Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Rare earth producer Molycorp reported a third-quarter loss on Thursday, but investors liked top line growth that jumped 49% to $205.6 million
In after hours trade on Thursday Molycorp was changing hands for $8.68, up $0.62 or more than 7% as investors digested the company’s Q3 results.
The Colorado-based company sold 4,391 tonnes of total rare earth and rare metal products at a loss of $18.9 million or 19 cents a share on the back of higher production costs and significantly lower prices for its rare earth oxides.
Molycorp also took a once-off charge related to the $1.3 billion takeover of Neo Material Technologies, now known as Molycorp Canada, and inventory writedowns.
Molycorp – destined to become the number one producer of the 17 elements outside China – is aiming for an ultimate production capacity target of 40,000 tonnes per annum from its Mountain Pass in California.
