QUOTE AND NEWS
Agoracom  Jul 22  Comment 
By Kitco News Tuesday July 21, 2015 10:19 The recent bankruptcy (chapter 11) filing by Molycorp, the U.S.’ only producer of rare earth elements, prompted many comments about the future of this market sector. Once an icon for independence...
newratings.com  Jul 3  Comment 
WASHINGTON (dpa-AFX) - Molycorp, Inc. (MCPIQ) said Thursday that it had received approval from the U.S. Bankruptcy Court on $22 million in interim debtor-in-possession financing provided by an affiliate of Oaktree Capital Management. The new...
Reuters  Jul 2  Comment 
Rare earths miner Molycorp Inc said it received U.S. bankruptcy court approval for interim financing of $22 million to support its operations.
Wall Street Journal  Jun 28  Comment 
Molycorp Inc.’s bankruptcy is poised to leave credit-investing giant Oaktree Capital Group LLC unharmed while rival Apollo Global Management LLC and other junior creditors lick their wounds.
Yahoo  Jun 26  Comment 
Molycorp Inc (MCPIQ.PK) failed to get approval from a U.S. Bankruptcy judge on Friday to borrow about $44 million at the rare earth producer's first bankruptcy hearing. Judge Christopher Sontchi agreed with the objection by an affiliate of Oaktree...
Forbes  Jun 26  Comment 
Sometimes, you just can’t climb every mountain.
Financial Times  Jun 25  Comment 
Molycorp seeks bankruptcy protection after price falls




 
TOP CONTRIBUTORS

Molycorp (NYSE:MCP) mines rare earth elements (REE) and sells them to business which use them for specified applications. The oxides, metals, alloys, and magnets the company makes are used in hybrid vehicles, wind turbines, fiber optics, lasers, and many defense applications. Molycorp is the largest rare earth oxides (REO) producer in the Western Hemisphere and is among the largest in the world.[1]

The consumers of the rare earth elements that Molycrop produces tend to fall into 4 main industries clean energy, high technology applications, military defense, and advanced water treatment.[2]The United States currently imports the majority of its rare earth elements from China, but there has been an increasing governmental push to decrease this dependency. Based on this, Molycorp has applied for a $280M loan guarantee from the Department of Energy. While the loan is still in its approval phases, the high usage of REEs in both clean and defense technology is expected to increases the chances that Molycorp will receive the loan.[3]

According to the Industrial Minerals Company of Australia, the demand for these types of rare earth elements is expected to increase by 4%-5% each year excluding China. In addition, many countries have announced that they plan to stockpile rare earth elements to ensure that they maintain a large enough supply to actively provide defense contracts as they become necessary.[2]

The company's initial public offering occurred on the 28th of July on the New York Stock Exchange. The deal priced at $14, which was below the $15-$17 initial price range. The company offered 28.1M shares, making the total deal $394M. The lead underwriters for the deal were J P Morgan Chase (JPM) and Morgan Stanley (MS).[4]

For FY2009 with year ended 31 December 2009, the company reported total revenues of $7 million. The company began in June of 2008, so there is no annual data to compare this performance. However, the company recorded only $2.1M in revenue in the 6 months of 2008 that it operated. Despite the rising revenue figures, net income for 2009 was -$28.6M. The company will likely remain with a net loss of $7.7M for the 3 months ended in March 2010.[5]

References

  1. MCP S-1A 2010 "Prospectus Summary" pg1
  2. 2.0 2.1 MCP S-1A 2010 "Industry Overview" pg 4
  3. Earth2Tech "Molycorp Betting on IPO to Open Federal Purse for Rare Earth" 26 July 2010
  4. Renaissance Capital - IPO "Molycorp estimates IPO price of $14 per share" 29 July 2010
  5. MCP S-1A 2010 "Summary Consolidated Financial Data" pg 14
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