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Molycorp, Inc. : MOLYCORP REPORTS FIRST QUARTER 2013 RESULTS



         Molycorp, Inc. : MOLYCORP REPORTS FIRST QUARTER 2013 RESULTS

HIGHLIGHTS:

  * The Company sold 3,274 metric tons (mt) of product at an average sales
    price, or ASP, of $44.71 per kilogram for the first quarter of 2013. Net
    revenues for the quarter were $146.4 million, up 9% from the fourth
    quarter of 2012. 

  * For the quarter, the Company reported a net loss of $0.33 per share. The
    Company reported a loss of $0.15 per share for the quarter on an adjusted
    non-GAAP basis.  

  * All key production assets at the Company's new Mountain Pass Rare Earth
    Facility ("Molycorp Mountain Pass facility") are operational and ramping
    up to the facility's initial planned annual run rate of 19,050 mt of rare
    earth oxides ("REO") equivalent by mid-year 2013.   

Greenwood Village, CO (May 9, 2013, 4:01 p.m. Eastern) - Molycorp, Inc. (NYSE:
MCP) ("Molycorp" or the "Company") today announced financial and operating
results for the first quarter of 2013.

FIRST QUARTER 2013 RESULTS

The Company reported consolidated net revenues of $146.4 million during the
first quarter of 2013, a 9% increase over the fourth quarter of 2012.  

The Company sold 3,274 mt of product at an ASP of $44.71 per kilogram and
generated a gross loss of $20.5 million during the quarter, as compared to a
gross loss $20.5 million during the fourth quarter of 2012.

Molycorp reported a loss attributable to common stockholders of $50.1 million,
or $0.33 per share. Adjusted loss per share of $0.15 in the first quarter
eliminates the effect of operational expansion items, out-of-ordinary business
expenses, and certain other non-cash items.

The Company reported negative cash flows from operating activities of $36.6
million during the quarter, and had $404.8 million in cash and cash
equivalents as of March 31, 2013.

During the first quarter, Molycorp's cash capital expenditures were $181.1
million. For the remainder of 2013, the Company estimates that its cash
capital expenditures will total approximately $250 million. Approximately $80
million of additional cash capital expenditures related to the Molycorp
Mountain Pass facility modernization and expansion project are anticipated to
be incurred in 2014, including discretionary expenditures required to expand
production beyond the initial planned annual run rate of 19,050 mt, if and
when market demand, product pricing, capital availability and financial
returns justify such production.

The Company reiterates its expectation that its financial performance for the
first half of 2013 will be weaker than the second half of 2012. This is due to
typical seasonality resulting in slow rare earth sales in the first quarter,
combined with the expectation that its Molycorp Mountain Pass facility will
not achieve full-scale commercial production until mid-year 2013.

"Our ongoing production ramp-up at Mountain Pass remains on course, and our
increasing production is allowing us to produce for end-use customers as well
as provide greater feedstock to our downstream, value-added processing
facilities," said Constantine Karayannopoulos, Molycorp's President and CEO.
"On the demand side, we are beginning to see signs of a return to more normal
levels of demand as the year progresses."

CONFERENCE CALL TODAY AT 4:30 P.M. EASTERN DAYLIGHT TIME

Molycorp will conduct a conference call today to discuss these results at 4:30
p.m. EDT, hosted by Mr. Karayannopoulos, President and Chief Executive
Officer, Michael Doolan, Executive Vice President and Chief Financial Officer,
and Geoff Bedford, Executive Vice President and Chief Operating Officer.
Investors interested in participating in the live call from the U.S. should
dial 1 (877) 474-9506 and reference passcode number 54985844. Those calling
from outside the U.S. should dial 1 (857) 244-7559 and use the same
confirmation number.  

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, EBITDA and ADJUSTED EBITDA

Adjusted net loss is a non-GAAP measure that excludes certain non-cash items
and other out-of-ordinary business expense and operational expansion items.
EBITDA is also a non-GAAP measure that excludes interest, tax, depreciation
and amortization. Adjusted EBITDA consists of EBITDA excluding certain
non-cash items and other out-of-ordinary business expense and operational
expansion items. The Company's management believes adjusting out these items,
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 adjusted net loss EBITDA and adjusted
EBITDA 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.

All financial tables from this release can be viewed here.

                                    # # #

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

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 and
heavies), five rare metals (gallium, indium, rhenium, tantalum and niobium),
and the transition metals yttrium and zirconium. With 27 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. Through its Molycorp Advanced Water Technologies subsidiary, the
Company markets and sells its proprietary, cerium-based advanced water
purification technology called SorbX(TM) for use in municipal and industrial
wastewater treatment, recreational water, and pool and spa water treatment
markets. 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 potential need to secure additional capital to implement Molycorp's
business plans, and Molycorp's ability to successfully secure any such
capital; Molycorp's ability to complete its planned capital projects, such as
its modernization and expansion efforts, including the achievement of an
initial annual production rate of 19,050 metric tons at the Mountain Pass rare
earth mine and processing facility, which we refer to as the Molycorp Mountain
Pass facility, and reach full planned production rates for REO and other
planned downstream products, in each case within the projected time frame; the
success of Molycorp's cost mitigation efforts in connection with the
modernization and expansion efforts at 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 successfully integrate Neo Material Technologies,
Inc. (now Molycorp Canada), with its operations; 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
stockholder class action litigation, derivative litigation and the SEC
investigation, 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, 2012 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. 

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This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters 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 Thomson Reuters ONE
HUG#1700785
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