Molycorp Reports Second Quarter 2013 Results

FSC / Press Release 
Molycorp Reports Second Quarter 2013 Results 
Greenwood Village, CO US, August 08, 2013 /FSC/ - Molycorp, Inc (MCP - New
York), 
HIGHLIGHTS: 
. Total volume amounted to 3,039 metric tons (mt) at an average selling price
(ASP) of $45.04 per kilogram for the second quarter of 2013. Net revenues for
the quarter were $136.9 million. 
. For the quarter, the Company reported a net loss of $0.44 per share. The
Company reported a net loss of $0.36 per share for the quarter on an adjusted
non-GAAP basis. 
. The Mountain Pass facility successfully demonstrated an operating capacity in
excess of 15,000 mt per year of rare earth oxide (REO) equivalent, making it one
of the largest operating rare earth processing facilities in the world. 
. In Molycorp's Magnetic Materials and Alloys segment, volume of Magnequench
bonded Neo Powders(tm) powders and other alloys increased 21% from the first
quarter, and realized pricing increased 3% to drive revenues to $66.1 million, a
21% increase over the same period. 
Greenwood Village, CO (August 8, 2013, 4:01 p.m. Eastern) - Molycorp, Inc.
(NYSE: MCP) ("Molycorp" or the "Company") today announced financial and
operating results for the second quarter of 2013. 
SECOND QUARTER 2013 RESULTS 
The Company reported consolidated net revenues of $136.9 million during the
second quarter of 2013, a 6% decrease over the first quarter of 2013.  The
decline in revenues was primarily attributable to lower product volumes and
slightly lower ASPs. 
During the second quarter, the Company sold 3,039 mt of product at an ASP of
$45.04 per kilogram and generated a gross loss of $18.5 million, as compared to
volume sales of 3,274 mt and revenues of $146.4 million, resulting in a restated
gross loss of $4.5 million during the first quarter of 2013. On August 8, 2013,
the Company filed a current report on Form 8-K to announce that it intends to
file an amended quarterly report on Form 10-Q/A for the three months ended March
31, 2013. 
Molycorp reported a loss attributable to common stockholders of $74.0 million,
or $0.44 per share. Adjusted loss per share of $0.36 in the second quarter 2013
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 $74.0
million during the first half of 2013, and had $264.2 million in cash and cash
equivalents as of June 30, 2013. 
During the six months ended June 30, 2013, Molycorp's capital expenditures were
$264.7 million on a cash basis. For the remainder of 2013, the Company estimates
that its capital expenditures will total approximately $167.0 million. 
The Company's Mountain Pass facility successfully demonstrated an operating
capacity in excess of 15,000 mt per year of rare earth oxide (REO) equivalent,
making it one of the largest operating rare earth processing facilities in the
world. 
The Mountain Pass facility's chloralkali plant, which will recycle wastewater
and regenerate chemical reagents needed for rare earth separations, remains on
track for mechanical completion and commissioning in the second half of 2013. 
After the chloralkali plant is optimized, Company officials expect to achieve
the facility's cash production cost targets. 
"We are seeing increasingly bullish signals from customers across several
segments for product demand, and increased demand will coincide nicely with
increased production capacity at Mountain Pass and declining production costs,"
said Constantine Karayannopoulos, President and CEO. "As we continue to optimize
operations at Mountain Pass, and bring up the chloralkali plant in the second
half of 2013, we should be ready to adjust production to meet customer demand
and be price competitive with any rare earth producer in the world." 
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 (866)
953-6860 and reference passcode number 93032772. Those calling from outside the
U.S. should dial +1 (617) 399-3484 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, 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. 
# # # 
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.
Consolidated Balance Sheets
(In thousands, except share and per share amounts) 
-***- 
June 30, 2013    December 31, 
2012 
------------------------------- 
(Revised) 
ASSETS
Current assets:
  Cash and cash equivalents          $     264,162   $     227,790
  Trade accounts receivable, net            51,117          52,430
  Inventory                                213,733         287,376
  Deferred charges                           5,107           9,412
  Deferred tax assets                        9,079           9,789
  Income tax receivable                     20,296          25,087
  Prepaid expenses and other                21,168          21,794 
current assets 
------------------------------- 
Total current assets                  584,662         633,678 
-------------------------------
Non-current assets:
  Deposits                                  26,632          26,769
  Property, plant and equipment, net     1,713,258       1,544,304
  Inventory                                 24,663          26,096
  Intangible assets, net                   430,596         450,938
  Investments                               61,082          64,036
  Deferred tax assets                            -               -
  Goodwill                                 239,742         239,742
  Other non-current assets                   6,547           6,972 
------------------------------- 
Total non-current assets            2,502,520       2,358,857 
-------------------------------
Total assets                         $   3,087,182   $   2,992,535 
------------------------------ 
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: 
Current liabilities:
  Trade accounts payable                 $     104,981      $     241,994
  Accrued expenses                              45,357             59,013
  Income tax payable                            10,971             15,267
  Deferred tax liabilities                          55                  -
  Debt and capital lease obligations            14,638             39,604
  Other current liabilities                      5,639              3,539 
------------------------------- 
Total current liabilities                 181,641            359,417 
-------------------------------
Non-current liabilities:
  Asset retirement obligation                   15,161             18,586
  Deferred tax liabilities                     134,617            160,675
  Debt and capital lease obligations         1,348,990          1,188,832
  Derivative liability                           6,660              7,816
  Pension liabilities                            3,384              3,292
  Other non-current liabilities                  2,287              2,659 
------------------------------- 
Total non-current liabilities           1,511,099          1,381,860 
------------------------------- 
(Revised) 
-------------------------------
Total liabilities                        $   1,692,740      $   1,741,277 
-------------------------------
Commitments and contingencies
Stockholders' equity:
  Common stock, $0.001 par value;                  189                139 
350,000,000 shares authorized at 
June 30, 2013
  Preferred stock, $0.001 par value;                 2                  2 
5,000,000 shares authorized at 
June 30, 2013
  Additional paid-in capital                 1,947,983          1,691,429
  Accumulated other comprehensive loss         (12,065)           (9,433)
  Accumulated deficit                         (576,237)         (466,091) 
------------------------------- 
Total Molycorp stockholders' equity     1,359,872          1,216,046 
Noncontrolling interests                   34,570             35,212 
------------------------------- 
Total stockholders' equity              1,394,442          1,251,258 
-------------------------------
Total liabilities and stockholders' equity $ 3,087,182      $   2,992,535 
------------------------------- 
-****_ 
TABLE 2: INCOME STATEMENTS 
MOLYCORP, INC.
Consolidated Statements of Operations and Comprehensive Income
(In thousands, except share and per share amounts) 
-***- 
Three Months Ended June 30,
------------------------------------------------------------------------- 
2013             2012
-------------------------------------------------------------------------
Revenues                                     $   136,862      $   104,577
Costs of sales:
  Costs excluding depreciation and              (136,792)       (103,569) 
amortization
  Depreciation and amortization                  (18,574)         (5,081)
-------------------------------------------------------------------------
Gross profit (loss)                              (18,504)         (4,073)
Operating expenses:
  Selling, general and administrative            (25,807)        (23,070)
  Corporate development                              (73)        (14,925)
  Depreciation, amortization and accretion        (8,293)         (2,279)
  Research and development                        (6,506)         (6,049)
  Impairment of goodwill and other long-            (377)              - 
lived assets
------------------------------------------------------------------------- 
Operating loss                             (59,560)        (50,396)
-------------------------------------------------------------------------
Other (expense) income:
  Other income (expense)                          1,827          (30,980)
  Foreign exchange gain (loss), net               1,667           (2,789)
  Interest expense, net of capitalized interest (14,869)          (9,805)
------------------------------------------------------------------------- 
(11,375)         (43,574)
------------------------------------------------------------------------- 
Loss before income taxes and equity       (70,935)         (93,970) 
earnings 
Income tax benefit                           3,530           27,303 
Equity in results of affiliates            (3,284)            (257)
------------------------------------------------------------------------- 
Net loss                                  (70,689)         (66,924) 
Net income attributable to 
non-controlling interest                   (486)            (680)
-------------------------------------------------------------------------
Net loss attributable to Molycorp stockholders $(71,175)    $    (67,604)
-------------------------------------------------------------------------
Net loss                                       $(70,689)    $    (66,924)
Other comprehensive income:
  Foreign currency translation adjustments          662           (4,221)
------------------------------------------------------------------------- 
Comprehensive loss                       $(70,027)    $    (71,145)
-------------------------------------------------------------------------
Comprehensive loss attributable to: 
Molycorp stockholders                     (69,541)         (70,465) 
Noncontrolling interest                      (486)            (680)
------------------------------------------------------------------------- 
$(70,027)    $    (71,145)
------------------------------------------------------------------------- 
Loss per share of common stock: 
Basic                                     $ (0.44 )    $      (0.71)
------------------------------------------------------------------------- 
Diluted                                   $ (0.44 )    $      (0.71)
------------------------------------------------------------------------- 
Six Months Ended June 30,
------------------------------------------------------------------------- 
2013             2012
-------------------------------------------------------------------------
Revenues                                    $    283,229      $   189,047
Costs of sales:
  Costs excluding depreciation and              (273,386)       (153,641) 
amortization
  Depreciation and amortization                  (32,883)         (8,452)
-------------------------------------------------------------------------
Gross profit (loss)                              (23,040)          26,954
Operating expenses:
  Selling, general and administrative            (52,321)        (47,253)
  Corporate development                             (188)        (18,305)
  Depreciation, amortization and accretion       (16,516)         (2,637)
  Research and development                       (12,911)         (9,699)
  Impairment of goodwill and other long-            (377)              - 
lived assets
------------------------------------------------------------------------- 
Operating loss                            (105,353)        (50,940)
-------------------------------------------------------------------------
Other (expense) income:
  Other income (expense)                           2,086         (37,558)
  Foreign exchange gain (loss), net                1,278          (1,185)
  Interest expense, net of capitalized interest  (26,518)         (9,720)
------------------------------------------------------------------------- 
(23,154)        (48,463)
------------------------------------------------------------------------- 
Loss before income taxes and equity       (128,507)        (99,403) 
earnings 
Income tax benefit                          26,021           29,485 
Equity in results of affiliates            (6,356)            (484)
------------------------------------------------------------------------- 
Net loss                                  (108,842)        (70,402) 
Net income attributable to noncontrolling 
Interest                                (1,304)            (680)
-------------------------------------------------------------------------
Net loss attributable to Molycorp stockholders $(110,146)    $   (71,082)
-------------------------------------------------------------------------
Net loss                                       $(108,842)    $   (70,402)
Other comprehensive income:
  Foreign currency translation adjustments        (2,632)         (1,691)
------------------------------------------------------------------------- 
Comprehensive loss                       $(111,474)    $   (72,093)
-------------------------------------------------------------------------
Comprehensive loss attributable to: 
Molycorp stockholders                     (110,170)        (71,413) 
Noncontrolling interest                     (1,304)           (680)
------------------------------------------------------------------------- 
$(111,474)    $   (72,093)
------------------------------------------------------------------------- 
Loss per share of common stock: 
Basic                                     $   (0.72)    $     (0.82)
------------------------------------------------------------------------- 
Diluted                                   $   (0.72)    $     (0.82)
------------------------------------------------------------------------- 
TABLE 3: STATEMENTS OF CASH FLOWS 
-***- 
MOLYCORP, INC 
Consolidated Statements of Cash Flows (Unaudited) 
(In thousands) 
Six Months Ended June 30,
------------------------------------------------------------------------- 
2013                2012
------------------------------------------------------------------------- 
Cash flows from operating activities:
  Net loss                                  $ (108,842)        $ (70,402)
Adjustments to reconcile net loss to net
cash from operating activities: 
Depreciation, amortization and accretion   49,399             11,089 
Deferred income tax benefit              (29,496)           (12,131) 
Inventory write-downs                      47,958             26,106 
Release of inventory step-up value          3,499              8,361 
Stock-based compensation expense              794              1,900 
Allowance for doubtful accounts                 -              2,500 
Foreign exchange loss                         667              1,214 
Equity in results of affiliates             6,356                484 
Other operating adjustments               (1,513)                 33 
Net change in operating assets and 
liabilities                            (42,863)           (33,535)
------------------------------------------------------------------------- 
Net cash used in by operating 
activities                            (74,041)           (64,381)
-------------------------------------------------------------------------
Cash flows from investing activities:
  Cash paid in connection with acquisition,          -          (591,011)
  net of cash acquired
  Investment in joint ventures                 (3,423)           (14,805)
  Deposits                                           -              (488)
  Capital expenditures                       (264,726)          (403,932)
  Other investing activities                     (224)                  2
------------------------------------------------------------------------- 
Net cash used in investing 
activities                         (268,373)        (1,010,234)
-------------------------------------------------------------------------
Cash flows from financing activities:
  Capital contributions                              -            390,225
  Repayments of debt                          (27,283)            (2,188)
  Net proceeds from sale of common stock       248,150                  -
  Net proceeds from sale of Senior Notes             -            635,373
  Issuance of 5.50% Convertible Notes          165,600                  -
  Payments of preferred dividends              (5,693)            (5,693)
  Proceeds from debt                                 -              9,745
  Dividend paid to noncontrolling interests    (1,946)                  -
  Other financing activities                     (360)            (2,394)
------------------------------------------------------------------------- 
Net cash provided by financing 
activities                           378,468          1,025,068
-------------------------------------------------------------------------
  Effect of exchange rate changes 
on cash                                        318                (46)
------------------------------------------------------------------------- 
Net change in cash and cash 
equivalents                          36,372            (49,593)
Cash and cash equivalents at beginning 
of the period                            227,790             418,855
-------------------------------------------------------------------------
Cash and cash equivalents at end 
of period                             $  264,162           $ 369,262
------------------------------------------------------------------------- 
-****- 
-***- 
Three months ended              Resources      Chemicals and     Magnetic
June 30, 2013                                      Oxides       Materials 
and 
Alloys
(In Thousands)
-------------------------------------------------------------------------
Revenues:
 External                   $      10,922     $    34,789     $    66,114
 Intersegment                       6,665           6,692               -
-------------------------------------------------------------------------
Total revenues              $      17,587     $    41,481     $    66,114
-------------------------------------------------------------------------
Depreciation, amortization  $     (11,629)    $    (5,589)    $   (7,422)
and accretion
Operating (loss) income     $     (40,404)    $   (15,174)    $    10,638
(Loss) income before income $     (39,215)    $   (14,019)    $    10,898
axes and equity earnings
Total assets at June 30, 
2013                     $   1,953,529     $   605,486     $   592,499
Capital expenditures (c)    $      55,693     $     1,138     $       411 
Three months ended             Rare          Corporate       Eliminations
June 30, 2013                 Metals            And               (b) 
Other 
(a)
-------------------------------------------------------------------------
Revenues:
 External                $    25,037                     $            -
  Intersegment                     -                            (13,357 )
-------------------------------------------------------------------------
Total revenues           $    25,037                     $      (13,357 )
-------------------------------------------------------------------------
Depreciation, 
amortization          $    (2,170 )   $       (57 )   $            -
and accretion
Operating (loss) income  $    (3,381 )   $    (9,953 )   $       (1,286 )
(Loss) income before 
income                $       129     $   (27,442 )   $       (1,286 )
axes and equity earnings
Total assets at 
June 30, 2013         $   103,412     $   912,660     $   (1,080,404 )
Capital expenditures (c) $       719     $        93     $            - 
Three months ended                  Total
June 30, 2013                   Molycorp, Inc.
-----------------------------------------------
Revenues:
 External                     $     136,862
  Intersegment                            -
-----------------------------------------------
Total revenues                $     136,862
-----------------------------------------------
Depreciation, amortization    $     (26,867 )
and accretion
Operating (loss) income       $     (59,560 )
(Loss) income before income   $     (70,935 )
axes and equity earnings
Total assets at June 30, 2013 $   3,087,182
Capital expenditures (c)      $      58,054 
Three Months Ended            Resources       Chemicals          Magnetic
 June 30, 2012                                      And     Materials and 
Oxides            Alloys
-------------------------------------------------------------------------
Revenues:
 External                   $    16,533     $    39,019        $   31,532
 Intersegment                       400             726                 -
-------------------------------------------------------------------------
Total revenues              $    16,933     $    39,745        $   31,532
-------------------------------------------------------------------------
Depreciation, amortization  $    (2,594)    $    (1,419)       $  (1,877)
and accretion
Operating (loss) income     $   (17,158)    $   (10,475)       $  (3,107)
Loss before income taxes    $   (17,137)    $   (11,970)       $  (3,460)
Capital expenditures (c)    $    228,787    $      5,254       $      832 
Three Months Ended              Rare         Corporate       Eliminations
 June 30, 2012                 Metals              And                (B) 
Other(A)
-------------------------------------------------------------------------
Revenues:
 External                  $   17,493                          $        -
 Intersegment                       -                            (1,126 )
-------------------------------------------------------------------------
Total revenues             $   17,493                        $   (1,126 )
-------------------------------------------------------------------------
Depreciation, amortization $  (1,399)     $        (29)      $      (42 )
and accretion
Operating (loss) income    $     478      $    (30,436)        $   10,302
Loss before income taxes   $  (1,375)     $    (70,330)        $   10,302
Capital expenditures (c)   $        -     $           -        $        - 
Three Months Ended                  Total
 June 30, 2012             Molycorp, Inc.
-----------------------------------------
Revenues:
 External                     $   104,577
 Intersegment                           -
-----------------------------------------
Total revenues                $   104,577
-----------------------------------------
Depreciation, amortization    $   (7,360)
and accretion
Operating (loss) income       $  (50,396)
Loss before income taxes      $  (93,970)
Capital expenditures (c)      $   234,873 
-****- 
(a) Corporate loss before income
taxes and equity earnings includes business development costs, personnel and
related costs, including stock-based compensation expense, accounting and legal
fees, occupancy expense, information technology costs and interest expense.
Total corporate assets is comprised primarily of cash and cash equivalents and
deferred tax assets. 
(b) The net elimination in operating results includes costs of sales
eliminations of $12,071 and $11,470 for the three months ended June 30, 2013 and
2012, respectively. Costs of sales eliminations consist of intercompany gross
profits as well as eliminations of lower of cost or market adjustments related
to intercompany inventory. The total assets elimination is comprised primarily
of intercompany investments and intercompany accounts receivable and profits in
inventory. 
(c) On an accrual basis excluding capitalized interest. 
TABLE 5: LOSS PER SHARE 
-***- 
(In thousands, except share and per share amounts) 
Three Months Ended June 30, 
------------------------------ 
2013             2012 
------------------------------
Net loss attributable to
Molycorp stockholders              $  (71,175)       $ (67,604) 
Dividends on Convertible
Preferred Stock                        (2,846)          (2,846) 
------------------------------
Loss attributable to
common stockholders                   (74,021)         (70,450) 
------------------------------
Weighted average common
shares outstanding - basic        168,075,012       99,175,285 
Basic loss per share              $     (0.44)       $   (0.71) 
=============================
Weighted average common
shares outstanding   diluted      168,075,012       99,175,285 
Diluted loss per share            $     (0.44)       $   (0.71) 
-****- 
TABLE 6: PRODUCT REVENUES, VOLUMES, ASP 
-***- 
Three Months Ended June 30, 
-------------------------------
Revenues (in thousands)                        2013               2012 
-------------------------------
Resources (1)                             $   17,587          $  16,933
Chemicals and Oxides (2)                      41,481             39,745
Magnetic Materials and Alloys (3)             66,114             31,532
Rare Metals (4)                               25,037             17,493
Intersegments eliminations                   (13,357)            (1,126) 
-------------------------------
Total Net Revenues                        $  136,862         $  104,577 
=============================== 
------------------------------- 
Three Months Ended June 30, 
-------------------------------
Volumes (in metric tons)                       2012                2013 
-------------------------------
Resources                                      1,049                 525
Chemicals and Oxides                           1,266                 692
Magnetic Materials and Alloys                  1,485                 579 Rare
Metals                                       92                  94
Intersegments eliminations                      (853)               (198) 
3,039               1,692 
=============================== 
------------------------------- 
Three Months Ended June 30, 
-------------------------------
ASP per kilogram                               2013                2012 
-------------------------------
Resources                                  $   16.77            $  32.25
Chemicals and Oxides                       $   32.76            $  57.47
Magnetic Materials and Alloys              $   44.52            $  80.18
Rare Metals                                $  272.14            $ 187.35 
-****- 
1. The Resources segment includes
the Company's operations at its Molycorp Mountain Pass facility where it
conducts rare earth minerals extraction to produce: rare earth concentrates;
REO, including lanthanum, cerium, neodymium, praseodymium and yttrium; heavy
rare earth concentrate, which includes samarium, europium, gadolinium, terbium,
dysprosium, and others; and SorbXTM , a line of proprietary rare earth-based
water treatment products, formerly known as XSORBX. 
2. The Chemicals and Oxides division includes: production of REO at the
Company's operations in Sillamae, Estonia; heavy rare earth oxides other custom
engineered materials from the Company's facilities in Jiangyin, Jiangsu
Province, China; and production of REO, salts of rare earth elements ("REEs"),
zirconium-based engineered materials and mixed rare earth/zirconium oxides from
the Company's facilities in Zibo, Shandong Province, China. Rare earth 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 the Company's 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 the Molycorp
Metals and Alloys ("MMA") facility, located in Tolleson, Arizona. Neo
Powders(tm) are used in micro motors, precision motors, sensors, and other
applications requiring high levels of magnetic strength, flexibility, small
size, and reduced weight. 
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 include the following: Quapaw,
Oklahoma; Blanding, Utah; Peterborough, Ontario; Napanee, Ontario; Sagard,
Germany; Hyeongok Industrial Zone in South Korea; and Sillamae, Estonia.
Applications from products made in this segment include wireless technologies,
light-emitting diode ("LED"), flat panel display, turbine, solar, catalyst,
steel additive, electronics applications, and others. 
TABLE 7: NON-GAAP ADJUSTED NET LOSS, EBITDA and ADJUSTED EBITDA RECONCILIATION 
(In thousands, except share and per share data) 
-***- 
-------------------------------------------------------------------------
Adjusted Net Loss
------------------------------------------------------------------------- 
Three Months Ended June 30,
------------------------------------------------------------------------- 
2013                2012
-------------------------------------------------------------------------
Net loss attributable to
Molycorp stockholders                        (71,175)        $   (67,604)
Certain non-cash and other items:                   -
Stock-based compensation                        1,037               1,075
Inventory write-downs                          14,330              19,542
Impact of purchase accounting on
cost of inventory sold                          1,002               8,361
Out-of-ordinary items:
Water removal                                   4,964               4,532
Molycorp Mountain Pass non-capitalizable costs    540               4,278
Business Expansion items:
Due diligence and other transaction costs           -              53,756
Other business expansion expenses                 254               3,466
Income tax effect of above adjustments        (8,966)            (27,553)
-------------------------------------------------------------------------
Adjusted net (loss) income                   (58,014)               (147)
Dividends on Convertible Preferred Stock      (2,846)             (2,846)
-------------------------------------------------------------------------
Adjusted net (loss) income attributed
to common stockholders                   $   (60,860)        $    (2,993)
-------------------------------------------------------------------------
Weighted average common
shares outstanding                        168,075,012          99,175,285
-------------------------------------------------------------------------
Adjusted net (loss)
earnings per share                         $   (0.36)        $     (0.03)
------------------------------------------------------------------------- 
-****- 
-***- 
EBITDA and Adjusted EBITDA               Three months ended June 30, 2013
-------------------------------------------------------------------------
Operating loss                                           $       (59,560)
Depreciation and amortization included in costs of sales           18,574
Depreciation, amortization and accretion                            8,293
-------------------------------------------------------------------------
EBITDA                                                           (32,693)
-------------------------------------------------------------------------
Stock-based compensation                                            1,037
Inventory write-downs                                              14,330
Impact of purchase accounting on cost of inventory sold             1,002
Water removal                                                       4,964
Molycorp Mountain Pass non-capitalizable costs                        540
-------------------------------------------------------------------------
Other business expansion expenses                                     254
-------------------------------------------------------------------------
Adjusted EBITDA                                          $       (10,566) 
-****- 
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 this press release as a PDF, please click on the following link:
http://www.usetdas.com/pr/molycorp08082013.pdf 
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