Molycorp Downgraded After Poor First Quarter, Stock at One-Year Low

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Molycorp’s stock plummeted on Friday to a one-year low of $3.01 after the Greenwood Village, Colo.-based company received a downgrade from “Neutral” to “Underweight” by JP Morgan Chase & Co. Molycorp closed at $3.05, recording an intra-day loss of 17.8% during the day. Earlier last week, the company reported higher losses and lower revenues on a yearly basis for its first quarter of fiscal year 2014 due to lower pricing of rare earths and magnetic powders.

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Molycorp’s travails are indicative of the problems faced by the entire rare earths mining industry as declines were seen on the weekly MMI for most of the computing and industrial metals.

The week’s biggest mover on the weekly Rare Earths MMI® was yttria, which saw a 7.3 percent decline to CNY 51,000 ($8,189) per metric ton. The price of lanthanum oxide declined 2.5 percent over the past week, settling at CNY 19,500 ($3,131) per metric ton. After a 2.4 percent decline, cerium oxide closed out the week at CNY 20,500 ($3,291) per metric ton.

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Europium oxide fell 1.2 percent over the past week to CNY 4,000 ($642.24) per kilogram. The price of praseodymium neodymium oxide fell 0.9 percent to CNY 325,000 ($52,182) per metric ton after rising 0.9 percent the week before. Following a 0.9 percent increase in the week prior, the price of praseodymium neodymium oxide fell 0.9 percent last week to CNY 325,000 ($52,182) per metric ton. Dysprosium oxide prices held steady from the previous week at CNY 1,650 ($264.92) per kilogram.

Prices for neodymium oxide remained constant, closing the week at CNY 325,000 ($52,182) per metric ton. Praseodymium oxide traded sideways last week, hovering around CNY 580,000 ($93,124) per metric ton. Rare earth carbonate remained essentially flat from the previous week at CNY 25,000 ($4,014) per metric ton. At CNY 18,500 ($2,970) per metric ton, the week finished with no movement for samarium oxide.

Terbium metal prices held steady from the previous week at CNY 4,600 ($738.57) per kilogram. Prices for terbium oxide remained constant, closing the week at CNY 3,200 ($513.79) per kilogram. Closing at CNY 290.00 ($46.56) per kilogram, yttrium remained unchanged for the week.

The Rare Earths MMI® collects and weights 14 global rare earth metal price points to provide a unique view into rare earth metal price trends. For more information on the Rare Earths MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.

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