Molycorp surges after better than expected results
Rare earth producer Molycorp reported a third-quarter loss on Thursday, but investors liked top line growth that jumped 49% to $205.6 million
In after hours trade on Thursday Molycorp was changing hands for $8.68, up $0.62 or more than 7% as investors digested the company’s Q3 results.
The Colorado-based company sold 4,391 tonnes of total rare earth and rare metal products at a loss of $18.9 million or 19 cents a share on the back of higher production costs and significantly lower prices for its rare earth oxides.
Molycorp also took a once-off charge related to the $1.3 billion takeover of Neo Material Technologies, now known as Molycorp Canada, and inventory writedowns.
Molycorp – destined to become the number one producer of the 17 elements outside China – is aiming for an ultimate production capacity target of 40,000 tonnes per annum from its Mountain Pass in California.