Rare Earths MMI®: Molycorp Misses Estimates, May Be Delisted

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After the markets closed Monday, Molycorp Inc.  reported its fourth-quarter financial results. The rare earths company had a net loss of $0.39 per share on $116.2 million in revenue for the fourth quarter. That compared to Thomson Reuters consensus estimates of a net loss of $0.26 per share on $104 million in revenue.

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Meanwhile, dysprosium oxide showed the biggest week-over-week price spike on MetalMiner’s weekly Rare Earths MMI® (for full prices, log in or join as a MetalMiner member at the bottom of this article).

The company did, however, report higher production volumes in the fourth quarter of 2014 at its Mountain Pass, Calif., rare earth facility, with 1,328 metric tons of rare earth oxide equivalent production. That compares to 1,034 mt in the fourth quarter of 2013 and 691 mt in the third quarter of 2014. Full year 2014 production at Mountain Pass totaled approximately 4,769 mt, compared to 3,473 mt in 2013.

Molycorp reported consolidated net revenues of $475.6 million, a 14% decrease as compared to the full year 2013. The decrease in revenues was largely driven by softened rare earth pricing.

Per-unit cash production costs at Mountain Pass declined in the fourth quarter of 2014 to $21.02 per kilogram, a 38% decrease over third quarter 2014 costs of $33.80 per kilogram.

The results paint a grim picture for Molycorp, including the perspective that the company may not be able to make the $1 per share mark and will have to face delisting by New York Stock Exchange, according to Reuters.

Prices for dysprosium oxide saw the biggest increase on the weekly Rare Earths MMI® this week, rising 5.4% and settling at CNY 1,950 ($311.41) per kilogram. Europium oxide prices climbed to CNY 1,950 ($311.41) per kilogram, up from CNY 1,850 ($295.32) a week ago. Terbium metal rose 3.8% over the past week to CNY 5,400 ($862.36) per kilogram.

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With a 3.7% climb, terbium oxide claimed the week’s largest gain, settling at CNY 4,250 ($678.71) per kilogram. Finishing at CNY 410,000 ($65,475) per metric ton for the week, neodymium climbed 3.5% increase. One of the big movers this week was neodymium, which shot up 3.5% to reach CNY 410,000 ($65,475) per metric ton. Over the past week, neodymium oxide rose 3.2% to CNY 325,000 ($51,901) per metric ton.

Praseodymium oxide rose 1.2% over the past week to CNY 420,000 ($67,072) per metric ton. Closing at CNY 13,500 ($2,156) per metric ton, cerium oxide remained unchanged for the week. At CNY 13,500 ($2,156) per metric ton, the price of lanthanum oxide did not change since the previous week. Rare earth carbonate remained essentially flat from the previous week at CNY 25,000 ($3,992) per metric ton.

Prices for samarium oxide remained constant, closing the week at CNY 18,000 ($2,875) per metric ton. At CNY 35,000 ($5,589) per metric ton, the week finished with no movement for yttria. Prices for yttrium remained constant, closing the week at CNY 270.00 ($43.12) per kilogram.

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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