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Molycorp -16% as losses widen, rare earth metal prices drop

  • Molycorp (MCP -16.2%) after Q1 losses more than doubled as revenues were hurt by lower prices for rare earths and magnetic powders and lower sales volumes in its resources segment.
  • MCP’s Q1 volumetric sales totaled 3,518 metric tons, up from 3,274 metric tons in the year-ago period, but average selling price fell 24.6% to $33.69/kg.
  • MCP says it produced less material than expected at its Mountain Pass facility in California, citing interrupted production as it worked to optimize operations.
  • Cash and cash equivalents fell to $236M from $404M in the prior-year quarter; generated negative cash flows of $45.8M from its operational activities.
Comments (4)
  • caribsurfking
    , contributor
    Comments (37) | Send Message
     
    All those "experts" at the beginning of the year saying Molycorp was about to explode, sorry, it was implode!
    And they paid to make stock suggestions, seriously!
    8 May, 01:10 PM Reply Like
  • bones33
    , contributor
    Comments (286) | Send Message
     
    No brightness in that earnings report!
    8 May, 01:41 PM Reply Like
  • HonestJ
    , contributor
    Comment (1) | Send Message
     
    They are a bunch of thieves!!!!!
    8 May, 02:39 PM Reply Like
  • I need a bailout
    , contributor
    Comments (1322) | Send Message
     
    Not happy

     

    I started a position before earnings at $4.75, thinking that MCP was building a nice long base of support.

     

    Volumes up but product prices down.

     

    The China hoarding hype could be just that. Maybe there is huge oversupply of REE.

     

    Seems like MCP has enough cash to burn for a while. Im going to wait it out for another quarter given the RIO comment today that metal prices have reached bottom.
    9 May, 04:55 PM Reply Like
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