Aug. 6, 2014, 4:07 PM
Jul. 18, 2014, 12:45 PM
Jul. 10, 2014, 12:19 PM
- Molycorp (MCP -8.5%) extends its descent into all-time lows, a day after reports that Apollo Global Management is adding to its MCP bond holdings, which would position the investment firm to take control of MCP in the event the company sought to restructure its $1.5B in debt.
- Shares enjoyed a momentary bump after D.A. Davidson came out positive on the company, saying after meeting with management it remains optimistic that MCP's production rates are improving; it has a Buy rating on the stock with a $7 price target.
Jul. 9, 2014, 12:47 PM
Jul. 9, 2014, 10:36 AM
- Apollo Global Management (APO -3%) is adding to its holdings of Molycorp (MCP -8.2%) bonds, positioning the investment firm to control MCP in case it seeks to restructure its $1.5B of debt, Bloomberg reports.
- APO bought $8.5M of MCP’s $230M of 3.25% convertible notes due 2016 in the March quarter and has since added to that amount, according to the report; as of March 31, APO held at least 22% of that class of securities.
- APO is betting holders of the convertible notes won’t receive a full recovery in a default, putting those lenders in control of a restructuring and in line to take over the company’s equity, the report says.
- The attempt at a backdoor takeover puts added pressure on MCP to find a solution to its cash burn or risk being taken over by APO and other bond holders, raising the potential for a dilutive event within weeks.
Jul. 2, 2014, 12:56 PM
Jul. 2, 2014, 9:15 AM
Jul. 2, 2014, 8:17 AM
- Molycorp (MCP) -11.7% pre-market after a negative Seeking Alpha blog claims MCP could run out of cash by Q1 2015 without a capital raise.
- MCP needs to raise ~$260M in additional capital in order to sustain itself, according to blogger New York Shock Exchange, who values the company at $1.60/share vs. the current $2.57 price.
Jun. 19, 2014, 7:41 PM
- Molycorp (MCP) -4.1% AH as Moody's downgrades MCP's corporate family rating to Caa2 from Caa1 and affirms the B3 rating on the company's senior secured notes.
- The downgrade reflects continued weakness in the rare earths pricing environment, ongoing negative free cash flows, weak liquidity and high leverage, the ratings firm says.
Jun. 19, 2014, 4:56 PM
- "The downgrade reflects continued weakness in rare earths pricing environment, ongoing negative free cash flows, weak liquidity and high leverage," says Moody's cutting Molycorp's (MCP) CFR rating to Caa2 from Caa1. "The [Mountain Pass] project's cost overruns left the company with absolute debt levels that may be unsustainable in a current price environment."
- Shares -5.8% AH
May. 9, 2014, 3:25 PM
- Molycorp (MCP -18.6%) shares plunge for a second straight day after Q1 results brought another substantial loss, marked by a deteriorating liquidity position and lower prices for rare earth metals, and little reason to suggest that operations would turn cash flow positive any time soon.
- Today, analysts at J.P. Morgan pile on by downgrading the stock to Underweight from Neutral, expecting another capital raise this year - logical timing, considering the rate MCP is burning through cash - made all the more urgent as the Mountain Pass ramp is happening more slowly than expected.
- Shares have lost a third of their market cap in two days.
May. 8, 2014, 12:59 PM
- Molycorp (MCP -16.2%) after Q1 losses more than doubled as revenues were hurt by lower prices for rare earths and magnetic powders and lower sales volumes in its resources segment.
- MCP’s Q1 volumetric sales totaled 3,518 metric tons, up from 3,274 metric tons in the year-ago period, but average selling price fell 24.6% to $33.69/kg.
- MCP says it produced less material than expected at its Mountain Pass facility in California, citing interrupted production as it worked to optimize operations.
- Cash and cash equivalents fell to $236M from $404M in the prior-year quarter; generated negative cash flows of $45.8M from its operational activities.
May. 8, 2014, 9:16 AM
May. 7, 2014, 5:45 PM
Mar. 26, 2014, 3:38 PM
- Analysts say rare earth elements will continue to fall this year after China loses a trade dispute over its export controls, as new mines boost output and while demand in high tech products disappoints.
- A price war could break out after the U.S., EU and Japan won their case over export restrictions they said gave Chinese companies an unfair competitive edge in key sectors, says Ryan Castilloux of Adamas Intelligence; China's "only tangible defense becomes competing head-to-head on price with emerging global producers."
- Investors already are concerned about excess supply as Molycorp (MCP -3%) and Lynas (LYSCF -12.5%) boost output at their new mines; MCP aims to boost output to 20K metric tons/year after producing ~1K metric tons in Q4 2013.
- Also: REE -0.6%, AVL -2.4%, GMO -3.7%.
Mar. 4, 2014, 2:56 PM
- Molycorp (MCP -2.1%) still faces ramping headwinds, Baird analyst Ken Kallo says as he reiterates a Neutral rating and $4 price target on the shares after the company's Q4 earnings call.
- Although MCP believes it can become EBITDA positive in H2 2014 through reducing costs and increasing production, the firm believes the company continues to face challenges in ramping its Mountain Pass facility, which has led to lower-than-expected production in Q1.
- Kallo says he would avoid purchasing shares until further cost reductions and stable production volumes are achieved.
MCP vs. ETF Alternatives
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.
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