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
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. 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.
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. 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.
Feb. 2, 2015, 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.
Jan. 23, 2015, 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.
Jan. 22, 2015, 2:07 PM| Jan. 22, 2015, 2:07 PM | 4 Comments
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.
Nov. 6, 2014, 9:14 AM
- Gainers: PLNR +74%. PESI +24%. SWIR +20%. MEET +13%. RVLT +11%. COT +11%. DATA +11%. ACAS +10%. NDLS +9%. KATE +8%. KATE +8%. WFM +9%. HZNP +6%. CECO +6%. DRYS +5%. TRUE +5%.
- Losers: AEZS -51%. SZYM -47%. SNMX -26%. GNW -24%. WWWW -22%. CSOD -19%. PHMD -17%. GERN -14%. MCP -12%. GNRC -11%. WAC -9%. QCOM -7%. Z -7%. PBR -5%.
Oct. 8, 2014, 12:45 PM
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.
Sep. 22, 2014, 12:46 PM
Sep. 19, 2014, 9:24 AM
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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