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.
Oct. 15, 2013, 7:43 AM
- Molycorp (MCP) -13.8% premarket after disclosing it expects to generate significantly lower than expected revenue and cash flow, and plans to raise additional financing to ensure adequate funding for capital needs, debt service and other working capital needs.
- MCP says its cash cushion has dwindled to a level below what it considers sufficient to ensure no substantial concern about the ability to finance.
- MCP also says it will be unable to sell a substantial portion of the cerium production from its main mine, Mountain Pass in California, in 2014.
Oct. 14, 2013, 5:46 PM
Oct. 8, 2013, 7:43 AM
- Molycorp (MCP) names Geoff Bedford as its next President and CEO, effective Dec. 2; he will replace interim President/CEO Constantine Karayannopoulos, who will continue as vice chairman of the MCP board.
- Bedford is MCP's current Chief Operating Officer and a 14-year rare earth industry veteran.
- Separately, MCP amends a securities purchase agreement, allowing Molymet to own up to 27.5% of MCP outstanding common stock.
- Shares +2.8% premarket.
Oct. 2, 2013, 9:11 AM
Oct. 2, 2013, 8:27 AM
- Molycorp (MCP) +6.9% premarket after announcing that the chloralkali plant at Mountain Pass, Calif., is now mechanically complete and full-scale commissioning operations have begun.
- The plant will recycle wastewater and produce hydrochloric acid and caustic soda used as part of the rare earth separations process.
- Once fully operational and optimized, the chloralkali plant is expected to help the facility achieve its cash production cost targets, which MCP believes will make it competitive with the lowest cost producers globally.
- The final unit of its multi-stage cracking plant at Mountain Pass also is now mechanically complete and is being commissioned.
Sep. 24, 2013, 9:54 AM
- Rare earth stocks (REMX) start strong after reports overnight say China is likely to purchase billions of yuan of rare earth minerals starting next month to bolster its strategic reserves.
- Six large rare-earth producers - including Baotou Steel, China's largest rare earth producer by output - are on the list for the purchasing program, which was launched last year.
- Also, one of China’s largest rare earth producers says it plans to raise funds through private placement to build a plant with the capacity to produce 7K tons/year of rare earth oxides.
- MCP +3%, REE +3.7%, AVL +8.8%.
Sep. 17, 2013, 10:36 AM| 2 Comments
Aug. 9, 2013, 10:48 AM
- Molycorp (MCP -10.5%) shares slide after disappointing Q2 results, but Goldman Sachs believes fundamentals are nearing a bottom and maintains its Neutral rating and $6 price target.
- The firm notes several positive developments during the quarter, including normalizing REO demand as customer inventory destocking appears to have subsided and H2 order patterns are on the mend.
- Goldman says it's not time to pull the trigger, pending clarity around MCP's expected Sept. closing on a $125M revolver and commissioning of its chlor-alkali facility, a key factor in achieving targeted sub-$10/kg production costs and profitability.
Aug. 9, 2013, 9:17 AM
Aug. 8, 2013, 5:43 PM
Aug. 8, 2013, 4:48 PM
- Molycorp (MCP) -7.5% AH after reporting a wider Q2 loss even as revenue rose, as sales prices dropped sharply.
- Loss attributable to common shareholders was $0.44/share vs. a loss of $0.71 a year earlier when fewer shares were outstanding; excluding costs associated with its expansion and other items, the loss widened to $0.36/share from $0.03 a year ago.
- Average selling price for MCP’s rare metals was $272.14/kg vs. $187.35 a year ago, while rare metals production was flat.
- Had $264M cash on hand at the end of Q2; expects to spend ~$432M on capex this year vs. last year's $790M spent.
- Says it is seeing increasingly bullish signals from customers across several segments for product demand, which will coincide with higher production capacity at Mountain Pass.
Aug. 8, 2013, 4:08 PM
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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