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  Maximum News Dissemination by FSCwire. http://www.fscwire.com  Provider ID: 00023359 -0- May/07/2014 22:30 GMT