Boston, MA 10\/29\/2013 (wallstreetpr) –\u00a0<\/b>American metals and minerals manufacturer\u00a0Molycorp Inc (NYSE:MCP) stocks continued on their downward spiral, dropping roughly 27% for over a month now, as investors\u2019 lack of confidence and negative sentiments prevailed over the stocks. Analysts estimate a drop in the earnings per share that Molycorp is expected to report over the next four quarters.<\/p>\n
The mining major has been reeling for a long time under slowing sales and revenue drops, owing to factors like continued operational roadblocks including lack of efficiencies in the commissioning of its Mountain Pass, California mining unit. Post reports about a further $100 million ramp-up plan, which eventually got shelved, Molycorp shares plummeted further by roughly 17%.<\/p>\n
Despite improving first-quarter net revenues of $146.4 million, up 9% from its 4Q2012 performance, the miner\u2019s second-quarter slipped, recording net-loss revenues of $136.9 million. The miner had forecasted sales shortfalls and reduced cash flows, apart from a strained overall market due to global economic weakness, price volatility and competition from illegal mining and China. The revenue drop is primarily because the low 55% production of Mountain Pass is cerium, a product with lower driving demand and sales than other rare earth metals. Rare earth metals are ores crucial to the strength and performance of the magnets used in high-tech products, ranging from cell phones to hybrid cars. Molycorp raised $414 million in cash from a January stock offering to meet operational costs, but dwindling revenues saw mounting cost overruns. By September 30, the company spent over double its projected budget. Investors now anticipate that the recent mining permission by Greenland Village, Colorado for mining rare earth metals would help bolster the ailing miner\u2019s revenues. Molycorp recently sold $200 million in shares to raise more funds. Along with the offering, underwriters had the option to buy up to an additional $30 million in shares. The miner is also in talks with Chilean miner Molibdenos y Metales S.A. (Molymet) for a private sale of $50 million of common stock, in case the public offering backfired.<\/p>\n
Molycorp shares fell by 1.53% to $5.15 from its previous $5.23 close on NYSE. After-hours trading registered a minor 0.39% rise to $5.17.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 10\/29\/2013 (wallstreetpr) –\u00a0American metals and minerals manufacturer\u00a0Molycorp Inc (NYSE:MCP) stocks continued on their downward spiral, dropping roughly 27% for over a month now, […]<\/p>\n","protected":false},"author":13,"featured_media":11735,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[3428,3427,2857,1463],"stock_ticker":[],"class_list":["post-11734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-mcp","tag-molycorp-inc","tag-molycorp-inc-nysemcp","tag-nysemcp","entry"],"acf":[],"yoast_head":"\n