Molycorp Reports Fourth Quarter & Full Year 2013 Financial Resu

  FSC / Press Release  Molycorp Reports Fourth Quarter & Full Year 2013 Financial Results  HIGHLIGHTS:  * The Company announced that the Chlor-Alkali plant at its Mountain Pass, California rare earth facility has successfully completed commissioning and is now operational, which facilitates increased production volumes at lower production costs.  * The Company reported fourth quarter product sales volume of 3,201 metric tons (mt), a 12% decrease over the third quarter, at an average selling price ("ASP") of $38.68 per kilogram. Net revenues for the quarter were $123.8 million, a 17% decrease from the third quarter.  * For the full year 2013, the Company reported sales volume of 13,118 mt, a 42% increase over 2012, at an ASP of $42.26 per kilogram. Net revenues for the year were $554.4 million, a 5% increase as compared to 2012.  * The Company reported a net loss of $0.95 per share for the quarter. The Company reported a net loss of $0.28 per share for the quarter on an adjusted non-GAAP basis.  * For the full year 2013, the Company reported a net loss of $2.21 per share, which includes a loss of $0.04 per share related to discontinued operations. On an adjusted non-GAAP basis, the Company reported a net loss of $1.09 per share for the full year.  Greenwood Village, CO US, March 03, 2014 /FSC/ - Molycorp, Inc (MCP - NYSE), ("Molycorp" or the "Company") today announced financial and operating results for the fourth quarter and full year 2013.  The Company announced that it had achieved a significant milestone with the completion of commissioning and the operational start-up of the Chlor-Alkali plant at its Mountain Pass, California rare earth facility.  That plant utilizes recycled wastewater from Mountain Pass operations to produce chemical reagents used in rare earth production.  "Putting our Chlor-Alkali plant into operation is a major milestone. Producing our own chemical reagents and reducing our water discharge will lower our costs, and this unit further reduces the environmental footprint of rare earth production at Mountain Pass," said Molycorp President and CEO Geoff Bedford. "It will play a key role in helping us achieve operating break-even cash flow, before interest, this year."  FOURTH QUARTER 2013 RESULTS  The Company reported consolidated net revenues of $123.8 million, a 17% decrease over the third quarter of 2013. The decrease in revenues was largely driven by a shifting product mix, with higher sales volumes from its Chemicals and Oxides segment, offset by softened pricing for rare earths and lower volumes of magnetic powders in its Magnetic Materials and Alloys segment.  During the fourth quarter, the Company sold 3,201 mt of product at an ASP of $38.68 per kilogram, and generated a gross loss of $27.0 million. This compares to sales volumes of 3,620 mt at an ASP of $41.18 per kilogram and a gross loss of $17.8 million during the third quarter of 2013. The Company produced 1,099 metric tons and 1,000 metric tons of rare earth oxides at its Mountain Pass facility during the third and fourth quarters of 2013, respectively. Actual production was lower than expected as a result of production interruptions while the Company continues to optimize operations, and this lower than expected production has continued through the first two months of 2014.  Molycorp reported a loss attributable to common stockholders of $197.2 million, or $0.95 per share. Adjusted loss per share of $0.28 in the fourth quarter of 2013 does not reflect impairment charges for goodwill and other intangible assets, out-of-ordinary business expenses, and certain other non-cash items.  The Company reported negative cash flows from operating activities of $64.3 million during the fourth quarter, and had $314.3 million in cash and cash equivalents as of December 31, 2013.  During the three months ended December 31, 2013, Molycorp's capital expenditures were $44.7 million on a cash basis.  FULL YEAR 2013 RESULTS  Note: Prior year numbers exclude operating results from the Napanee facility, which is treated as a discontinued operation for comparative purposes.  The Company reported consolidated net revenues of $554.4 million, a 5% increase as compared to the full year 2012. The increase in revenues was largely driven by increased volume sales within its Magnetic Materials and Alloys segment, and its Rare Metals segment, slightly offset by lower realized pricing within its Resources segment. As a reminder, full year 2012 financial results included a partial year of contribution from its Molycorp Canada business, which was acquired in June 2012.  For the full year, the Company sold 13,118 mt of product at an ASP of $42.26 per kilogram, and generated a gross loss of $67.2 million. This compares to volume sales of 9,207 mt at an ASP of $57.00 per kilogram and a gross profit of $18.8 million for the full year 2012.  Molycorp reported a full year loss attributable to common stockholders of $385.8 million, or $2.21 per share. Adjusted loss per share of $1.09 for the full year 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 $154.4 million during the year. Capital expenditures for the Company on a cash basis for the full year were $379.3 million. For the full year ending December 31, 2014, the Company estimates that its capital expenditures will total approximately $85-$90 million.  CONFERENCE CALL TOMORROW AT 9:00 A.M. EASTERN STANDARD TIME  Molycorp will conduct a conference call on Tuesday, March 4, 2014 to discuss these results at 9:00 a.m. EST, hosted by Geoff Bedford, President and Chief Executive Officer, and Michael Doolan, Executive Vice President and Chief Financial Officer. Investors interested in participating in the live call from the U.S. should dial +1 (866) 318-8617 and reference passcode number 35281723. Those calling from outside the U.S. should dial +1 (617) 399-5136 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)  -***-  At December 31,  -------------------------------  2013             2012  ---------------- --------------  ASSETS Current assets: Cash and cash equivalents                        $      314,317   $     227,790 Trade accounts receivable, net                           61,757          52,430 Inventory                                               171,783         287,376 Deferred charges                                          1,046           9,412 Deferred tax assets                                       1,456           9,789 Income tax receivable                                       787          25,087 Prepaid expenses and other current assets                25,921          21,794  ---------------- -------------- Total current assets                                    577,067         633,678  ---------------- -------------- Non-current assets: Deposits                                                 25,997          26,769 Property, plant and equipment, net                    1,762,874       1,544,304 Inventory                                                25,329          26,096 Intangible assets, net                                  330,867         450,938 Deferred tax assets                                         109               - Investments                                              48,875          64,036 Goodwill                                                228,750         239,742 Other non-current assets                                  6,934           6,972  --------------  ---------------- Total non-current assets                              2,429,735       2,358,857  ---------------- -------------- Total assets                                     $    3,006,802   $   2,992,535  ================ ==============  2013             2012  ---------------- --------------  LIABILITIES AND STOCKHOLDERS' EQUITY  Current liabilities: Trade accounts payable                           $       84,449   $     241,994 Accrued expenses                                         48,501          59,013 Income tax payable                                        1,946          15,267 Deferred tax liabilities                                  1,500               - Debt and capital lease obligations                       16,362          39,604 Other current liabilities                                   617           3,539  ---------------- -------------- Total current liabilities                               153,375         359,417  ---------------- -------------- Non-current liabilities: Asset retirement obligation                              16,966          18,586 Deferred tax liabilities                                 85,481         160,675 Debt and capital lease obligations                    1,363,916       1,188,832 Derivative liability                                      6,089           7,816 Pension liabilities                                       2,044           3,292 Other non-current liabilities                             1,869           2,659  ---------------- -------------- Total non-current liabilities                         1,476,365       1,381,860  ---------------- -------------- Total liabilities                                $    1,629,740   $   1,741,277  ---------------- -------------- Commitments and contingencies Stockholders' equity: Common stock, $0.001 par value; 350,000,000 shares authorized at December 31, 2013                                           241             139 Preferred stock, $0.001 par value; 5,000,000 shares authorized at December 31, 2013                                             2               2 Additional paid-in capital                            2,194,405       1,691,429 Accumulated other comprehensive loss                     (6,451)         (9,433) Accumulated deficit                                    (840,474)       (466,091)  ---------------- -------------- Total Molycorp stockholders' equity                   1,347,723       1,216,046 Noncontrolling interests                                 29,339          35,212  ---------------- -------------- Total stockholders' equity                            1,377,062       1,251,258  ---------------- -------------- Total liabilities and stockholders' equity       $    3,006,802   $   2,992,535  ================ ==============  -****-  TABLE 2: INCOME STATEMENTS  MOLYCORP, INC.  Consolidated Statements of Operations and Comprehensive Income (In thousands, except share and per share amounts)  -***-  Quarter Ended        Years Ended December 31,  ---------------------------  December 31, 2013        2013            2012  ------------------------------------------------ Revenues                        $      123,814   $     554,390   $     527,696 Costs of sales: Costs excluding depreciation and amortization         (132,419)       (553,831)       (478,253) Depreciation and amortization          (18,444)        (67,727)        (30,621)  ------------------------------------------------  ----------------- Gross (loss) profit                    (27,049)        (67,168)         18,822 Operating expenses: Selling, general and administrative                         (30,723)       (107,169)       (113,437) Corporate development                        9            (247)        (19,796) Depreciation, amortization and accretion                          (11,764)        (38,037)        (22,187) Research and development                (4,696)        (23,172)        (27,796) Impairment of goodwill and other long-lived assets           (119,403)       (120,898)       (301,755)  ------------------------------------------------ Operating loss                        (193,626)       (356,691)       (466,149)  ------------------------------------------------ Other (expense) income: Other expense                           (8,669)         (7,525)        (38,798) Foreign exchange gain (loss), net                             (1,420)           (376)          2,872 Interest expense, net of capitalized interest                (24,877)        (67,684)        (22,116)  ------------------------------------------------  (34,966)        (75,585)        (58,042)  ------------------------------------------------ Loss from continuing operations before income taxes and                             (228,592)       (432,276)       (524,191) equity earnings Income tax benefit                      32,021          70,943          54,075 Equity in results of affiliates                                (480)         (9,169)         (3,490)  ------------------------------------------------ Loss from continuing operations                            (197,051)       (370,502)       (473,606) Loss from discontinued operations, net of tax                  (1,237)         (6,427)         (1,737)  ------------------------------------------------ Net loss                              (198,288)       (376,929)       (475,343) Net loss (income) attributable to noncontrolling interests                                3,980           2,546          (5,826)  ------------------------------------------------ Net loss attributable to Molycorp stockholders           $     (194,308)  $    (374,383)  $    (481,169)  ================================================  Net loss                        $     (198,288)  $    (376,929)  $    (475,343) Other comprehensive income (loss), net of tax: Foreign currency translation adjustments                     38           1,623             248 Actuarial gain (loss)                    1,359           1,359          (1,200)  ------------------------------------------------ Comprehensive loss              $     (196,891)  $    (373,947)  $    (476,295)  ================================================ Comprehensive (loss) income attributable to: Molycorp stockholders                 (200,871)       (376,493)       (470,469) Noncontrolling interests                 3,980           2,546          (5,826)  -----------------  ------------------------------------------------  $     (196,891)  $    (373,947)  $    (476,295)  ================================================  Loss per share of common stock: Basic: Continuing operations           $        (0.94)  $       (2.17)  $       (4.58) Discontinued operations                  (0.01)          (0.04)          (0.02)  ------------------------------------------------  $        (0.95)  $       (2.21)  $       (4.60)  ================================================  -****-  TABLE 3: STATEMENTS OF CASH FLOWS  MOLYCORP, INC Consolidated Statements of Cash Flows (In thousands)  -***-  Years Ended December 31,  -------------------------  2013          2012  ------------------------- Cash flows from operating activities: Net (loss) income                                      $ (376,929)  $  (475,343) Adjustments to reconcile net (loss) income to net cash from operating activities: Depreciation, amortization and accretion                  105,764        52,808 Deferred income tax (benefit) expense                     (68,290)      (23,563) Inventory write-downs                                     100,346        83,039 Release of inventory step-up value                          3,068        24,729 Impairment of goodwill and other long-lived assets        120,898       301,755 Impairment of cost-method investment                        9,411             - Stock-based compensation                                    5,392         3,434 Allowance for doubtful accounts                                 -         2,556 Foreign exchange loss                                        (454)        1,988 Equity in results of affiliates                             9,169         3,490 Other operating activities                                  1,993        (4,648) Net change in operating assets and liabilities            (64,719)      (59,880)  ------------------------- Net cash (used in) provided by operating activities      (154,351)      (89,635)  ------------------------- Cash flows from investing activities: Cash paid in connection with acquisitions, net of cash acquired                                            -      (591,011) Investment in joint ventures                               (3,423)      (33,044) Deposits                                                        -        (3,999) Capital expenditures                                     (379,312)     (791,469) Acquisition of exploration rights                               -        (8,167) Other investing activities                                  5,477         4,761  ------------------------- Net cash used in investing activities                    (377,258)   (1,422,929)  ------------------------- Cash flows from financing activities: Issuance of shares to Molymet                                   -       390,093 Repayments of debt                                        (26,823)     (228,708) Net proceeds from sale of common stock                    495,717       132,130 Issuance of 5.50% Senior Secured Notes                    165,600             - Issuance of 10% Senior Secured Notes                            -       635,373 Issuance of 6.00% Convertible Notes                             -       395,712 Payments of preferred dividends                           (11,385)      (11,385) Distribution paid to noncontrolling interests              (4,546)       (5,977) Proceeds from debt                                              -        14,699 Other financing activities                                 (1,297)       (1,554)  ------------------------- Net cash provided by financing activities                 617,266     1,320,383 Effect of exchange rate changes on cash                       870         1,116  ------------------------- Net change in cash and cash equivalents                    86,527      (191,065) Cash and cash equivalents at beginning of the period      227,790       418,855  ------------------------- Cash and cash equivalents at end of period             $  314,317   $   227,790  =========================  -****-  TABLE 4: SEGMENT INFORMATION  -***-  Year ended                                   Magnetic December 31,                   Chemicals    Materials  Rare Metals 2013             Resources    and Oxides   and Alloys ------------------------------------------------------------------ Revenues:                     (In thousands of dollars) External          33,621         181,815      252,713       86,241 Intersegment      26,040          37,256            -            -  ------------------------- ------------------------- Total revenues    59,661         219,071      252,713       86,241  ========================= =========================  Depreciation,    (46,318)       (22,754)     (27,812)      (8,652) amortization and accretion Operating loss  (223,702)       (87,889)      23,087      (21,108) Loss before income taxes and equity earnings        (231,944)       (87,848)      62,107      (18,326) Total assets at December 31, 2013           1,791,421         485,642      590,516       82,538 Capital expenditures     231,027           6,961        3,700        7,549  Year ended                                     Total December 31,        Corporate              Molycorp, 2013                and other Eliminations      Inc. ---------------------------------------------------- Revenues: External                                 -   554,390 Intersegment                      (63,296)         -  ----------------------- Total revenues                    (63,296)   554,390  =======================  Depreciation,           (228)           -  (105,764) amortization and accretion Operating loss       (46,126)        (953) (356,691) Loss before income taxes and equity earnings            (155,312)        (953) (432,276) Total assets at December 31, 2013                1,547,267  (1,490,582) 3,006,802 Capital expenditures              250            -   249,487  -****-  -***-  Quarter ended                                Magnetic December 31,                   Chemicals    Materials  Rare Metals 2013             Resources    and Oxides   and Alloys -------------------------------------------------------------------- Revenues:                (In thousands of dollars) External             3,386        46,635      59,296      14,497 Intersegment         7,872         8,780           -           -  ---------------------------------------------------- Total revenues      11,258        55,415      59,296      14,497  ==================================================== Depreciation,      (14,782)       (5,667)     (7,452)     (2,250) amortization and accretion Operating income (loss)      (87,647)      (68,010)     (5,376)    (18,936) Loss before income taxes and equity earnings           (96,897)      (69,410)     (4,982)    (18,380) Capital expenditures        25,358         1,289         790       1,954  Quarter ended                                       Total December 31,     Corporate                      Molycorp, 2013             and other    Eliminations           Inc. ---------------------------------------------------------- Revenues: External                 -               -      123,814 Intersegment             -         (16,652)           -  ----------------------------- Total revenues           -         (16,652)     123,814  ============================= Depreciation,          (57)              -      (30,208) amortization and accretion Operating income (loss)      (13,805)            148     (193,626) Loss before income taxes and equity earnings           (39,071)            148     (228,592) Capital expenditures             6               -       29,397  -****-  -***-  Year ended                                   Magnetic December 31,                   Chemicals    Materials  Rare Metals 2012             Resources    and Oxides   and Alloys ------------------------------------------------------------------ Revenues:                        (In thousands of dollars) External            88,870      181,849      179,335      77,642 Intersegment         7,256       25,717  --------------------------------------------------- Total revenues      96,126      207,566      179,335      77,642  ===================================================  Depreciation,      (13,991)     (13,110)     (19,737)     (5,837) amortization and accretion Operating loss     (70,220)    (191,059)    (125,543)    (18,671) Loss before income taxes and equity earnings           (70,469)    (190,094)    (126,981)    (18,181) Total assets at December 31, 2012             1,802,842      639,847      593,197     117,961 Capital expenditures       814,054       10,910        5,614      10,750  Year ended                                         Total December 31,    Corporate                      Molycorp, 2012            and other    Eliminations           Inc. --------------------------------------------------------- Revenues: External                               -       527,696 Intersegment                     (32,973)            -  ----------------------------- Total revenues                   (32,973)      527,696  =============================  Depreciation,        (133)             -       (52,808) amortization and accretion Operating loss    (85,459)        24,803      (466,149) Loss before income taxes and equity earnings         (143,269)        24,803      (524,191) Total assets at December 31, 2012              575,964       (737,276)    2,992,535 Capital expenditures        1,733              -       843,061  -****-  TABLE 5: LOSS PER SHARE  -***-  Quarter Ended  December 31, 2013  -----------------------  (In thousands, except share and per share amounts)  ----------------------- Net (loss) income attributable to Molycorp         $          (194,308) stockholders Dividends on Convertible Preferred Stock                        (2,846)  ----------------------- (Loss) income attributable to common stockholders             (197,154)  =======================  Continuing operations                           $          (195,917)  Discontinued operations                                      (1,237)  -----------------------  $          (197,154)  =======================  Weighted average common shares outstanding-basic           208,080,170  Basic (loss) earnings per share from:  Continuing operations                           $             (0.94)  Discontinued operations                                       (0.01)  -----------------------  $             (0.95)  =======================  Years Ended December 31,  -----------------------------  2013              2012  -----------------------------  (In thousands, except share and per share amounts)  ----------------------------- Net (loss) income attributable to Molycorp         $  (374,383)  $     (481,169) stockholders Dividends on Convertible Preferred Stock               (11,385)         (11,385)  ----------------------------- (Loss) income attributable to common stockholders     (385,768)        (492,554)  =============================  Continuing operations                           $  (379,341)  $     (490,817)  Discontinued operations                              (6,427)          (1,737)  -----------------------------  $  (385,768)  $     (492,554)  =============================  Weighted average common shares outstanding-basic    174,528,717      107,064,892  Basic (loss) earnings per share from:  Continuing operations                                 (2.17)  $        (4.58)  Discontinued operations                               (0.04)           (0.02)  -----------------------------  (2.21)  $        (4.60)  =============================  -****-  TABLE 6: PRODUCT REVENUES, VOLUMES, ASP  -***-  Quarter Ended   Years Ended December 31,  --------------------------- Revenues (in thousands)              December 31,      2013             2012  2013  --------------  --------------------------- Resources (1)                       $   11,258     $  59,661    $      96,126 Chemicals and Oxides (2)                55,415       219,071          207,566 Magnetic Materials and Alloys (3)       59,296       252,713          179,335 Rare Metals (4)                         14,497        86,241           77,642 Intersegments eliminations             (16,652)      (63,296)         (32,973)  --------------  --------------------------- Total Net Revenues                  $  123,814     $ 554,390    $     527,696  ==============  ===========================  Quarter Ended   Years Ended December 31,  --------------------------- Volumes (in metric tons)             December 31,      2013             2012  2013  --------------  ---------------------------  Resources                                1,034         3,926            2,661 Chemicals and Oxides                     1,760         6,588            4,631 Magnetic Materials and Alloys            1,353         5,884            3,115 Rare Metals                                 58           317              350 Intersegments eliminations              (1,004)       (3,597)          (1,550)  Quarter Ended   Years Ended December 31,  --------------------------- ASP per kilogram                     December 31,      2013             2012  2013  --------------  ---------------------------  Resources                           $    10.89     $   15.20    $       36.12 Chemicals and Oxides                $    31.48     $   33.25    $       44.82 Magnetic Materials and Alloys       $    43.82     $   42.95    $       57.57 Rare Metals                         $   249.93     $  272.05    $      221.83  ---------------------------------------------------------------------------- 1. The Resources segment includes operations at our Molycorp Mountain Pass facility where we conduct rare earth minerals extraction to produce: purified unseparated light rare earth concentrates, or LREC; separated rare earth oxides,  including lanthanum, cerium and neodymium/praseodymium; heavy rare earth concentrates, which include samarium, europium, gadolinium, or SEG, terbium, dysprosium and others; and a line of proprietary rare earth-based water treatment products, including SorbX(TM) and PhosFIX(TM).  2. The Chemicals and Oxides division includes: production of rare earths at our operations at Molycorp Silmet; heavy rare earths and other custom engineered materials from our facilities in Jiangyin, Jiangsu Province, China; and production of rare earths, salts of REEs, zirconium-based engineered materials and mixed rare earth/zirconium oxides from our 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 our 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 our MMA facility. 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 including gallium, indium, rhenium, tantalum, and niobium.  Our operating facilities in this segment are located in 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, 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  December 31, 2013  -----------------------------------  Year Ended      Quarter Ended  ----------------------------------- Net loss attributable to Molycorp stockholders                                $     (374,383)  $      (194,308) Certain non-cash and other items:  Stock-based compensation                          5,392             2,993  Inventory write-downs                            70,615            16,816  Impact of purchase accounting on  cost of inventory sold                            3,068            (1,376)  Impairment of Goodwill,  long-lived asset and intangibles                123,171           119,717  Investment write-downs                            9,414             9,414 Out-of-ordinary items: Water removal                                       19,228             5,385 Income tax effect of above adjustments             (35,949)          (15,065)  ----------------------------------- Adjusted net (loss) income                        (179,444)          (56,424) Dividends on Convertible Preferred Stock           (11,385)           (2,846)  ----------------------------------- Adjusted net loss attributed to common stockholders                                $     (190,829)  $       (59,270)  =================================== Weighted average common shares outstanding                                    174,528,717       208,080,170  ===================================  Adjusted net (loss) earnings per share      $        (1.09)  $         (0.28)  ===================================  -****-  -***-  EBITDA and Adjusted EBITDA  December 31, 2013  ----------------------------------  Year Ended     Quarter Ended  ---------------------------------- Operating loss                            $   (356,691)  $       (193,626) Depreciation and amortization included in costs of sales                      67,727             18,444 Depreciation, amortization and accretion        38,037             11,764  ---------------------------------- EBITDA                                        (250,927)          (163,418)  ----------------------------------  Stock-based compensation                         5,392              2,993 Inventory write-downs                           70,615             16,816 Impact of purchase accounting on cost of inventory sold                                   3,068             (1,376) Impairment of Goodwill, long-lived asset and intangibles                                123,171            119,717 Investment write-downs                           9,414              9,414 Water removal                                   19,228              5,385  ---------------------------------- Adjusted EBITDA                           $    (20,039)  $        (10,469)  ==================================  -****-  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 visithttp://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, please click on the following link: http://www.usetdas.com/pr/molycorp03032014.pdf  Maximum News Dissemination by FSCwire. http://www.fscwire.com  Provider ID: 00023033 -0- Mar/03/2014 22:31 GMT    
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