Rare Earths MMI®: Molycorp Hires Restructuring Firm, Gets Downgraded

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Molycorp stock hit a 52-week low after ratings agency DA Davidson downgraded the stock on Friday to Neutral from Buy. Davidson said sufficient production at Molycorp’s Mountain Pass, Calif., site remains a major concern.

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The mining company, whose market valuation has faltered to $93 million from more than $6 billion in 2011, hired law firm Jones Day for advice on debt restructuring, a person familiar with the situation told Bloomberg Businessweek.

The person asked Bloomberg not to be named because the matter hasn’t been publicly disclosed. Jim Sims, a spokesman for the Greenwood Village, Colorado-based rare-earths producer, declined to comment on the hiring of an adviser.

Jones Day helped Molycorp secure $400 million of loans from Oaktree Capital Management LP last year, the person said. Debtwire reported Wednesday that the law firm was advising Molycorp on restructuring.

Dysprosium oxide improved by 0.6%, reaching CNY 1,560 ($248.64) per kilogram on the weekly Rare Earths MMI®. Following a steady week, prices for cerium oxide closed flat at CNY 12,500 ($1,992) per metric ton. Prices for europium oxide remained constant, closing the week at CNY 1,650 ($262.98) per kilogram.

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At CNY 13,000 ($2,072) per metric ton, the week finished with no movement for lanthanum oxide. Neodymium remained essentially flat from the previous week at CNY 356,000 ($56,740) per metric ton. At CNY 356,000 ($56,740) per metric ton, the week finished with no movement for neodymium. At CNY 285,000 ($45,424) per metric ton, the price of neodymium oxide did not change since the previous week.

Praseodymium oxide traded sideways last week, hovering around CNY 400,000 ($63,753) per metric ton. Rare earth carbonate prices held steady from the previous week at CNY 25,000 ($3,985) per metric ton. Closing at CNY 16,000 ($2,550) per metric ton, samarium oxide remained unchanged for the week. Prices for terbium metal remained constant, closing the week at CNY 4,000 ($637.53) per kilogram.

Following a steady week, prices for terbium oxide closed flat at CNY 3,350 ($533.93) per kilogram. At CNY 34,000 ($5,419) per metric ton, the week finished with no movement for yttria. At CNY 270.00 ($43.03) per kilogram, the price of yttrium did not change since the previous 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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