Molycorp target lowered to $5, EPS outlook slashed at Goldman

Molycorp (MCP -17.9%) is maintained with a Neutral rating at Goldman Sachs, but the firm cuts its 2013-15 earnings estimates and lowers its price target to $5 from $6 after MCP announced a $200M capital raise due to lower expectations of future revenue and cash flow.

Goldman sees MCP's latest round of fundraising as an indication of continued operational challenges in ramping the Mountain Pass rare earths facility, and notes the $100M increase in the project's overall budget continues a series of cost overruns.

But the firm believes the remaining targeted capex of $50M-$70M in Q4 and $70M in 2014 to complete Mountain Pass appears doable assuming a successful capital raise; also, improving rare earth fundamentals could be reflected moving into year-end results.

From other sites
Comments (1)
  • NC-Investor75
    , contributor
    Comments (9) | Send Message
    Goldman oversees the secondary!
    20 Oct 2013, 11:15 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs