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Molycorp, Inc.: Molycorp (NYSE: MCP) Reports Second Quarter 2014 Financial Results

2014-08-06 22:02:00
Ticker Giełda ISIC Kraj Miasto
MCP XNYS U.S.A. Greenwood Village






Greenwood Village, CO (August 6, 2014) - Molycorp, Inc. (NYSE: MCP) ("Molycorp"

or the "Company") today announced financial and operating results for the second

quarter 2014.



The Company reported second quarter product sales volume of 2,996 metric tons

(mt), a 15% decrease over the first quarter 2014, at an average selling price

("ASP") of $39.02/kg, a 16% increase over the preceding quarter's ASP of

$33.69/kg.



Net revenues for the second quarter were $116.9 million, a 1% decrease from the

first quarter 2014.  The Company reported a net loss of $0.37 per share for the

quarter. The Company reported a net loss of $0.29 per share for the quarter on

an adjusted non-GAAP basis.



Molycorp's Resources segment, comprised of its Mountain Pass, California rare

earth mine and processing facility, sold 974 mt of rare earth oxide ("REO")

equivalent products for $10.0 million in revenues. ASP for the quarter was

$10.30/kg. Production volume for the quarter was 1,639 mt, a 48% increase over

first quarter production of 1,111 mt. Cash cost for production dropped to

$16.54/kg, a 39% decrease over production cash costs of $27/kg in the previous

quarter.



The Company's Chemicals and Oxides segment sold 1,582 mt and reported $48.6

million in revenues. The slight decrease in volume was offset by higher ASP due

to a favorable increase of Nd and Pr in the product mix.



Its Magnetic Materials and Alloys segment sold 1,383 mt of magnetic powders.

Revenues for the segment were $54.4 million on ASP of $39.31/kg.



Finally, Molycorp's Rare Metals segment reported sales volume of 79 mt on

revenues of $15.9 million. ASP for the segment was $201.81/kg.



_______________________________

MOLYCORP ANNOUNCES COMMITMENT FOR A $400 MILLION FINANCING ARRANGEMENT



In a separate press release, the Company announced that it has entered into a

commitment letter for a $400 million financing arrangement with funds managed by

Oaktree Capital Management, L.P. ("Oaktree"). Under the arrangement, Oaktree

will provide Molycorp and certain of the Company's subsidiaries up to $400

million in secured financing through credit facilities and the sale and

leaseback of certain equipment at the Company's Mountain Pass facility (the

"Financings").  $250 million of the Financings will be available to be borrowed

at the closing of the Financings, with the remaining $150 million available

until April 30, 2016 if Molycorp satisfies certain financial and operational

conditions. The closing of the Financings is subject to the satisfaction of

certain customary closing conditions. More details are available in the Company

press release announcing this commitment.



_______________________________

SECOND QUARTER 2014 RESULTS



The Company reported consolidated net revenues of $116.9 million, a 1% decrease

over the first quarter of 2014.



During the second quarter, the Company sold 2,996 mt of product at an ASP of

$39.02/kg, and generated a gross loss of $16.6 million. This compares to sales

volumes of 3,518 mt at an ASP of $33.69/kg and a gross loss of $23.1 million

during the first quarter of 2014. The Company produced 1,639 mt of rare earth

oxides at its Mountain Pass facility during the second quarter, a 48% increase

over first quarter production. The Company continues to optimize operations,

ahead of certain de-bottlenecking projects.



Molycorp reported a loss attributable to common stockholders of $83.9 million,

or $0.37 per share. Adjusted loss per share of $0.29 in the second quarter does

not reflect out-of-ordinary business expenses, and certain other non-cash items.



The Company reported negative cash flows from operating activities of $72.5

million for the quarter ended June 30, 2014, and had $156.4 million in cash and

cash equivalents as of June 30, 2014.



During the three months ended June 30, 2014, Molycorp's capital expenditures

were $15.0 million on a cash basis.



_______________________________

CONFERENCE CALL TOMORROW AT 9:00 A.M. EASTERN STANDARD TIME



Molycorp will conduct a conference call on Thursday, August 7, 2014 to discuss

these results at 9:00 a.m. EST, hosted by Geoff Bedford, President and Chief

Executive Officer, and Michael Doolan, Executive Vice President and Chief

Financial Officer. Investors interested in participating in the live call from

the U.S. should dial +1 (800) 884-5695 and reference passcode number 14991030.

Those calling from outside the U.S. should dial +1 (617) 786-2960 and reference

the same passcode as above.



There will also be a simultaneous live audio webcast available on the Investor

Relations section of the Company's website at www.molycorp.com/investors. The

webcast will be archived on the website. A PowerPoint presentation that will be

broadcast live via webcast during the conference call will be made available on

the website immediately prior to the call.



_______________________________

NON-GAAP ADJUSTED NET LOSS, OIBDA and ADJUSTED OIBDA



Adjusted Net Loss excludes certain non-cash items and other out-of-ordinary

business expense and operational expansion items. The Company defines OIBDA as

operating income before depreciation, amortization and accretion. Adjusted OIBDA

consists of OIBDA excluding certain non-cash items and other out-of-ordinary

business expense and operational expansion items. Adjusted Net Loss, OIBDA and

Adjusted OIBDA are all non-GAAP financial measures. There have been no changes

in the calculation method of previously disclosed non-GAAP financial measures.

The Company's management believes adjusting out these items from Net Loss and

OIBDA, including but not limited to purchase accounting adjustments, stock-based

compensation, out-of-ordinary expenses/income, asset impairment charges and

other miscellaneous charges, is useful to investors because it provides an

overall understanding of the Company's historical financial performance and

future prospects. Management believes that Adjusted Net Loss, OIBDA and Adjusted

OIBDA are an indication of the Company's base-line performance. Exclusion of

these items permits evaluation and comparison of results for the Company's core

business operations, and it is on this basis that management internally assesses

the Company's performance.



# # #



FOR MORE INFORMATION:



Company Contacts:



Jim Sims, +1 (303) 843-8062

Vice President Corporate Communications

jim.sims@molycorp.com



Brian Blackman, +1 (303) 843-8067

Vice President Investor Relations

brian.blackman@molycorp.com





_______________________________

FINANCIAL STATEMENTS AND SUPPLEMENTARY TABLES



TABLE 1: BALANCE SHEETS



MOLYCORP, INC.

 Condensed Consolidated Balance Sheets (Unaudited)

(In thousands, except shares and per share amounts)



June 30, December 31,

  2014   2013

--------------- --------------

ASSETS



Current assets:



Cash and cash equivalents $ 156,372     $ 314,317



Trade accounts receivable, net 47,031     61,757



Inventory 182,022     171,783



Prepaid expenses and other current assets 33,867     29,210

--------------- --------------

Total current assets 419,292     577,067

--------------- --------------

Non-current assets:



Deposits 25,698     25,997



Property, plant and equipment, net 1,743,494     1,762,874



Inventory 25,934     25,329



Intangible assets, net 318,954     330,867



Investments 46,303     48,875



Goodwill 228,750     228,750



Other non-current assets 22,821     7,043

--------------- --------------

Total non-current assets 2,411,954     2,429,735

--------------- --------------

Total assets $ 2,831,246     $ 3,006,802

--------------- --------------

LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities:



Trade accounts payable $ 63,082     $ 84,449



Accrued expenses 47,005     48,501



Debt and capital lease obligations 14,230     16,362



Other current liabilities 4,386     4,063

--------------- --------------

Total current liabilities 128,703     153,375

--------------- --------------

Non-current liabilities:



Asset retirement obligation 16,523     16,966



Deferred tax liabilities 78,424     85,481



Debt and capital lease obligations 1,378,669     1,363,916



Other non-current liabilities 10,256     10,002

--------------- --------------

Total non-current liabilities 1,483,872     1,476,365

--------------- --------------

Total liabilities $ 1,612,575     $ 1,629,740

--------------- --------------





Stockholders' equity:



Common stock, $0.001 par value; 700,000,000

shares authorized at June 30, 2014 and

350,000,000 at December 31, 2013 245   241



Preferred stock, $0.001 par value; 5,000,000

shares authorized at December 31, 2013 -   2



Additional paid-in capital 2,207,938     2,194,405



Accumulated other comprehensive loss (7,412 )   (6,451 )



Accumulated deficit (1,010,435 )   (840,474 )

--------------- --------------

Total Molycorp stockholders' equity 1,190,336     1,347,723



Noncontrolling interests 28,335     29,339

--------------- --------------

Total stockholders' equity 1,218,671     1,377,062

--------------- --------------

Total liabilities and stockholders' equity $ 2,831,246     $ 3,006,802

--------------- --------------



TABLE 2: INCOME STATEMENTS AND EARNINGS PER SHARE



MOLYCORP, INC.

 Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except shares and per share amounts)





Second Second

  Quarter   First Quarter   Quarter



  2014     2014     2013

--------------- --------------- --------------

Revenues $ 116,907     $ 118,526     $ 136,112



Costs of sales:



Costs excluding depreciation and

amortization (113,399 )   (125,473 )   (135,724 )



Depreciation and amortization (20,079 )   (16,147 )   (18,424 )

--------------- --------------- --------------

Gross loss (16,571 )   (23,094 )   (18,036 )



Operating expenses:



Selling, general and

administrative (20,424 )   (17,956 )   (26,059 )



Depreciation, amortization and

accretion (7,257 )   (7,201 )   (8,278 )



Research and development (4,483 )   (2,766 )   (6,506 )

--------------- --------------- --------------

Operating loss (48,735 )   (51,017 )   (58,879 )

--------------- --------------- --------------

Other expenses:



Other expense 296     474     2,813



Interest expense, net of

capitalized interest (41,285 )   (35,639 )   (14,869 )

--------------- --------------- --------------

Loss before income taxes and

equity earnings (89,724 )   (86,182 )   (70,935 )



Income tax benefit 7,427     1,907     3,530



Equity in loss of affiliates (1,553 )   (1,723 )   (3,284 )

--------------- --------------- --------------

Net loss (83,850 )   (85,998 )   (70,689 )



Net income attributable to

noncontrolling interests (49 )   (63 )   (486 )

--------------- --------------- --------------

Net loss attributable to

Molycorp stockholders $ (83,899 )   $ (86,061 )   $ (71,175 )

--------------- --------------- --------------





 Earnings per share of common

stock:



Net loss attributable to

Molycorp stockholders $ (83,899 )   $ (86,061 )   $ (71,175 )



Dividends on Convertible

Preferred Stock -   (2,846 )   (2,846 )

--------------- --------------- --------------

Loss attributable to common

stockholders $ (83,899 )   $ (88,907 )   $ (74,021 )







Weighted average common shares

outstanding-basic 224,223,506   221,374,589   168,075,012

--------------- --------------- --------------

Basic loss per share: $ (0.37 )   $ (0.40 )   $ (0.44 )

--------------- --------------- --------------





Weighted average common shares

outstanding-diluted 224,223,506   221,374,589   168,075,012

--------------- --------------- --------------

Diluted loss per share: $ (0.37 )   $ (0.40 )   $ (0.44 )

--------------- --------------- --------------







TABLE 3: STATEMENTS OF CASH FLOWS



MOLYCORP, INC

Consolidated Statements of Cash Flows (Unaudited)

(In thousands)



  Six Months Ended June 30,

----------------------------

  2014     2013

-------------- -------------

Cash flows from operating activities:



Net loss $ (169,849 )   $ (108,842 )



Adjustments to reconcile net loss to net cash from

operating activities:



Depreciation, amortization and accretion 50,685     49,399



Deferred income tax benefit (14,712 )   (29,496 )



Inventory write-downs 36,863     47,958



Release of inventory step-up value 719     3,499



Stock-based compensation 2,288     794



Equity in results of affiliates 3,275     6,356



Other operating adjustments 4,396     (846 )



Net change in operating assets and liabilities (31,913 )   (42,863 )

-------------- -------------

Net cash used in operating activities (118,248 )   (74,041 )

-------------- -------------

Cash flows from investing activities:



Investment in joint ventures (703 )   (3,423 )



Capital expenditures (44,687 )   (264,726 )



Recovery from insurance claims 12,900     -



Other investing activities 395     (224 )

-------------- -------------

Net cash used in investing activities (32,095 )   (268,373 )

-------------- -------------

Cash flows from financing activities:



Repayments of debt (3,079 )   (27,283 )



Net proceeds from sale of common stock -     248,150



Issuance of 5.50% Convertible Notes -     165,600



Payments of preferred dividends (2,846 )   (5,693 )



Dividend paid to noncontrolling interests (1,135 )   (1,946 )



Other financing activities 164     (360 )

-------------- -------------

Net cash (used in) provided by financing

activities (6,896 )   378,468



Effect of exchange rate changes on cash (706 )   318

-------------- -------------

Net change in cash and cash equivalents (157,945 )   36,372



Cash and cash equivalents at beginning of the

period 314,317   227,790

-------------- -------------

Cash and cash equivalents at end of period $ 156,372     $ 264,162

-------------- -------------



TABLE 4: SEGMENT INFORMATION



Three months Magnetic Corporate Total

ended June Chemicals Materials Rare and other Molycorp,

30, 2014 Resources   and Oxides   and Alloys   Metals   (a)   Eliminations(b)   Inc.

--------------------------- ------------ ------------ ------------ ------------ ----------------- ------------

  (In thousands)



Revenues:



External $ 2,331     $ 45,437     $ 53,195     $ 15,944           $ -     $ 116,907



Inter-segment 7,706     3,195     1,165     -           (12,066 )   -

------------- ------------ ------------ ------------ ----------------- ------------

Total

revenues $ 10,037   $ 48,632   $ 54,360   $ 15,944       $ (12,066 )   $ 116,907

------------- ------------ ------------ ------------ ----------------- ------------

OIBDA $ (30,298 )   $ 4,836     $ 11,812     $ 740



Depreciation,

amortization

and accretion (17,009 )   (3,908 )   (4,261 )   (2,101 )

------------- ------------ ------------ ------------

Operating

(loss) income $ (47,307 )   $ 928   $ 7,551   $ (1,361 )   $ (9,083 )   $ 537   $ (48,735 )

------------- ------------ ------------ ------------

Other income                                     296



Interest

expense, net

of

capitalized

interest                         (41,285 )

------------

Loss before

income taxes

and equity

earnings                         $ (89,724 )

------------





Three months Magnetic Corporate Total

ended March Chemicals Materials Rare and other Molycorp,

31, 2014 Resources   and Oxides   and Alloys   Metals   (a)   Eliminations(b)   Inc.

--------------------------- ------------ ------------ ------------ ------------ ----------------- ------------

  (In thousands)



Revenues:



External $ 3,111     $ 40,271     $ 54,720     $ 20,424           $ -     $ 118,526



Inter-segment 12,453     6,285     1,218     -           (19,956 )   -

------------- ------------ ------------ ------------ ----------------- ------------

Total

revenues $ 15,564   $ 46,556   $ 55,938   $ 20,424       $ (19,956 )   $ 118,526

------------- ------------ ------------ ------------ ----------------- ------------

OIBDA $ (36,445 )   $ 3,299     $ 13,676     $ (70 )



Depreciation,

amortization

and accretion (13,091 )   (3,872 )   (4,237 )   (2,093 )

------------- ------------ ------------ ------------

Operating

(loss) income $ (49,536 )   $ (573 )   $ 9,439   $ (2,163 )   $ (7,109 )   $ (1,075 )   $ (51,017 )

------------- ------------ ------------ ------------

Other income                                     474



Interest

expense, net

of

capitalized

interest                         (35,639 )

------------

Loss before

income taxes

and equity

earnings                         $ (86,182 )

------------





Three months Magnetic Corporate Total

ended June Chemicals Materials Rare and other Molycorp,

30, 2013 Resources   and Oxides   and Alloys   Metals   (a)   Eliminations(b)   Inc.

--------------------------- ------------- ------------ ------------ ------------ ----------------- ------------

  (In thousands)



Revenues:



External $ 10,922     $ 34,789     $ 66,114     $ 24,287           $ -     $ 136,112



Inter-segment 6,665     6,692     -     -           (13,357 )   -

------------- ------------- ------------ ------------ ----------------- ------------

Total

revenues $ 17,587   $ 41,481   $ 66,114   $ 24,287       $ (13,357 )   $ 136,112

------------- ------------- ------------ ------------ ----------------- ------------

OIBDA $ (28,775 )   $ (9,585 )   $ 18,060     $ (695 )



Depreciation,

amortization

and accretion (11,629 )   (5,589 )   (7,422 )   (2,005 )

------------- ------------- ------------ ------------

Operating

(loss) income $ (40,404 )   $ (15,174 )   $ 10,638   $ (2,700 )   $ (9,953 )   $ (1,286 )   $ (58,879 )

------------- ------------- ------------ ------------

Other income                                     2,813



Interest

expense, net

of

capitalized

interest                         (14,869 )

------------

Loss before

income taxes

and equity

earnings                         $ (70,935 )

------------



a. Includes business development costs, personnel costs, stock-based

compensation, accounting and legal fees, occupancy expense, information

technology costs and interest expense.

b. Consist of inter-segment sales and gross profits elimination as well as

eliminations of lower of cost or market adjustments related to inter-segment

inventory.



TABLE 5: PRODUCT REVENUES, VOLUMES, ASP



Second First

  Quarter   Quarter   Second Quarter



Revenues (in thousands) 2014     2014     2013

----------------------------------------------------- -------------------------

Resources (1) $ 10,037     $ 15,564     $ 17,587



Chemicals and Oxides (2) 48,632     46,556     41,481



Magnetic Materials and

Alloys (3) 54,360   55,938   66,114



Rare Metals (4) 15,944     20,424     24,287



Inter-segment

eliminations (12,066 )   (19,956 )   (13,357 )

------------- ------------- -------------------------

Total Net Revenues $ 116,907     $ 118,526     $ 136,112

------------- ------------- -------------------------

Volumes (in metric tons)

--------------------------------------- ------------- -------------------------

Resources 974     988     1,049



Chemicals and Oxides 1,582     1,926     1,266



Magnetic Materials and

Alloys 1,383   1,374   1,485



Rare Metals 79     101     92



Inter-segment

eliminations (1,022 )   (871 )   (853 )



ASP per kilogram

--------------------------------------- ------------- -------------------------

Resources $ 10.30     $ 15.75     $ 16.77



Chemicals and Oxides $ 30.74     $ 24.17     $ 32.76



Magnetic Materials and

Alloys $ 39.31   $ 40.71   $ 44.52



Rare Metals $ 201.81     $ 202.21     $ 264.00







1. The Resources segment includes operations at our Mountain Pass facility

where we conduct rare earth minerals extraction and processing to produce:

purified unseparated light rare earth concentrates, or LREC; separated rare

earth oxides, including lanthanum, cerium and neodymium/praseodymium; heavy

rare earth concentrates, which include samarium, europium, gadolinium,

terbium, dysprosium and others; and a line of proprietary rare earth-based

water treatment products, including SorbX? and PhosFIX(TM).



2. The Chemicals and Oxides division includes: production of rare earths at

our operations at Molycorp Silmet;  separated heavy rare earth oxides and

other custom engineered materials from our facilities in Jiangyin, Jiangsu

Province, China; and production of rare earths, salts of REEs, zirconium-based

engineered materials and mixed rare earth/zirconium oxides from our facilities

in Zibo, Shandong Province, China. Rare earths and zirconium applications from

products made in this segment include catalytic converters, computers,

television display panels, optical lenses, mobile phones, electronic chips,

and many others.



3. The Magnetic Materials and Alloys segment includes the production of Neo

Powders(TM) through our wholly-owned manufacturing facilities in Tianjin,

China, and Korat, Thailand, under the Molycorp Magnequench brand. This

operating segment also includes manufacturing of neodymium and samarium magnet

alloys, other specialty alloy products and rare earth metals at our MMA

facility in Tolleson, Arizona. Neo Powders(TM) are used in the production of

high performance, bonded NdFeB permanent magnets, which are found in micro-

motors, precision motors, sensors, and other applications requiring high

levels of magnetic strength, flexibility, small size, reduced weight, and

energy efficient performance.



4. The Rare Metals segment produces, reclaims, refines and markets high value

niche metals and their compounds that include gallium, indium, rhenium,

tantalum, and niobium. Operations in this segment are distributed in several

locations: Quapaw, Oklahoma; Blanding, Utah; Peterborough, Ontario, Canada;

Sagard, Germany; Stade, Germany; Hyeongok Industrial Zone in South Korea; and

Sillamäe, Estonia. Applications from products made in this segment include

wireless technologies, LEDs, flat panel displays, turbines, solar power

catalysts, steel additives, electronics applications, and many others.







TABLE 6: NON-GAAP ADJUSTED NET LOSS, OIBDA and ADJUSTED OIBDA RECONCILIATION

 (In thousands, except shares and per share data)





Adjusted Net Loss



Second Second

  Quarter   First Quarter   Quarter



  2014     2014     2013

--------------- --------------- --------------

Net loss attributable to

Molycorp stockholders $ (83,899 )   $ (86,061 )   $ (71,175 )



Certain non-cash and other

items:



   Stock-based compensation 1,466     822     1,037



   Inventory write-downs

(Mountain Pass) 16,593   15,693   14,330



   Impact of purchase accounting

on cost of inventory sold 142   577   1,002



Out-of-ordinary items:



Water removal 1,239     8,102     4,964



Income tax effect of above

adjustments (49 )   (160 )   (4,425 )

--------------- --------------- --------------

Adjusted net loss (64,508 )   (61,027 )   (54,267 )



Dividends on Convertible

Preferred Stock -   (2,846 )   (2,846 )

--------------- --------------- --------------

Adjusted net loss attributed to

common stockholders $ (64,508 )   $ (63,873 )   $ (57,113 )

--------------- --------------- --------------

Weighted average common shares

outstanding 224,223,506   221,374,589   168,075,012

--------------- --------------- --------------

Adjusted net loss per share $ (0.29 )   $ (0.29 )   $ (0.34 )

--------------- --------------- --------------



OIBDA and Adjusted OIBDA



Second First Second

  Quarter   Quarter   Quarter



Consolidated 2014     2014     2013

---------------------------------------------------- ------------- ------------

Operating loss $ (48,735 )   $ (51,017 )   $ (58,879 )



Depreciation and amortization included

in costs of sales 20,079   16,147   18,424



Depreciation, amortization and

accretion 7,257   7,201   8,278

------------- ------------- ------------

OIBDA (21,399 )   (27,669 )   (32,177 )

------------- ------------- ------------





Adjusted OIBDA by Segment

----------------------------------------

Resources



OIBDA $ (30,298 )   $ (36,445 )   $ (28,775 )



Stock-based compensation 182     234     139



Inventory write-downs 16,593     15,693     14,330



Water removal 1,239     8,102     4,964

------------- ------------- ------------

Adjusted OIBDA - Resources $ (12,284 )   $ (12,416 )   $ (9,342 )

------------- ------------- ------------

Chemicals and Oxides



OIBDA $ 4,836     $ 3,299     $ (9,585 )



Stock-based compensation 211     193     78



Impact of purchase accounting on cost

of inventory sold 142   25   519

------------- ------------- ------------

Adjusted OIBDA - Chemicals and Oxides $ 5,189     $ 3,517     $ (8,988 )

------------- ------------- ------------

Magnetic Materials and Alloys



OIBDA $ 11,812     $ 13,676     $ 18,060



Stock-based compensation 179     144     82



Impact of purchase accounting on cost

of inventory sold -   (45 )   (16 )

------------- ------------- ------------

Adjusted OIBDA - Magnetic Materials

and Alloys $ 11,991   $ 13,775   $ 18,126

------------- ------------- ------------

Rare Metals



OIBDA $ 740     $ (70 )   $ (695 )



Stock-based compensation 39     22     12



Impact of purchase accounting on cost

of inventory sold -   598   499

------------- ------------- ------------

Adjusted OIBDA - Rare Metals 779     550     (184 )

------------- ------------- ------------

Corporate and other (8,171 )   (6,826 )   (9,170 )



Eliminations 537     (1,075 )   (1,286 )

------------- ------------- ------------

Adjusted OIBDA - Consolidated $ (1,959 )   $ (2,475 )   $ (10,844 )

------------- ------------- ------------





ABOUT MOLYCORP



Molycorp is the only advanced material manufacturer in the world that both

controls a world-class rare earth resource and can produce high-purity, custom

engineered rare earth products to meet increasingly demanding customer

specifications. A globally integrated manufacturer, the Company produces a wide

variety of specialized products from 13 different rare earths (lights, mids and

heavies), the transition metal yttrium, and five rare metals (gallium, indium,

rhenium, tantalum and niobium). With 26 locations across 11 countries, Molycorp

also produces rare earth magnetic materials through its Molycorp Magnequench

subsidiary, including neodymium-iron-boron ("NdFeB") magnet powders, used to

manufacture bonded NdFeB permanent rare earth magnets. Through its joint venture

with Daido Steel and the Mitsubishi Corporation, Molycorp manufactures next-

generation, sintered NdFeB permanent rare earth magnets. The Company also

markets and sells a line of rare earth-based water treatment products. For more

information please visit http://www.molycorp.com.



SAFE HARBOR STATEMENT REGARDING FORWARD-LOOKING STATEMENTS



This release contains forward-looking statements that represent Molycorp's

beliefs, projections and predictions about future events or Molycorp's future

performance. Forward-looking statements can be identified by terminology such as

"may," "will," "would," "could," "should," "expect," "intend," "plan,"

"anticipate," "believe," "estimate," "predict," "potential," "continue" or the

negative of these terms or other similar expressions or phrases. These forward-

looking statements are necessarily subjective and involve known and unknown

risks, uncertainties and other important factors that could cause Molycorp's

actual results, performance or achievements or industry results to differ

materially from any future results, performance or achievement described in or

implied by such statements.



Factors that may cause actual results to differ materially from expected results

described in forward-looking statements include, but are not limited to:  the

need to secure additional capital to implement Molycorp's business plans, and

Molycorp's ability to successfully secure any such capital, including the

ability to successfully complete the Financings; Molycorp's ability to optimize

production at its Mountain Pass rare earth mine and processing facility, which

we refer to as the Molycorp Mountain Pass facility, and the ability to develop

internal and external demand for REO and other downstream products, including

the ability to operate at commercial production rates and competitive cash

production costs, in each case within the projected time frame; the success of

Molycorp's cost mitigation efforts in connection with the optimization of the

Molycorp Mountain Pass facility, which, if unsuccessful, might cause its costs

to exceed budget; the final costs of Molycorp's planned capital projects, which

may differ from estimated costs; Molycorp's ability to achieve fully the

strategic and financial objectives related to the acquisition of Molycorp

Canada, including the acquisition's impact on Molycorp's financial condition and

results of operations; unexpected costs or liabilities that may arise from the

acquisition, ownership or operation of Molycorp Canada; risks and uncertainties

associated with intangible assets, including any future goodwill impairment

charges; market conditions, including prices and demand for Molycorp's products;

Molycorp's ability to control its working capital needs; foreign exchange rate

fluctuations; the development and commercialization of new products; unexpected

actions of domestic and foreign governments; various events which could disrupt

operations, including natural events and other risks; uncertainties associated

with Molycorp's reserve estimates and non-reserve deposit information, including

estimated mine life and annual production; uncertainties related to feasibility

studies that provide estimates of expected or anticipated costs, expenditures

and economic returns, REO prices, production costs and other expenses for

operations, which are subject to fluctuation; uncertainties regarding global

supply and demand for rare earths materials; uncertainties regarding the results

of Molycorp's exploratory drilling programs; Molycorp's ability to enter into

additional definitive agreements with its customers and its ability to maintain

customer relationships; Molycorp's sintered neodymium-iron-boron rare earth

magnet joint venture's ability to successfully manufacture magnets within its

expected timeframe; Molycorp's ability to successfully integrate other acquired

businesses; Molycorp's ability to maintain appropriate relations with unions and

employees; Molycorp's ability to successfully implement its vertical integration

strategy; environmental laws, regulations and permits affecting Molycorp's

business, directly and indirectly, including, among others, those relating to

mine reclamation and restoration, climate change, emissions to the air and water

and human exposure to hazardous substances used, released or disposed of by

Molycorp; and uncertainties associated with unanticipated geological conditions

related to mining; and the outcome of the current stockholder class action

litigation and derivative litigation, including any actions taken by government

agencies in connection therewith.



For more information regarding these and other risks and uncertainties that

Molycorp may face, see the section entitled "Risk Factors" of the Company's

Annual Report on Form 10-K for the year ended December 31, 2013 and of the

Company's Quarterly Reports on Form 10-Q. Any forward-looking statement

contained in this release or the Annual Report on Form 10-K or the Quarterly

Reports on Form 10-Q reflects Molycorp's current views with respect to future

events and is subject to these and other risks, uncertainties and assumptions

relating to Molycorp's operations, operating results, growth strategy and

liquidity. You should not place undue reliance on these forward-looking

statements because such statements speak only as to the date when made. Molycorp

assumes no obligation to publicly update or revise these forward-looking

statements for any reason, or to update the reasons actual results could differ

materially from those anticipated in these forward-looking statements, even if

new information becomes available in the future, except as otherwise required by

applicable law.







This announcement is distributed by GlobeNewswire on behalf of

GlobeNewswire clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and

other applicable laws; and

(ii) they are solely responsible for the content, accuracy and

originality of the information contained therein.



Source: Molycorp, Inc. via GlobeNewswire

[HUG#1847032]





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