year and nobody listens to me.
    15 Oct 2013, 08:44 AM Reply Like
  • nicolò
    , contributor
    Comments (60) | Send Message
     
    Rare earths are on new lows......
    15 Oct 2013, 08:58 AM Reply Like
  • Bob de'Long
    , contributor
    Comments (701) | Send Message
     
    The MCP jerks keep selling stock to pay their fat salaries are perks.
    15 Oct 2013, 09:58 AM Reply Like
  • CDM Capital
    , contributor
    Comments (457) | Send Message
     
    $MCP continues to ring the shareholder cash register over & over again... In the last 3 years they have diluted shareholders by over $1.3 billion.
    15 Oct 2013, 10:20 AM Reply Like
  • Jason Burack
    , contributor
    Comments (2147) | Send Message
     
    Mining is a very difficult business to begin with and a rare earth mine this large has never been attempted before. They are making progress towards profitability. I'm not in the stock yet but they could be profitable as early as Q4. The sad part is none of the other rare earth miners are doing any better in terms of building a profitable mine. Lynas is struggling too. Great Western Minerals is 2 years behind its original time frame as well and they need a lot more capital.
    15 Oct 2013, 10:26 AM Reply Like
  • Grand Nagus Kelly
    , contributor
    Comments (1837) | Send Message
     
    You are wise to not be in MCP Jason. Good luck should you decide it's worth it one day.
    15 Oct 2013, 10:44 AM Reply Like
  • Jason Burack
    , contributor
    Comments (2147) | Send Message
     
    I bought it right after IPO and rode it to 80. I have not been in the stock for awhile though.
    15 Oct 2013, 10:51 AM Reply Like
  • RhodeNav
    , contributor
    Comments (250) | Send Message
     
    OMG!! OMG!! They need more money to have finally that Mountain Pass facility to start and generate cash...And what? 20% off in an hour?! C'mon...Or may be there was another secret Russia-Belorus cartel controlling 40% of REM market that broke down ??
    15 Oct 2013, 12:19 PM Reply Like
  • User 195396
    , contributor
    Comments (446) | Send Message
     
    ok-dumped this jive turkey at a fairly sizable loss;
    -20% about does it for me-prob should have waiting a couple of days to let smoke clear but wanted to get rid of the putrid taste in my mouth.

     

    BTW, for you Washington Redskin fans, new name search to replace "redskins" now has developed to Washington Warriers but most close to the search want to drop "Washington" to save further embarassment.
    15 Oct 2013, 03:19 PM Reply Like
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