Molycorp shares tank on Q1 results
Rare earth miner Molycorp (NYSE: MCP) shares gave up 12% in after hours trade on Wednesday after first quarter results showed a net loss of $0.40 per share, below expectations.
Colorado-based Molycorp reported an 18.5% year on year decline in Q1 revenues against expectations of an uptick and despite a 10% jump in sales volume over the final quarter of last year to 3,518 tonnes.
That was due to average selling prices – falling 13% to $33.69/kg – continuing a protracted slump.
That compares to full year average selling prices for 2013 of $42.26 per kilogram from its Mountain Pass, California mine and processing plant.
Molycorp is a speculators' favourite and the closely watched stock regularly features among the most active on the New York stock exchange.
By the close of regular trading on Monday some 5.7 million shares had changed hands with the counter shedding 11.6% after hours hitting a low of $4.01 a share from the close of $4.55.
Molycorp's value is down 19% since the start of year and nowhere near its peak in 2011 above $70.