Molycorp bonds surge as peer Lynas gets equity funding

|By:, SA News Editor

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.