Molycorp (NYSE: MCP) Reports Third Quarter 2013 Financial Resul

 
FSC / Press Release 
Molycorp (NYSE: MCP) Reports Third Quarter 2013 Financial Results 
HIGHLIGHTS: 
* Total volume amounted to 3,620 metric tons (mt), a 19% increase over the
second quarter, at an average selling price (ASP) of $41.18 per kilogram.  Net
revenues for the quarter were $149.1 million, up 9% from the second quarter of
the year. 
* The Company reported a net loss of $0.43 per share for the quarter. The
Company reported a net loss of $0.27 per share for the quarter on an adjusted
non-GAAP basis. 
* In the Chemicals and Oxides segment, volume of its advanced materials and
other products, including mixed oxides, increased 34% from the second quarter.
Pricing also increased 4% from the second quarter to drive revenues to $58.0
million, nearly a 40% increase over the same period. 
* In the Magnetic Materials and Alloys segment, volume of Magnequench bonded Neo
Powders(TM) and other alloys increased 20% from the second quarter. Pricing
decreased 9% to drive revenues to $72.6 million, a 10% increase over the same
period. 
Greenwood Village, CO US, November 07, 2013 /FSC/ - Molycorp, Inc (MCP - NYSE), 
("Molycorp" or the "Company") ($MCP) today announced financial and operating
results for the third quarter of 2013. 
THIRD QUARTER 2013 RESULTS 
The Company reported consolidated net revenues of $149.1 million, a 9% increase
over the second quarter of 2013. The increase in revenues was primarily
attributable to higher product volumes and slightly higher ASPs in the Chemicals
and Oxides segment and higher product volumes for its Magnetic Materials and
Alloys segment. 
During the third quarter, the Company sold 3,620 mt of product at an ASP of
$41.18 per kilogram, and generated a gross loss of $17.8 million. This compares
to volume sales of 3,039 mt at an ASP of $45.04 per kilogram and a gross loss of
$18.5 million during the second quarter of 2013. 
Molycorp reported a loss attributable to common stockholders of $72.8 million,
or $0.43 per share. Adjusted loss per share of $0.27 in the third 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 $90.0
million during the first nine months of 2013, and had $173.9 million in cash and
cash equivalents as of September 30, 2013. During the quarter the company
reported negative operating cash flow of $16.0 million, a 54% improvement over
the prior quarter of negative $34.7 million. 
During the three months ended September 30, 2013, Molycorp's capital
expenditures were $69.9 million on a cash basis. For the remainder of 2013, the
Company estimates that its capital expenditures will total approximately $60
million. 
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)
474-9503 and reference passcode number 859736683. Those calling from outside the
U.S. should dial +1 (857) 244-7556 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) 
-***- 
September 30, 2013      December 31, 2012 
--------------------- --------------------- 
ASSETS
Current assets: 
Cash and cash equivalents         $           173,914   $             227,790 
Trade accounts receivable, net                 58,200                  52,430 
Inventory                                     183,441                 287,376 
Deferred charges                                3,080                   9,412 
Deferred tax assets                             8,478                   9,789 
Income tax receivable                          20,296                  25,087 
Prepaid expenses and other 
current assets                             25,660                  21,794 
--------------------- --------------------- 
Total current assets                       473,069                 633,678 
--------------------- ---------------------
Non-current assets: 
Deposits                                       25,997                  26,769 
Property, plant and equipment, net          1,779,084               1,544,304 
Inventory                                      24,325                  26,096 
Intangible assets, net                        419,471                 450,938 
Investments                                    58,749                  64,036 
Goodwill                                      239,742                 239,742 
Other non-current assets                        6,839                   6,972 
--------------------- --------------------- 
Total non-current assets               2,554,207               2,358,857 
--------------------- ---------------------
Total assets                         $         3,027,276   $           2,992,535 
===================== ===================== 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: 
Trade accounts payable            $           107,882   $             241,994 
Accrued expenses                               61,445                  59,013 
Income tax payable                              1,708                  15,267 
Debt and capital lease obligations             16,673                  39,604 
Other current liabilities                       6,689                   3,539 
--------------------- --------------------- 
Total current liabilities                  194,397                 359,417 
--------------------- ---------------------
Non-current liabilities: 
Asset retirement obligation                    14,084                  18,586 
Deferred tax liabilities                      125,142                 160,675 
Debt and capital lease obligations          1,356,256               1,188,832 
Derivative liability                            6,819                   7,816 
Pension liabilities                             3,431                   3,292 
Other non-current liabilities                   2,052                   2,659 
--------------------- --------------------- 
Total non-current liabilities            1,507,784               1,381,860 
--------------------- ---------------------
Total liabilities                    $         1,702,181   $           1,741,277 
--------------------- --------------------- 
-****- 
MOLYCORP, INC.
Consolidated Balance Sheets (Continued)
(In thousands, except share and per share amounts) 
-***- 
September 30, 2013 December 31, 2012 
------------------ ------------------- 
Stockholders' equity: 
Common stock, $0.001 par value; 
350,000,000 shares authorized at 
September 30, 2013                                    189                 139 
Preferred stock, $0.001 par value; 
5,000,000 shares authorized at 
September 30, 2013                                      2                   2
Additional paid-in capital                         1,946,742           1,691,429
Accumulated other comprehensive loss                 (7,848)             (9,433)
Accumulated deficit                                (646,163)           (466,091) 
------------------ ------------------- 
Total Molycorp stockholders' equity          1,292,922           1,216,046 
Noncontrolling interests                        32,173              35,212 
------------------ ------------------- 
Total stockholders' equity                   1,325,095           1,251,258 
------------------ -------------------
Total liabilities and stockholders' equity  $      3,027,276  $        2,992,535 
================== =================== 
-****- 
TABLE 2: INCOME STATEMENTS 
MOLYCORP, INC.
Consolidated Statements of Operations and Comprehensive Income
(In thousands, except per share amounts) 
-***- 
Three Months Ended 
September 30, 
------------------------- 
2013           2012 
-------------------------
Revenues                                               $    149,066  $   205,205
Costs of sales: 
Costs excluding depreciation and amortization          (150,444)    (183,227) 
Depreciation and amortization                           (16,400)     (10,612) 
-------------------------
Gross (loss) profit                                        (17,778)       11,366
Operating expenses: 
Selling, general and administrative                     (24,399)     (31,349) 
Corporate development                                       (69)      (1,073) 
Depreciation, amortization and accretion                (10,072)      (9,584) 
Research and development                                 (5,565)      (8,929) 
Impairment of goodwill and other long-lived assets       (1,118)            - 
------------------------- 
Operating loss                                     (59,001)     (39,569) 
-------------------------
Other (expense) income: 
Other income (expense)                                     (657)         (57) 
Foreign exchange (loss) gain , net                         (234)        1,910 
Interest expense, net of capitalized interest           (16,289)      (5,269) 
------------------------- 
(17,180)      (3,416) 
------------------------- 
Loss before income taxes and equity earnings       (76,181)     (42,985) 
Income tax benefit                                   12,902       28,956 
Equity in results of affiliates                     (2,334)        (662) 
------------------------- 
Loss from continuing operations                    (65,613)     (14,691) 
Loss from discontinued operations, net of tax       (4,186)        (760) 
------------------------- 
Net loss                                           (69,799)     (15,451) 
Net income attributable to noncontrolling 
interest                                              (130)      (3,440) 
-------------------------
Net loss attributable to Molycorp stockholders         $   (69,929)  $  (18,891) 
========================= 
Net loss                                               $   (69,799)  $  (15,451)
Other comprehensive income: 
Foreign currency translation adjustments                   4,217          526 
------------------------- 
Comprehensive loss                             $   (65,582)  $  (14,925) 
=========================
Comprehensive loss attributable to: 
Molycorp stockholders                              (65,452)     (11,485) 
Noncontrolling interest                               (130)      (3,440) 
------------------------- 
$   (65,582)  $  (14,925) 
========================= 
Nine Months Ended 
September 30, 
------------------------- 
2013         2012 
------------ -----------
Revenues                                               $   430,580  $  394,085
Costs of sales: 
Costs excluding depreciation and amortization         (421,699)   (336,654) 
Depreciation and amortization                          (49,283)    (19,065) 
------------ -----------
Gross (loss) profit                                       (40,402)      38,366
Operating expenses: 
Selling, general and administrative                    (76,446)    (78,583) 
Corporate development                                     (256)    (19,379) 
Depreciation, amortization and accretion               (26,273)    (12,188) 
Research and development                               (18,476)    (18,628) 
Impairment of goodwill and other long-lived assets      (1,495)           - 
------------ ----------- 
Operating loss                                   (163,348)    (90,412) 
------------ -----------
Other (expense) income: 
Other income (expense)                                    1,430    (37,615) 
Foreign exchange (loss) gain , net                        1,044         724 
Interest expense, net of capitalized interest          (42,807)    (14,989) 
------------ ----------- 
(40,333)    (51,880) 
------------ ----------- 
Loss before income taxes and equity earnings     (203,681)   (142,292) 
Income tax benefit                                  38,922      58,442 
Equity in results of affiliates                    (8,690)     (1,146) 
------------ ----------- 
Loss from continuing operations                  (173,449)    (84,996) 
Loss from discontinued operations, net of tax      (5,190)       (860) 
------------ ----------- 
Net loss                                         (178,639)    (85,856) 
Net income attributable to noncontrolling 
interest                                           (1,433)     (4,120) 
------------ -----------
Net loss attributable to Molycorp stockholders         $ (180,072)  $ (89,976) 
============ =========== 
Net loss                                               $ (178,639)  $ (85,856)
Other comprehensive income: 
Foreign currency translation adjustments                  1,585     (1,165) 
------------ ----------- 
Comprehensive loss                             $ (177,054)  $ (87,021) 
============ ===========
Comprehensive loss attributable to: 
Molycorp stockholders                            (175,621)    (82,901) 
Noncontrolling interest                            (1,433)     (4,120) 
------------ ----------- 
$ (177,054)  $ (87,021) 
============ =========== 
-****- 
-***- 
Loss per share of common stock: 
Basic: 
Continuing operations      $  (0.41)  $  (0.18)   $  (1.12)  $   (0.97) 
Discontinued operations       (0.02)     (0.01)      (0.03)      (0.01) 
---------------------- --------------------- 
$  (0.43)  $  (0.19)   $  (1.16)  $   (0.97) 
====================== ===================== 
Diluted: 
Continuing operations      $  (0.41)  $  (0.18)   $  (1.12)  $   (0.97) 
Discontinued operations       (0.02)     (0.01)      (0.03)      (0.01) 
---------------------- --------------------- 
$  (0.43)  $  (0.19)   $  (1.16)  $   (0.97) 
====================== ===================== 
-****- 
TABLE 3: STATEMENTS OF CASH FLOWS 
MOLYCORP, INC
Consolidated Statements of Cash Flows (Unaudited)
(In thousands) 
-***- 
Nine Months Ended 
September 30, 
------------------------ 
2013           2012 
------------------------
Cash flows from operating activities: 
Net loss                                             $ (178,639)  $  (85,856)
Adjustments to reconcile net loss to net cash
from operating activities: 
Depreciation, amortization and accretion               75,870       31,426 
Deferred income tax benefit                          (36,399)     (35,179) 
Inventory write-downs                                  74,475       41,082 
Release of inventory step-up value                      5,650       26,428 
Impairment of long-lived assets                         4,949            - 
Stock-based compensation expense                        2,399        3,179 
Allowance for doubtful accounts                             -        2,500 
Foreign exchange loss                                   (145)            - 
Equity in results of affiliates                         8,690        1,146 
Other operating adjustments                           (1,651)          167 
Net change in operating assets and liabilities       (45,212)     (32,081) 
------------------------ 
Net cash used in operating activities             (90,013)     (47,188) 
------------------------
Cash flows from investing activities: 
Cash paid in connection with acquisition, 
net of cash acquired                                           -    (591,011) 
Investment in joint ventures                             (3,423)     (28,130) 
Deposits                                                       -        (516) 
Capital expenditures                                   (334,597)    (644,683) 
Other investing activities                                 (364)        4,953 
------------------------ 
Net cash used in investing activities            (338,384)   1,259,387) 
------------------------
Cash flows from financing activities: 
Capital contributions                                          -      390,225 
Repayments of debt                                      (25,990)    (228,431) 
Net proceeds from sale of common stock                   248,150      132,471 
Net proceeds from sale of Senior Notes                         -      635,373 
Issuance of 5.50% Convertible Notes                      165,600 
Issuance of 6.00% Convertible Notes                            -      395,712 
Payments of preferred dividends                          (8,539)      (8,539) 
Proceeds from debt                                             -        9,456 
Dividend paid to noncontrolling interests                (4,472) 
Other financing activities                                 (797)      (3,331) 
------------------------ 
Net cash provided by financing activities          373,952    1,322,936
  Effect of exchange rate changes on cash                       569          809 
------------------------ 
Net change in cash and cash equivalents           (53,876)       17,170
Cash and cash equivalents at beginning of the period        227,790      418,855 
------------------------
Cash and cash equivalents at end of period              $   173,914  $   436,025 
======================== 
-****- 
TABLE 4: SEGMENT INFORMATION 
-***- 
Magnetic 
Chemicals  Materials 
and        and        Rare
Three months ended                  Resources      Oxides     Alloys      Metals
September 30, 2013
-------------------------------------------------------------------------------- 
Revenues:                                       (In thousands of dollars) 
External                             4,655      50,791     72,626      20,994 
Intersegment                         8,858       7,174          -           - 
-----------------------------------------------
Total revenues                         13,513      57,965     72,626      20,994 
===============================================
Depreciation, amortization and       (10,853)     (5,960)    (7,458)     (2,144)
accretion
Operating (loss) income              (55,526)     (1,399)     11,062     (3,055)
(Loss) income before income taxes
and equity earnings                  (56,139)     (1,527)     39,291     (4,807)
Total assets at September 30,
2013                                1,880,127     567,207    621,127     100,794
Capital expenditures (c)               57,637       1,573      1,457       1,946 
Corporate                       Total 
and       Elimina-    Molycorp,
Three months ended                   other(a)      -tions(b)         Inc.
September 30, 2013
-------------------------------------------------------------------------- 
(In thousands of dollars)
Revenues: 
External                                                -      149,066 
Intersegment                                     (16,032)            - 
---------------------------------------
Total revenues                                      (16,032)      149,066 
=======================================
Depreciation, amortization and           (57)              -     (26,472)
accretion
Operating (loss) income              (10,806)            723     (59,001)
(Loss) income before income taxes
and equity earnings                  (53,722)            723     (76,181)
Total assets at September 30,
2013                                1,329,485    (1,471,464)    3,027,276
Capital expenditures (c)                   77              -       62,690 
-****- 
-***- 
Magnetic 
Chemicals  Materials 
and        and        Rare
Three months ended                  Resources      Oxides     Alloys      Metals
September 30, 2013
---------------------------------   ------------ ------------------------------- 
Revenues:                             (In thousands of dollars) 
External                              17,150      87,820     74,789    25,446 
Intersegment                           3,745      11,559          -         - 
------------ -------------------------------
Total revenues                           20,895      99,379     74,789    25,446 
============ ===============================
Depreciation, amortization and          (4,035)     (5,685)    (8,857)   (1,576)
accretion
Operating (loss) income                (23,966)       2,149      1,419   (3,014)
(Loss) income before income
taxes and equity earnings              (25,506)       1,201      1,215   (3,052)
Capital expenditures (c)                187,611       2,597      1,432     2,837 
Corporate                       Total 
and       Elimina-    Molycorp,
Three months ended                     other(a)      -tions(b)         Inc.
September 30, 2013
---------------------------------   ---------------------------------------- 
Revenues:                            (In thousands of dollars) 
External                                                  -      205,205 
Intersegment                                       (15,304)            - 
---------------------------------------
Total revenues                                        (15,304)      205,205 
=======================================
Depreciation, amortization and             (43)              -     (20,196)
accretion
Operating (loss) income                (16,526)            369     (39,569)
(Loss) income before income
taxes and equity earnings              (17,212)            369     (42,985)
Capital expenditures (c)                  1,387              -      195,864 
-****- 
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. 
b. The net elimination in operating results includes costs of sales eliminations
of $16,755 and $15,673 for the three months ended September 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 
-***- 
Three Months 
Ended September 30, 
----------------------------
(In thousands, except share and per share amounts)     2013               2012 
-------------  -------------
  Net loss attributable to Molycorp stockholders:   $  (69,929)    $   (18,891)
  Dividends on Convertible Preferred Stock              (2,846)         (2,846) 
-------------  -------------
  Loss attributable to common stockholders             (72,775)        (21,737) 
-------------  ------------- 
Continuing operations                         (68,589)        (20,977) 
Discontinued operations                        (4,186)           (760) 
-------------  ------------- 
$  (72,775)    $   (21,737) 
-------------  ------------- 
Weighted average common shares outstanding-basic    8,114,266      17,086,022
  Basic loss per share: 
Continuing operations                      $    (0.41)    $     (0.18) 
Discontinued operations                         (0.02)          (0.01) 
-------------  ------------- 
$    (0.43)    $     (0.19) 
=============  ============= 
Diluted loss per share: 
Continuing operations                      $    (0.41)    $     (0.18) 
Discontinued operations                         (0.02)          (0.01) 
-------------  ------------- 
$    (0.43)    $     (0.19) 
=============  ============= 
-****- 
TABLE 6: PRODUCT REVENUES, VOLUMES, ASP 
-***- 
Three Months Ended September 30, 
---------------------------------------
Revenues (in thousands)                      2013                 2012 
-------------------- ------------------
Resources (1)                         $           13,513   $           20,895
Chemicals and Oxides (2)                          57,965               99,379
Magnetic Materials and Alloys (3)                 72,626               74,789
Rare Metals (4)                                   20,994               25,446
Intersegments eliminations                      (16,032)             (15,304) 
-------------------- ------------------
Total Net Revenues                    $          149,066   $          205,205 
==================== ================== 
-****- 
-***- 
Three Months Ended September 30, 
--------------------------------------
Volumes (in metric tons)                      2013                 2012 
-------------------  -----------------
Resources                                          1,080                  835
Chemicals and Oxides                               1,696                1,933
Magnetic Materials and Alloys                      1,783                1,527
Rare Metals                                          102                   96
Intersegments eliminations                       (1,041)                (720) 
-------------------  ----------------- 
3,620                3,671 
===================  ================== 
-****- 
-***- 
Three Months Ended September 30, 
-----------------------------------------
ASP per kilogram                            2013                 2012 
-------------------- --------------------
Resources                            $            12.51   $            25.02
Chemicals and Oxides                 $            34.18   $            51.41
Magnetic Materials and Alloys        $            40.73   $            48.98
Rare Metals                          $           205.82   $           269.22 
-****- 
1. The Resources segment includes the Company's operations at its Molycorp
Mountain Pass facility where it conducts rare earth minerals extraction to
produce: purified unseparated light rare earth concentrates; separated rare
earth oxides, or REO, including lanthanum, cerium and neodymium/praseodymium;
heavy rare earth concentrate, which includes samarium, europium, gadolinium, or
SEG, terbium, dysprosium, and others; and SorbX(TM), a line of proprietary rare
earth-based water treatment products. 
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,
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 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; Sagard, Germany; Hyeongok
Industrial Zone in South Korea; and Sillamae, Estonia. Applications from
products made in this segment include wireless technologies, light-emitting
diode, flat panel display, turbine, solar, catalyst, steel additive, electronics
applications, and others. In July 2013, the Company committed to a plan to
discontinue operations at its Napanee, Ontario - Canada facility by the end of
fiscal 2013 due to a declining demand for rhenium combined with unfavorable
operating costs in this particular recycling sector. Therefore, the operating
results of the Napanee facility were included in discontinued operations for the
three and nine months ended September 30, 2013, and the prior period
presentation of financial data for the Rare Metals segment has been revised for
comparative purposes. 
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 September 30, 
------------------------------- 
2013           2012 
---------------- --------------
Net loss attributable to Molycorp stockholders   $     (69,929)   $     (18,891)
Certain non-cash and other items:
Stock-based compensation                                  1,687            1,279
Inventory write-downs                                    20,264           14,976
Impact of purchase accounting on cost of
inventory sold                                            2,151           18,067
Impairment of long-lived assets                           3,454                -
Out-of-ordinary items:
Water removal                                             5,146            3,174
Molycorp Mountain Pass non-capitalizable costs                -            4,958
Business Expansion items:
Due diligence and other transaction costs                     -            1,001
Other business expansion expenses                             -            1,743
Release of tax provision                                      -         (15,100)
Income tax effect of above adjustments                  (5,850)         (14,463) 
---------------- --------------
Adjusted net (loss) income                             (43,077)          (3,256)
Dividends on Convertible Preferred Stock                (2,846)          (2,846) 
---------------- --------------
Adjusted net (loss) income attributed to
common stockholders                              $     (45,923)   $      (6,102) 
================ ==============
Weighted average common shares outstanding          168,114,266      117,086,022 
================ ==============
Adjusted net (loss) earnings per share           $       (0.27)   $       (0.05) 
================ ============== 
-****- 
-***- 
EBITDA and Adjusted EBITDA                                Three months ended 
September 30, 2013 
------------------------- 
Operating loss                                         $               (59,001)
Depreciation and amortization included in
costs of sales                                                           16,400
Depreciation, amortization and accretion                                 10,072 
-------------------------
EBITDA                                                                 (32,529) 
------------------------- 
Stock-based compensation                                                  1,687
Inventory write-downs                                                    20,264
Impact of purchase accounting on cost
of inventory sold                                                         2,151
Impairment of long-lived assets                                           3,454
Water removal                                                             5,146 
-------------------------
Adjusted EBITDA                                        $                    173 
=========================
-****- 
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/molycorp11072013.pdf 
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