Seeking Alpha

Molycorp, Inc. (MCP)

  • Mon, Mar. 23, 8:42 AM
    • Molycorp (NYSE:MCP) +22.2% premarket after 60 Minutes aired a report last night on the importance of rare earth elements.
    • The basis of the report is that modern U.S. life - from smartphones to cars to defense missiles - depends on rare earth elements, but that China dominates the industry
    • Investors may be hoping the telecast sparks renewed interest in legislation in Congress calling for subsidies for the U.S. rare earths industry.
    • Also on watch: REE, AVL, GSM, GMO, OSN, REMX
  • Tue, Mar. 17, 11:45 AM
    • Molycorp's (MCP -33.3%) big Q4 earnings miss - its 12th straight quarterly loss - rekindles fears about the stock's ability to reclaim $1 and even the company's ability to continue as a going concern.
    • MCP reported negative cash flows of $75.8M, capital spending totaled $23.3M on a cash basis, and $211.7M in cash at of the end of 2014.
    • MCP says it produced a respective 691 metric tons and 1,328 metric tons of rare earth oxides at its Mountain Pass facility during Q3 and Q4, lower than expected because of production interruptions while continuing to optimize operations; the lower than expected production has continued through the first two months of 2015.
    • During its earnings conference call, MCP management confirmed it hired Miller Buckfire to strengthen its balance sheet but refused to take questions on its capital structure.
  • Mon, Feb. 2, 8:58 AM
    • Molycorp (NYSE:MCP+15.1% premarket after reporting that Q4 rare earth production at its Mountain Pass, Calif., facility rose 28% Y/Y and nearly doubled Q/Q.
    • MCP says Mountain Pass completed Q4 with 1,328 metric tons of rare earth oxide equivalent production vs. 1,034 mt in the year-ago quarter and 691 mt in Q3 2014; says per-unit cash production costs also declined sequentially.
    • FY 2014 production totaled 4,785 mt, compared to 3,473 mt in 2013.
    • Says the higher production volumes expected at Mountain Pass in 2015 should coincide with relatively strong demand it is seeing for its rare earth products.
  • Fri, Jan. 23, 10:39 AM
    • Molycorp (MCP -14.6%) extends yesterday's steep losses following a report that the rare earths supplier is nearing bankruptcy and hired a law firm for advice on a potential debt restructuring.
    • Today, DA Davidson downgrades shares to Neutral from Buy and its price target to to $0.38 from $4, reiterating the rumor and noting that production issues at the Mountain Pass facility remain a major concern; the firm believes MCP will need to execute and demonstrate production rates at or above 1,500 metric tons in the Dec. quarter to assure investors it is on the right track.
  • Thu, Jan. 22, 2:07 PM
    • Molycorp (MCP -22.2%) shares are plunging on rumors that the company is nearing bankruptcy.
    • The rare-earths producer is said to have hired the Jones Day law firm for advice on debt restructuring.
    • The former high-flier was at ~$79 in May 2011; shares hit an all-time low $0.29 about an hour ago.
  • Dec. 30, 2014, 3:29 PM
    • Molycorp (MCP +2.8%) is closing out a very rough 2014 on a strong note. Both Tuesday and Wednesday's gains have come on above-average volume.
    • Liquidity/solvency concerns have weighed heavily on the rare-earth miner's shares - it ended Q3 with $1.6B in debt and capital lease obligations to go with $314M in cash, and is expected to lose $0.34/share in Q4 and $0.62/share in 2015. A $207M debt maturity is due in June 2016.
    • Three weeks ago, S&P upgraded its rating for Molycorp's senior secured debt to CCC+ (still in junk territory), but also lowered its debt recovery expectations in the event of a default. A $38M debt-for-equity swap was carried out in November.
  • Nov. 6, 2014, 3:49 PM
    • Molycorp (MCP -11%) bonds fall to all-time lows after the company reported Q3 losses that were wider than analysts had forecast.
    • MCP’s $650M of 10% first-lien notes maturing June 2020 fell to as low as 65.9 cents on the dollar, the lowest since the securities started trading in March 2013, to yield 20.2%.
    • As part of MCP's 11th consecutive quarterly earnings loss, revenue declined 17% Y/Y to $124M from the same period a year ago.
    | Comment!
  • Nov. 6, 2014, 9:14 AM
  • Oct. 8, 2014, 12:45 PM
    | Comment!
  • Sep. 30, 2014, 7:45 AM
    • Molycorp (NYSE:MCP) +2.4% premarket on news that its expanded leach system has been placed into service at its Mountain Pass, Calif., facility.
    • MCP says the system expansion addresses one of the major production bottlenecks at Mountain Pass and is expected to boost rare earth production and lower operating costs once it is fully operational and sufficient supplies of hydrochloric acid are available.
    • While onsite production and market availability of HCl are expected to improve in Q4 and beyond, Q3 2014 rare earth production at Mountain Pass is not expected to exceed Q1 2014 levels.
    | 1 Comment
  • Sep. 22, 2014, 12:46 PM
    | Comment!
  • Sep. 19, 2014, 9:24 AM
    | Comment!
  • Sep. 19, 2014, 8:58 AM
    • Molycorp (NYSE:MCP) +5.3% premarket after Oaktree Capital Management discloses a 9.1% stake, or nearly 24.5M shares, in the company.
    • Last month, Oaktree agreed to provide MCP up to $400M in financing through credit facilities and the sale and leaseback of equipment at the company's Mountain Pass facility.
    • MCP shares had slumped to a new 52-week low yesterday, and have plunged 76% YTD.
  • Aug. 25, 2014, 12:46 PM
    | Comment!
  • Aug. 11, 2014, 11:59 AM
    • Molycorp (MCP -4.2%) is downgraded to Sell from Hold with a $2 price target, cut from $3, at Euro Pacific, which cites continuous price decreases in special earth elements and lagging production efficiency in Mountain Pass.
    • The firm notes how MCP has decreased its current account, burning through cash by nearly $80M/quarter trying to stay afloat with its price decreases and trouble in Mountain Pass.
    • MCP's Q2 average sales prices decreased to 1,049 tons at $16.8/kg from 974 tons at $10.3/kg in the year-earlier Q2.
  • Aug. 7, 2014, 9:21 AM
Visit Seeking Alpha's
MCP vs. ETF Alternatives
Company Description
Molycorp Inc manufactures custom engineered rare earth and rare metal products. The Company's reportable segments include resources chemicals and oxides magnetic materials and alloys and rare metals.