Is Molycorp Bottoming?
Fabrizio Valerii • 32 Comments
Fabrizio Valerii • 32 Comments
Molycorp: Poised To Move Higher Still
Jason Bond • 40 Comments
Jason Bond • 40 Comments
Jul. 2, 2015, 8:43 AM
- In an about-face, Molycorp (OTCPK:MCPIQ) has chosen bankruptcy financing from lender Oaktree Capital over a competing offer from secured bondholders, setting off a new round of court fights.
- Terms of the Oaktree financing require MCP to mothball its money-losing Mountain Pass, Calif., rare earths facility, and sell the money-making Neo Material Technologies operations.
- Bondholders say MCP needs to keep Neo to remain viable over the long haul, and that the Oaktree financing would end MCP’s hopes of surviving as a unified company and lead to a sale designed to hand Neo over to Oaktree.
- MCP filed for chapter 11 bankruptcy protection last week.
Jun. 26, 2015, 3:11 PM
- Molycorp (NYSE:MCP) has failed to gain approval from a U.S. bankruptcy judge to borrow $225M at the company's first bankruptcy hearing.
- The judge reportedly agreed with the objection by an affiliate of Oaktree Capital Management that argued MCP could not justify its need for the money, which would deepen the company's insolvency.
Jun. 25, 2015, 4:08 AM
- Molycorp (NYSE:MCP) has filed for Chapter 11 bankruptcy protection along with its North American subsidiaries to restructure $1.7B of debt in its U.S. and Canadian operations.
- The company has also obtained agreement for up to $225M in new debtor-in-possession financing.
- The plan marks a dramatic turn for Molycorp, which rode temporary concerns of a shortage in rare earths elements to a $6B market capitalization in 2011, but has since then faced an oversupplied market.
- Previously: Molycorp to file for bankruptcy protection (Jun. 04 2015)
Jun. 15, 2015, 10:23 AM
- Molycorp (MCP +11.9%) says it will take advantage of a 30-day grace period on a $3.36M semiannual interest payment due today related to its 3.25% senior unsecured convertible notes due 2016, its second delay of a loan payment in two weeks.
- MCP says it plans to evaluate various options for restructuring its debt load, and that the decision will not trigger any cross-default provisions in other outstanding debt before the grace period ends and should not affect current operations.
- Earlier this month, WSJ reported that MCP was planning to file for Chapter 11 bankruptcy protection.
Jun. 4, 2015, 2:10 AM
- Molycorp (NYSE:MCP) plans to file for Chapter 11 bankruptcy protection as soon as this month, after skipping a $32M bond interest payment this past Tuesday, WSJ reports.
- The plan marks a dramatic turn for Molycorp, which rode temporary concerns of a shortage in rare earths elements to a $6B market capitalization in 2011. Since then, China has relaxed restrictions on exports of rare earths, oversupplying the market.
- Previously: S&P downgrades Molycorp, considers default move occurred (Jun. 02 2015)
Jun. 2, 2015, 3:59 PM
- Molycorp's (MCP -3.2%) corporate credit rating and senior secured and senior unsecured issue-level ratings are downgraded to D by Standard & Poor's after the company elected not to pay the $32.5M interest payment on its 10% senior secured notes due 2020.
- A payment default has not occurred under the indenture governing the notes, which provide a 30-day grace period, but S&P says it considers a default to have occurred, as it does not expect a payment to be made within the stated grace period given MCP's heavy debt burden.
- S&P says MCP has insufficient liquidity to operate beyond the next few months as it works with creditors to restructure its balance sheet.
Jun. 1, 2015, 7:39 AM
- Molycorp (NYSE:MCP) is expected to announce it will skip a $32.5M loan payment, triggering a 30-day grace period that could lead to a bankruptcy filing before the end of June, WSJ reports.
- MCP has suffered three straight years of quarterly losses, has $1.7B in debt, and has been able to generate only slightly more than half its goal of producing 20K metric tons/year at its Mountain Pass, Calif., rare earths mine.
- MCP -24.4% premarket.
May 7, 2015, 8:17 AM
- Molycorp (NYSE:MCP): Q1 EPS of -$0.28 misses by $0.11.
- Revenue of $106M (-10.5% Y/Y) beats by $2M.
- Shares -3% PM.
May 5, 2015, 4:34 PM
- Molycorp (NYSE:MCP) is considering a proposal from senior creditors that would swap at least some of the company's bonds for equity as it struggles to manage $1.6B of debt, Bloomberg reports.
- The plan, which would cut MCP’s debt load and interest cost, reportedly is based on the creditor group’s expectation that the securities would be impaired in a restructuring while the company’s lower-ranking 3.25% convertible notes due in June 2016 would get wiped out.
- The first-lien bondholders are conducting due diligence on MCP’s business, with a focus on how fast its Mountain Pass mining and processing facility in California could ramp up production, according to the report.
Apr. 24, 2015, 12:47 PM
- China’s decision to scrap export quotas and taxes on rare earth elements may boost stalled demand for the products, Lynas (OTCPK:LYSCF, OTCQX:LYSDY) CEO Amanda Lacaze tells Bloomberg.
- Users have been drawing down on stockpiles while awaiting clarity over China’s policy on the export of the elements, Lacaze says.
- China, which produces ~85% of global supply, announced yesterday it will remove export tariffs on rare earths beginning May 1.
- Lynas, which said March was the first month in the company’s history in which it was cash flow positive, is seeking to restructure its debt before September, the CEO says.
- Relevant tickers: MCP, REE, AVL, GSM, GMO, OSN, REMX
Apr. 23, 2015, 5:47 AM
- China will scrap export duties on rare earths and some metal products.
- Export duties will be removed on a wide variety of metal products, including those on rare earths, molybdenum, tungsten and some aluminum products, effective May 1.
- Beijing is attempting to boost exports, which fell 15% year-over-year in March.
- Currently, China levies export duties between 15% and 20% on rare earths products while molybdenum products carry export duties of 5% to 20%.
- Stocks: MCP, REE, AVL, GSM, GMO, OSN, REMX
Apr. 16, 2015, 7:50 AM
- JPMorgan views the rally in Molycorp (NYSE:MCP) shares yesterday (+77%) as "way overdone."
- Keeping an Underweight rating on the stock, JPMorgan believes Siemens will likely source rare earths from multiple suppliers and that Molycorp will still need to undergo an expensive restructuring over the next 12 months.
- MCP is still flying higher today, up 15.8% premarket.
- Previously: Molycorp skyrockets after announcing Siemens deal (Apr. 15 2015)
Apr. 15, 2015, 7:34 AM
- Molycorp (NYSE:MCP) is soaring 49.2% premarket after it was chosen by Siemens (OTCPK:SIEGY) to supply rare earth materials over the next 10 years for incorporation into the latter's high-efficiency wind turbine generators.
- MCP will supply the rare earth materials to Shin-Etsu Chemical (OTCPK:SHECY), which will produce the rare earth magnets Siemens intends to utilize in its turbines.
Mar. 23, 2015, 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
Mar. 19, 2015, 8:10 AM
- A group of Molycorp’s (NYSE:MCP) junior bondholders led by Apollo Global Management reportedly is close to hiring Blackstone and the Paul Weiss law firm to advise them on restructuring talks with the miner.
- The talks are said to focus on addressing the maturity of MCP's convertible bond debt, including the possibility of exchanging it for equity; MCP has ~$1.6B in borrowings.
- MCP earlier his week reported its 12th straight quarterly loss, saying it may not be able to continue as a going concern if it cannot restructure its debt.
Mar. 17, 2015, 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.
Molycorp is the only advanced material manufacturer in the world that both controls a world-class rare earth resource and can produce high-purity, custom engineered rare earth products to meet increasingly demanding customer specifications. With 25 locations across 10 countries, the Company... More
Sector: Basic Materials
Industry: Industrial Metals & Minerals
Country: United States
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