Boston, MA 06\/04\/2014 (wallstreetpr) \u2013 A pathetic first quarter and a myopic earnings guidance resulted in Molycorp Inc (NYSE:MCP)<\/b>\u2019s share price sliding down the avalanche, in May 2014. The company reported losses of 29 cents\/share \u2013 greater than the losses of 17 cents\/share in Q1-2013. Revenues too dropped 18%, to $118.5 million, YoY.<\/p>\n
Interruptions At Mountain Pass Worrying MCP<\/b><\/p>\n
Lower prices of the magnetic powders resulted in a significant drop in the company\u2019s earnings and revenues. It also registered low volumes of sales in the resources segment owing to systemic interruptions occurring at Molycorp Inc (NYSE:MCP)\u2019s Mountain Pass facility. This led to deteriorating production levels throughout the first quarter.<\/p>\n
Quarterly Production Estimates<\/b><\/p>\n
Net volumetric sales in Q1-2014 were 3,518 metric tons, increasing from 3,274 metric tons, recorded in 2013 during the same quarter. However, net average sales price reduced by 24.6%, amounting to $33.69 -per-kilogram, during the FY 2013-14.<\/p>\n
Molycorp Inc (NYSE:MCP)\u2019s resources segment sold out 988 metric tons of myriad rare earth oxides; however, its net production was 1,111 metric tonnes during Q1. At a selling price of $15.75\/kg, MCP garnered net revenues of $15.60 million.<\/p>\n
The Oxides and Chemicals segment resulted in volumetric sales of 1,926 metric tons, resulting in total revenues of $46.60 million. The increased year-over-year drop resulted in larger sales of relatively light-weight rare earth metals, in comparison to its heavier counterparts.<\/p>\n
MCP\u2019s CEO Acquires 50K Stakes<\/b><\/p>\n
On May 15, CEO of MCP, Geoffrey R. Bedford acquired 50K common shares in an open-market transaction. The transaction was valued at $2.76\/share, thus estimating at $138,000. With this purchase, the CEO now owns 318,947 MCP shares; the entire lot is valued at $880,294.<\/p>\n
Mounting Pressure, Enhanced Losses<\/b><\/p>\n
Molycorp Inc (NYSE:MCP) is in more trouble as the company is facing an intense, competitive pressure from Mexico, which opted to finance the rare-earth exploration. Such pressure is expected to depress the prices, thereby pushing its profitability far beyond MCP\u2019s grasp!<\/p>\n
MCP\u2019s Businesses Wane \u2013 Reaches A New Low!<\/b><\/p>\n
Molycorp Inc (NYSE:MCP) needs some additive measure to offset the negative rate of cash flow. Further, business prospects are being impaired owing to consistent operating losses. Soon after the announcement of the downgrading financial and operating earnings in Q1-2014, the traders lost faith, and the share price slumped within a day\u2019s notice, and steadied itself between 2.44 and 2.70; MCP reached its new low of 2.44 on June 3, 2014!<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 06\/04\/2014 (wallstreetpr) \u2013 A pathetic first quarter and a myopic earnings guidance resulted in Molycorp Inc (NYSE:MCP)\u2019s share price sliding down the avalanche, […]<\/p>\n","protected":false},"author":6,"featured_media":24685,"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":[3427,2857,1463],"stock_ticker":[],"class_list":["post-24684","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-molycorp-inc","tag-molycorp-inc-nysemcp","tag-nysemcp","entry"],"acf":[],"yoast_head":"\n