Mar. 3, 2014, 5:15 PM
- Molycorp (MCP) -5.3% AH after Q4 results show another quarter of losses and a 17% Y/Y drop in revenues attributed to a shifting product mix and lower prices for rare earth minerals and lower volumes of its magnetic powders.
- FY 2013 revenues rose 5%, but negative cash flow from operations totaled $154M for the year and capital expenses totaled $379M; MCP forecasts 2014 capex will total $80M-$90M.
- Says the chlor-alkali plant at its Mountain Pass, Calif., rare earth facility has successfully completed commissioning and is now operational, which MCP expects to facilitate increased production volumes at lower production costs.
- No guidance offered.
Jan. 2, 2014, 9:12 AM
Jan. 2, 2014, 8:28 AM
- Molycorp (MCP) +5% premarket after DA Davidson names it as a Best Pick for 2014, saying MCP is positioned to become "the most prominent, vertically integrated, low-cost supplier of rare earth materials outside of China" following heavy modernization and expansion investments at the key Mountain Pass facility (Briefing.com).
- Application of rare earths in high-growth end markets such as semiconductors, hybrid and electric vehicles, wind turbines and lasers is expected to raise demand at a 9% CAGR through 2016, the firm says.
- Shares are Buy rated with a raised price target of $8 from $6 prior.
Dec. 27, 2013, 12:46 PM
Dec. 19, 2013, 9:38 AM
- Molycorp (MCP +2%) says the final unit of its multi-stage cracking plant at Mountain Pass has completed commissioning and is operational.
- The cracking plant is part of a multi-stage chemical process designed to increase the facility`s rare earth recovery rates, boost production throughput, and contribute to lower unit production costs.
- MCP says the cracking plant and other plants that comprise Mountain Pass will continue to be optimized to increase operating efficiencies and cut costs.
Dec. 3, 2013, 2:24 PM| 10 Comments
Nov. 8, 2013, 10:36 AM
- Molycorp (MCP +3.1%) is maintained with a Neutral rating and $5 price target at Goldman Sachs, which sees MCP's demand recovery as a positive though it was offset by weak pricing.
- Goldman likes the improved tone and steady fundamental progress in the Q3 results, including demand recovery for MCP's highest value product, magnetic rare earths (+20% Q/Q) and tangible cost reductions at Mountain Pass (-25% Q/Q) after several quarters of no progress.
- But the positives were somewhat offset by muted expectations for SorbX commercialization and diminished outlook for cerium sales in 2014 which, if not reconciled over the longer term, could negatively impact MCP's ability to hit sub-$10/kg production costs and/or ramp to phase two capacity.
Nov. 7, 2013, 6:22 PM
- Molycorp (MCP) -3.1% AH after missing Q3 earnings and revenue estimates but says demand and prices for rare earth products are recovering from the "worst quarter we have seen in recent memory."
- A Chinese government crackdown on illegal mining and smuggling of rare earths has helped "a semblance of stability" return to industry demand and prices, interim CEO Constantine Karayannopoulos says.
- Q3 revenue fell to $149M from $205M in the year-ago quarter but rose 9% Q/Q.
- The $1.25B expansion of MCP's main mine, Mountain Pass in California, remains on track for full commissioning in the current quarter.
Nov. 7, 2013, 4:10 PM
Oct. 28, 2013, 9:12 AM
Oct. 16, 2013, 9:31 AM
Oct. 16, 2013, 9:14 AM
- Molycorp (MCP) says its increased offering of 45M shares priced at $5/share, a 10% discount to yesterday’s close, raising $225M.
- MCP had outlined plans to offer $200M in stock to fund spending at its Mountain Pass, Calif., facility under construction.
- Shares -3.4% premarket, after yesterday's 21% drubbing.
Oct. 15, 2013, 12:45 PM
Oct. 15, 2013, 11:14 AM
- Molycorp (MCP -17.9%) is maintained with a Neutral rating at Goldman Sachs, but the firm cuts its 2013-15 earnings estimates and lowers its price target to $5 from $6 after MCP announced a $200M capital raise due to lower expectations of future revenue and cash flow.
- Goldman sees MCP's latest round of fundraising as an indication of continued operational challenges in ramping the Mountain Pass rare earths facility, and notes the $100M increase in the project's overall budget continues a series of cost overruns.
- But the firm believes the remaining targeted capex of $50M-$70M in Q4 and $70M in 2014 to complete Mountain Pass appears doable assuming a successful capital raise; also, improving rare earth fundamentals could be reflected moving into year-end results.
Oct. 15, 2013, 9:12 AM
Oct. 15, 2013, 8:21 AM
- Molycorp (MCP) says it plans to offer up to $200M of its common stock, or up to $230M if the underwriters exercise their option to purchase additional shares - a major dilution for a company with a $1.3B market cap.
- MCP said earlier this morning that it expects to generate a negative cash flow in its Q3 and its cash cushion has dwindled to insufficient levels.
- Shares now -20% premarket.
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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