Molycorp Reports First Quarter 2014 Financial Results

FSC / Press Release 
Molycorp Reports First Quarter 2014 Financial Results 
Greenwood Village, CO US, May 07, 2014 /FSC/ - Molycorp, Inc (MCP - New York),
Molycorp, Inc. (NYSE: MCP) ("Molycorp" or the "Company") today announced
financial and operating results for the first quarter 2014. 
The Company reported first quarter product sales volume of 3,518 metric tons
(mt), a 10% increase over the fourth quarter 2013, at an average selling price
("ASP") of $33.69 per kilogram. Net revenues for the first quarter were $118.5
million, a 4% decrease from the fourth quarter 2013. 
The Company reported a net loss of $0.40 per share for the quarter. The Company
reported a net loss of $0.29 per share for the quarter on an adjusted non-GAAP
basis. 
Molycorp's Resources segment, comprised of its Mountain Pass, California rare
earth mine and processing facility, sold 988 mt of rare earth oxide ("REO")
equivalent products for $15.6 million in revenues. ASP for the quarter was
$15.75/kg. Production volume for the quarter was 1,111 mt. 
The Company's Chemicals and Oxides segment sold 1,926 mt and reported $46.6
million in revenues. The increase in volume was offset by lower ASP due to a
product mix with less heavy rare earth materials. 
Its Magnetic Materials and Alloys segment sold 1,374 mt of magnetic powders.
Revenues for the segment were $55.9 million on ASP of $40.71/kg. 
Finally, Molycorp's Rare Metals segment reported sales volume of 101 mt on
revenues of $20.4 million. ASP for the segment was $202.21/kg. 
The Company reported that its production ramp-up at Mountain Pass is continuing
as are process optimization and debottlenecking efforts that are helping to
strengthen the system, increase recoveries, and increase throughput. 
FIRST QUARTER 2014 RESULTS 
The Company reported consolidated net revenues of $118.5 million, a 4% decrease
over the fourth 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 magnetic powders, and
lower sales volumes in its Resources segment. 
During the first quarter, the Company sold 3,518 mt of product at an ASP of
$33.69 per kilogram, and generated a gross loss of $23.1 million. This compares
to sales volumes of 3,201 mt at an ASP of $36.68 per kilogram and a gross loss
of $27.0 million during the fourth quarter of 2013. The Company produced 1,111
metric tons of rare earth oxides at its Mountain Pass facility during the first
quarter. 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 $88.9 million,
or $0.40 per share. Adjusted loss per share of $0.29 in the first quarter does
not reflect out-of-ordinary business expenses, and certain other non-cash items. 
The Company reported negative cash flows from operating activities of $45.8
million during the first quarter, and had $236.1 million in cash and cash
equivalents as of March 31, 2014. 
During the three months ended March 31, 2014, Molycorp's capital expenditures
were $29.8 million on a cash basis. 
CONFERENCE CALL TOMORROW AT 9:00 A.M. EASTERN STANDARD TIME 
Molycorp will conduct a conference call on Thursday, May 8, 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) 515-2909 and reference passcode number 38305260.
Those calling from outside the U.S. should dial +1 (617) 399-5123 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, OIBDA and ADJUSTED OIBDA 
Adjusted Net Loss excludes certain non-cash items and other out-of-ordinary
business expense and operational expansion items. The Company defines OIBDA as
operating income before depreciation, amortization and accretion. Adjusted OIBDA
consists of OIBDA excluding certain non-cash items and other out-of-ordinary
business expense and operational expansion items. Adjusted Net Loss, OIBDA and
Adjusted OIBDA are all non-GAAP financial measures. There have been no changes
in the calculation method of previously disclosed non-GAAP financial measures.
The Company's management believes adjusting out these items from Net Loss and
OIBDA, 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 that Adjusted Net Loss, OIBDA and Adjusted
OIBDA 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.
 Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except shares and per share amounts) 
-***- 
March 31, 2014  December 31, 2013 
------------------------------------ 
ASSETS
Current assets: 
Cash and cash equivalents                $        236,050  $        314,317 
Trade accounts receivable, net                     51,591            61,757 
Inventory                                         166,630           171,783 
Prepaid expenses and other current 
assets                                     34,854            29,210 
------------------------------------ 
Total current assets                          489,125           577,067 
------------------------------------
Non-current assets: 
Deposits                                           26,005            25,997 
Property, plant and equipment, net              1,756,090         1,762,874 
Inventory                                          24,996            25,329 
Intangible assets, net                            324,964           330,867 
Investments                                        47,152            48,875 
Goodwill                                          228,750           228,750 
Other non-current assets                            6,554             7,043 
------------------------------------ 
Total non-current assets                    2,414,511         2,429,735 
------------------------------------ 
Total assets                         $      2,903,636  $      3,006,802 
==================================== 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: 
Trade accounts payable                   $         63,670  $         84,449 
Accrued expenses                                   55,426            48,501 
Debt and capital lease obligations                 16,885            16,362 
Other current liabilities                           3,582             4,063 
------------------------------------ 
Total current liabilities                     139,563           153,375 
------------------------------------
Non-current liabilities: 
Asset retirement obligation                        16,218            16,966 
Deferred tax liabilities                           79,284            85,481 
Debt and capital lease obligations              1,371,924         1,363,916 
Other non-current liabilities                       9,850            10,002 
------------------------------------ 
Total non-current liabilities               1,477,276         1,476,365 
------------------------------------ 
Total liabilities                    $      1,616,839  $      1,629,740 
------------------------------------
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value; 350,000,000
shares authorized at March 31, 2014
and December 31, 2013                                    245               241
Preferred stock, $0.001 par value; 5,000,000
shares authorized at December 31, 2013                     -                 2 
Additional paid-in capital                      2,191,404         2,194,405 
Accumulated other comprehensive loss               (7,303)           (6,451) 
Accumulated deficit                              (926,535)         (840,474) 
------------------------------------ 
Total Molycorp stockholders' equity         1,257,811         1,347,723 
Noncontrolling interests                       28,986            29,339 
------------------------------------ 
Total stockholders' equity                  1,286,797         1,377,062 
------------------------------------ 
Total liabilities and stockholders' 
equity                           $      2,903,636  $      3,006,802 
==================================== 
-****- 
TABLE 2: INCOME STATEMENTS AND EARNINGS PER SHARE 
MOLYCORP, INC.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except shares and per share amounts) 
-***- 
First   Fourth        First 
Quarter  Quarter      Quarter 
--------------------------------------- 
2014         2013        2013 
---------------------------------------Revenues                                
$   118,526  $   123,814  $   145,398
Costs of sales: 
Costs excluding depreciation 
and amortization                       (125,473)    (132,419)    (135,531) 
Depreciation and amortization             (16,147)     (18,444)     (14,172) 
---------------------------------------
Gross loss                                   (23,094)     (27,049)      (4,305)
Operating expenses: 
Selling, general and administrative       (17,956)     (30,714)     (26,551) 
Depreciation, amortization and 
accretion                                (7,201)     (11,764)      (8,210) 
Research and development                   (2,766)      (4,696)      (6,405) 
Impairment of goodwill and other 
long-lived assets                           -     (119,403)           - 
--------------------------------------- 
Operating loss                      (51,017)    (193,626)     (45,471) 
---------------------------------------
Other expenses:
Other expense (a)                                474      (11,326)        (451) 
Interest expense, net of capitalized 
interest                            (35,639)     (24,877)     (11,649) 
--------------------------------------- 
Loss before income taxes and 
equity earnings                 (86,182)    (229,829)     (57,571) 
Income tax benefit                    1,907       32,021       22,490 
Equity in loss of affiliates         (1,723)        (480)      (3,072) 
--------------------------------------- 
Net loss                            (85,998)    (198,288)     (38,153) 
Net income attributable to 
noncontrolling interests             (63)       3,980         (818) 
--------------------------------------- 
Net loss attributable to Molycorp 
stockholders                         $   (86,061) $  (194,308) $   (38,971) 
======================================= 
Earnings per share of common stock: 
Net loss attributable to Molycorp 
stockholders                   $   (86,061) $  (194,308) $   (38,971) 
Dividends on Convertible Preferred 
Stock                             (2,846)      (2,846)      (2,846) 
--------------------------------------- 
Loss attributable to common 
stockholders                   $   (88,907) $  (197,154) $   (41,817) 
Weighted average common shares 
outstanding-basic              221,374,589  208,080,170  153,314,081 
--------------------------------------- 
Basic loss per share:             $     (0.40) $     (0.95) $     (0.27) 
======================================= 
Weighted average common shares 
outstanding-diluted             221,374,589  208,080,170  153,314,081 
--------------------------------------- 
Diluted loss per share:           $     (0.40) $     (0.95) $     (0.27) 
======================================= 
-****- 
(a) Includes net results from discontinued operations., which were nominal in
the first quarter of 2014 and 2013, and $1,237 in the fourth quarter of 2013. 
TABLE 3: STATEMENTS OF CASH FLOWS 
MOLYCORP, INC
Consolidated Statements of Cash Flows (Unaudited)
(In thousands) 
-***- 
Three Months Ended March 31, 
------------------------------- 
2014           2013 
-------------------------------
Cash flows from operating activities: 
Net loss                                      $     (85,998) $      (38,153)
Adjustments to reconcile net loss to net 
cash from operating activities: 
Depreciation, amortization and accretion         23,348          22,532 
Deferred income tax benefit                      (6,097)        (29,475) 
Inventory write-downs                            17,371          22,125 
Release of inventory step-up value                  577           2,497 
Stock-based compensation                            822            (325) 
Foreign exchange loss                                 4           2,197 
Equity in results of affiliates                   1,723           3,072 
Other operating adjustments                         250          (5,221) 
Net change in operating assets and 
liabilities                             2,215         (15,877) 
------------------------------- 
Net cash used in operating activities       (45,785)        (36,628) 
-------------------------------
Cash flows from investing activities: 
Investment in joint ventures                              -          (3,423) 
Capital expenditures                                (29,752)       (181,103) 
Other investing activities                              493             (90) 
------------------------------- 
Net cash used in investing activities       (29,259)       (184,616) 
-------------------------------
Cash flows from financing activities: 
Repayments of debt                                     (489)        (11,108) 
Net proceeds from sale of common stock                    -         248,147 
Issuance of 5.50% Convertible Notes                       -         165,600 
Payments of preferred dividends                      (2,846)         (2,846) 
Dividend paid to noncontrolling interests              (435)         (1,286) 
Other financing activities                            1,323             (79) 
------------------------------- 
Net cash (used in) provided by 
financing activities                       (2,447)        398,428 
Effect of exchange rate changes on cash                (776)           (140) 
------------------------------- 
Net change in cash and cash 
equivalents                               (78,267)        177,044
Cash and cash equivalents at beginning
 of the period                                         314,317         227,790 
------------------------------- 
Cash and cash equivalents at end of period       $     236,050  $      404,834 
=============================== 
-****- 
TABLE 4: SEGMENT INFORMATION 
-***- 
Chemicals     Magnetic     Rare 
and    Materials   Metals
Three months ended March 31, 2014 Resources    Oxides   and Alloys
----------------------------------------------------------------------------- 
(In thousands)
Revenues:
  External                         $   3,111  $ 40,271  $   54,720  $ 20,424 
Inter-segment                      12,453     6,285       1,218         - 
------------------------------------------
Total revenues                     $  15,564  $ 46,556  $   55,938  $ 20,424 
==========================================
OIBDA                              $ (36,445) $  3,299  $   13,676  $    (70)
Depreciation, amortization and
accretion                            (13,091)   (3,872)     (4,237)   (2,093) 
------------------------------------------
Operating (loss) income            $ (49,536) $   (573) $    9,439  $ (2,163) 
==========================================
Other income
Interest expense, net of
capitalized interest 
Loss before income taxes and equity
earnings 
Corporate   Eliminations(b)      Total 
and other                      Molycorp,
Three months ended March 31, 2014     (a)                            Inc.
--------------------------------------------------------------------------- 
(In thousands)
Revenues:
  External                                   $              -   $   118,526 
Inter-segment                                      (19,956)            - 
------------------------------
Total revenues                               $        (19,956)  $   118,526 
==============================
OIBDA
Depreciation, amortization and
accretion 
Operating (loss) income              (7,109) $         (1,075)  $  (51,017) 
Other income                                                            474
Interest expense, net of
capitalized interest                                               (35,639) 
-----------
Loss before income taxes and equity
earnings                                                       $   (86,182) 
=========== 
-****- 
-***- 
Chemicals and  Magnetic Rare
Three months ended December 31,                Oxides     Materials     Metals
2013                            Resources                and Alloys
-------------------------------------------------------------------------------- 
(In thousands)
Revenues:
  External                     $     3,386  $    46,635  $    59,296  $  14,497 
Inter-segment                     7,872        8,780            -          - 
------------------------------------------------- 
Total revenues                 $    11,258  $    55,415  $    59,296  $  14,497 
=================================================
OIBDA                          $   (72,865) $   (62,343) $     2,076  $ (16,686)
Depreciation, amortization and
accretion                          (14,782)      (5,667)      (7,452)    (2,250) 
-------------------------------------------------
Operating loss                 $   (87,647) $   (68,010) $    (5,376) $ (18,936) 
=================================================
Other expense
Interest expense, net of
capitalized interest 
Loss before income taxes and equity
earnings 
Corporate                          Total
Three months ended December 31,     and other                        Molycorp,
2013                                 (a)        Eliminations(b)        Inc.
------------------------------------------------------------------------------- 
(In thousands)
Revenues:
  External                                     $              -   $   123,814 
Inter-segment                                        (16,652)            - 
-------------------------------- 
Total revenues                                 $        (16,652)  $   123,814 
================================
OIBDA
Depreciation, amortization and
accretion 
Operating loss                        (13,805) $            148   $  (193,626) 
Other expense                                                         (11,326)
Interest expense, net of
capitalized interest                                                  (24,877) 
------------- 
Loss before income taxes and equity                               $  (229,829)
earnings 
============= 
-****- 
-***- 
Chemicals and  Magnetic    Rare 
Oxides      Materials  Metals
Three months ended March 31, 2013  Resources               and Alloys
-------------------------------------------------------------------------------- 
(In thousands)
Revenues:
  External                       $   14,658  $     49,600  $   54,678  $ 26,462 
Inter-segment                      2,645        14,610           -         - 
-----------------------------------------------
Total revenues                   $   17,303  $     64,210  $   54,678  $ 26,462 
===============================================
OIBDA                            $  (31,073) $      2,231  $   12,243  $  5,553
Depreciation, amortization and
accretion                            (9,053)       (5,537)     (5,480)   (2,253) 
-----------------------------------------------
Operating (loss) income          $  (40,126) $     (3,306) $    6,763  $  3,300 
===============================================
Other expense
Interest expense, net of
capitalized interest 
Loss before income taxes and equity
earnings 
Corporate   Eliminations(b)      Total 
and other                      Molycorp,
Three months ended March 31, 2013      (a)                            Inc.
------------------------------------------------------------------------------- 
(In thousands)
Revenues:
  External                                     $              -   $   145,398 
Inter-segment                                        (17,255)            - 
------------------- -----------
Total revenues                                 $        (17,255)  $   145,398 
================================
OIBDA
Depreciation, amortization and
accretion 
Operating (loss) income            $  (11,564) $           (538)  $   (45,471) 
Other expense                                                            (451)
Interest expense, net of
capitalized interest                                                  (11,649) 
-------------
Loss before income taxes and equity
earnings                                                          $   (57,571) 
============= 
-****- 
a. Includes business development costs, personnel costs, stock-based
compensation, accounting and legal fees, occupancy expense, information
technology costs and interest expense. 
b. Consist of inter-segment sales and gross profits elimination as well as
eliminations of lower of cost or market adjustments related to inter-segment
inventory. 
TABLE 5: PRODUCT REVENUES, VOLUMES, ASP 
-***- 
First          Fourth           First 
Quarter         Quarter         Quarter 
----------------------------------------------
Revenues (in thousands)             2014            2013            2013
-------------------------------------------------------------------------------- 
Resources (1)                     $     15,564  $       11,258  $       17,303
Chemicals and Oxides (2)                46,556          55,415          64,210
Magnetic Materials and Alloys (3)       55,938          59,296          54,678
Rare Metals (4)                         20,424          14,497          26,462
Inter-segment eliminations             (19,956)        (16,652)        (17,255) 
---------------------------------------------
Total Net Revenues                $    118,526  $      123,814  $      145,398 
==============================================
Volumes (in metric tons)
--------------------------------------------------------------------------------
Resources                                  988           1,034             763
Chemicals and Oxides                     1,926           1,760           1,866
Magnetic Materials and Alloys            1,374           1,353           1,263
Rare Metals                                101              58              81
Inter-segment eliminations                (871)         (1,004)           (699)
ASP per kilogram
--------------------------------------------------------------------------------
Resources                         $      15.75  $        10.89  $        22.68
Chemicals and Oxides              $      24.17  $        31.48  $        34.41
Magnetic Materials and Alloys     $      40.71  $        43.82  $        43.29
Rare Metals                       $     202.21  $       249.93  $       326.69 
-****- 
1. The Resources segment includes operations at our Molycorp Mountain Pass
facility where we conduct rare earth minerals extraction and processing 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, terbium,
dysprosium and others; and a line of proprietary rare earth-based water
treatment products, including SorbX(r) and PhosFIX(TM). 
2. The Chemicals and Oxides division includes: production of rare earths at our
operations at Molycorp Silmet;  separated heavy rare earth oxides 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 earths 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 in
Tolleson, Arizona. Neo Powders(TM) are used in the production of high
performance, bonded NdFeB permanent magnets, which are found in micro-motors,
precision motors, sensors, and other applications requiring high levels of
magnetic strength, flexibility, small size, reduced weight, and energy efficient
performance. 
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 are distributed in several
locations: Quapaw, Oklahoma; Blanding, Utah; Peterborough, Ontario, Canada;
Sagard, Germany; Stade, Germany; Hyeongok Industrial Zone in South Korea; and
Sillamae, Estonia. Applications from products made in this segment include
wireless technologies, LEDs, flat panel displays, turbines, solar power
catalysts, steel additives, electronics applications, and many others. 
TABLE 6: NON-GAAP ADJUSTED NET LOSS, OIBDA and ADJUSTED OIBDA RECONCILIATION
(In thousands, except shares and per share data) 
-***- 
Adjusted Net Loss 
First        Fourth          First 
Quarter       Quarter        Quarter 
-------------------------------------------- 
2014           2013           2013 
-------------------------------------------- 
Net loss attributable to Molycorp
 stockholders                       $     (86,061) $    (194,308) $     (38,971)
Certain non-cash and other items:
  Stock-based compensation                    822          2,993           (325)
  Inventory write-downs                    15,693         16,816         19,205
  Impact of purchase accounting 
on cost of inventory sold                 577         (1,376)         2,497
  Impairment of goodwill, 
long-lived asset and intangibles            -        119,717              -
  Investment write-downs                        -          9,414              -
Out-of-ordinary items: 
Water removal                            8,102          5,385          3,734
Income tax effect of above 
adjustments                               (160)       (15,065)        (9,793) 
--------------------------------------------
Adjusted net loss                         (61,027)       (56,424)       (23,653)
Dividends on Convertible
  Preferred Stock                          (2,846)        (2,846)        (2,846) 
--------------------------------------------
Adjusted net loss attributed to
  common stockholders               $     (63,873) $     (59,270) $     (26,499) 
============================================
Weighted average common shares 
outstanding                        221,374,589    208,080,170    153,314,081 
============================================
Adjusted net loss per share         $       (0.29) $       (0.28) $       (0.17) 
============================================ 
-****- 
-***- 
OIBDA and Adjusted OIBDA 
First      Fourth             First 
Quarter     Quarter           Quarter 
----------------------------------------
Consolidated                              2014        2013              2013
------------------------------------------------------------------------------
Operating loss                        $ (51,017) $ (193,626) $        (45,471)
Depreciation and amortization
 included in costs of sales              16,147      18,444            14,172
Depreciation, amortization
  and accretion                           7,201      11,764             8,210 
----------------------------------------
OIBDA                                   (27,669)   (163,418)          (23,089) 
======================================== 
Adjusted OIBDA by Segment
------------------------------------------------------------------------------
Resources
OIBDA                                 $ (36,445) $  (72,865) $        (31,073)
Stock-based compensation                    234         306               (33)
Inventory write-downs                    15,693      16,816            19,205
Impairment of goodwill, long-lived
  asset and intangibles                       -      30,421                 -
Investment write-downs                        -       8,000                 -
Water removal                             8,102       5,385             3,734 
----------------------------------------
Adjusted OIBDA - Resources            $ (12,416) $  (11,937) $         (8,167) 
----------------------------------------
Chemicals and Oxides
OIBDA                                 $   3,299  $  (62,343) $          2,231
Stock-based compensation                    193         172               (19)
Impact of purchase accounting
 on cost of inventory sold                   25      (1,991)            2,015
Impairment of goodwill,
 long-lived asset and intangibles             -      67,247                 - 
----------------------------------------
Adjusted OIBDA - Chemicals and Oxides $   3,517  $    3,085  $          4,227 
----------------------------------------
Magnetic Materials and Alloys
OIBDA                                    13,676       2,076            12,243
Stock-based compensation                    144         182               (20)
Impact of purchase accounting on
 cost of inventory sold                     (45)          6               (63)
Impairment of goodwill,
 long-lived asset and intangibles             -      10,207                 - 
----------------------------------------
Adjusted OIBDA - Magnetic Materials
  and Alloys                          $  13,775  $   12,471  $         12,160 
----------------------------------------
Rare Metals
OIBDA                                       (70)    (16,686)            5,553
Stock-based compensation                     22          26                (3)
Impact of purchase accounting
  on cost of inventory sold                 598         609               545
Impairment of goodwill,
  long-lived asset and intangibles            -      11,842                 -
Investment write-downs                        -       1,414                 - 
----------------------------------------
Adjusted OIBDA - Rare Metals                550      (2,795)            6,095 
----------------------------------------
Corporate and other                      (6,823)    (11,441)          (11,756)
Eliminations                             (1,075)        148              (538) 
----------------------------------------
Adjusted OIBDA - Consolidated         $  (2,472) $  (10,469) $          2,021 
======================================== 
-****- 
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 26 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(r) 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 optimize production at its Mountain Pass rare earth mine
and processing facility, which we refer to as the Molycorp Mountain Pass
facility, and the ability to develop internal and external demand for REO and
other downstream products, including the ability to operate at commercial
production rates and competitive cash production costs, in each case within the
projected time frame; the success of Molycorp's cost mitigation efforts in
connection with the optimization of 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 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 current stockholder class action
litigation and derivative litigation, 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, 2013 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.fscwire.com/sites/default/files/news_release_pdf/molycorp05072014.pdf 
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