Molycorp bonds surge as peer Lynas gets equity funding


Molycorp (MCP) bonds rose to their highest level in more than a month after peer Lynas (LYSCF, LYSDY) sold shares, and "distressed investors looked at Lynas and said if they can raise money, Molycorp can too."

MCP, which has lost money for nine straight quarters and may run out of cash in another seven months or so if operations don’t improve, may benefit from new investments being made into the rare earth industry, a Loomis Sayles analyst says.

With fresh capital, investors see MCP’s Mountain Pass facility in California becoming fully operational later this year that would help the company grow.

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Comments (10)
  • D-struction
    , contributor
    Comments (165) | Send Message
     
    Uh huh....
    17 Jun 2014, 06:32 PM Reply Like
  • Caymagnate
    , contributor
    Comments (270) | Send Message
     
    I'll pass. That's about the shakiest reason to buy Molycorp I can imagine. Thanks, but no thanks.
    17 Jun 2014, 06:56 PM Reply Like
  • bd4uandu
    , contributor
    Comments (2074) | Send Message
     
    I am holding onto LYSDY. Hoping the worst is behind it. The new CEO has got a couple quarters to do a turn around.
    17 Jun 2014, 07:05 PM Reply Like
  • Truth_Investor
    , contributor
    Comments (374) | Send Message
     
    I think Molycorp should find other uses for their rare earth metals, maybe sell them to Apple as "conflict-free."
    17 Jun 2014, 07:27 PM Reply Like
  • Aries Wu
    , contributor
    Comments (406) | Send Message
     
    Apple do not use rare earth, apple component providers do but they do not own by apple.
    18 Jun 2014, 03:28 AM Reply Like
  • End Game
    , contributor
    Comments (27) | Send Message
     
    Excellent idea. I think that's their maket 'conflict free' rare earth production.
    Why buy from China and pretend you are "green".
    18 Jun 2014, 11:55 AM Reply Like
  • Aries Wu
    , contributor
    Comments (406) | Send Message
     
    Apple do not use rare earth
    20 Jun 2014, 08:46 AM Reply Like
  • End Game
    , contributor
    Comments (27) | Send Message
     
    Apple products, like the IPAD, does. They need to audit and "clean up" their supply chain.

     

    Molycorp is attempting to set a new environmental standard. That's an admirable thing.
    21 Jun 2014, 10:36 AM Reply Like
  • Aries Wu
    , contributor
    Comments (406) | Send Message
     
    Apple do not manufacture their devices, they outsourced to China where chinese labour piecing up their products. Yes, component used in apple devices used rare earth, but component makers do not own by apple and apple have no control over component makers (like chips, DRAM maker) i.e. apple do not have control over the use of rare earth.
    22 Jun 2014, 05:37 AM Reply Like
  • End Game
    , contributor
    Comments (27) | Send Message
     
    "We're working to reduct environmental impact. And we expect our suppliers to do the same."

     

    http://bit.ly/1p5VjUw
    22 Jun 2014, 09:05 AM Reply Like
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