- Molycorp recently received a lifeline in the form of loans worth $400 million from Oaktree Capital.
- The financing will help the company survive for now and possibly attain its target of reaching full production capacity at its Mountain Pass mining facility.
- Molycorp has also struggled due to weaker prices, which came under further pressure this year after the WTO asked China to remove restrictions on rare earth exports.
- China has found other ways to restrict rare earth supplies, which means that the WTO ruling is not expected to have a major impact on pricing.
- Despite the recent developments, which are positive for Molycorp, I will remain on the sidelines.