SeekingAlpha  Aug 29  Comment 
By Shock Exchange: Molycorp, Inc. (NYSE:MCP) has raised capital three times in the past 18 months as losses and cash burn amid declining rare earth prices have gone unabated. My original short thesis was that any solution to its cash burn issue...
SeekingAlpha  Aug 29  Comment 
By Alpha World: Beleaguered rare earth minerals company, Molycorp Inc. (NYSE:MCP) recently received a lifeline from Oaktree Capital Management (NYSE:OAK). The company's financials have been hit hard by production bottlenecks at its Mountain Pass...
SeekingAlpha  Aug 26  Comment 
By Shock Exchange: Bondholders tend to be more sophisticated than equity holders. They also tend to represent institutions and are more plugged in than your average investor. That said, bondholders' behavior - buys, sells and how they price bonds...
TheStreet.com  Aug 25  Comment 
NEW YORK (TheStreet) --aTheStreet Ratings team rates Molycorp Inc astock a 'sell'awith a ratings score of D. Shares of the rare earth and metal company were falling -7.14% to $1.75 in late afternoon trading.a About 7.56 million shares of...
SeekingAlpha  Aug 22  Comment 
By Shock Exchange: Picture: The movie "Working Girl", Source: fanpix.net Molycorp, Inc. (NYSE:MCP) announced a net loss of $84 million and cash burn of $80 million for Q2 2014, leaving the company with $157 million of cash on hand. The...
SeekingAlpha  Aug 21  Comment 
By Shock Exchange: For a company whose market capitalization is under $1 billion, Molycorp, Inc. (NYSE:MCP) sure has a lot of rabid interest. Longs think the company offers an opportunity to get in on the ground floor of a rebound in rare earth...
SeekingAlpha  Aug 20  Comment 
By Shock Exchange: Major shareholders of Molycorp, Inc. (NYSE:MCP) have registered to sell up to 23.8 million shares (nearly 10%) of outstanding shares. According to a registration statement filed April 4, 2014: We have entered into a...
SeekingAlpha  Aug 15  Comment 
By Buffett Contrarian: Molycorp, Inc. (NYSE:MCP) had their Q2 2014 last week, and most of the focus has been on their financials. While financials are certainly important, now that their short-term cash flow issues are resolved I'd like to look at...
SeekingAlpha  Aug 15  Comment 
By Shock Exchange: Dan Akroyd from the movie "Trading Places" Everybody knows I am one of the biggest Molycorp, Inc. (NYSE:MCP) bears. I have been accused of everything from unnecessarily bashing the stock, to having a vendetta against the...
Benzinga  Aug 11  Comment 
In a report released Monday, Euro Pacific analyst Luisa Moreno downgrades Molycorp (NYSE: MCP) from Hold to Sell, while reducing its price target from $3 to $2. Analysts at Euro Pacific view Molycorp as unfavorable due to continuous price...


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]


  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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