Molycorp Reports First Quarter 2013 Results

FSC / Press Release 
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% percent 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 US, May 09, 2013 /FSC/ - Molycorp, Inc (MCP - NYSE), 
("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% percent 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.
http://hugin.info/155339/R/1700785/561403.pdf 
# # # 
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. 
To view the press release as a PDF file, please click on the following link:
http://www.usetdas.com/pr/molycorp05092013.pdf 
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