Molycorp (NYSE: MCP) Reports Third Quarter 2014 Financial Results
(Thomson Reuters ONE) -
Greenwood Village, CO (November 5, 2014) - Molycorp, Inc. (NYSE: MCP)
("Molycorp" or the "Company") today announced financial and operating results
for the third quarter 2014.
The Company reported consolidated net revenues in the third quarter of 2014 of
$123.9 million, a 6% increase over the preceding quarter. Product sales volume
in the quarter was 3,356 metric tons (mt), a 12% sequential increase, at an
average selling price ("ASP") of $36.93/kg, a 5% decrease over the preceding
quarter's ASP of $39.02/kg.
The Company reported a net loss of $0.47 per share for the quarter, and a net
loss of $0.40 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 1,085 mt of rare earth oxide ("REO")
equivalent products for $13.9 million in revenues, a 39% increase over the
second quarter of 2014. ASP for the quarter was $12.84/kg, which was 25% higher
than the preceding quarter due to a more favorable product mix. Production
volume for the quarter was 691 mt, a 58% decrease over second quarter production
of 1,639 mt. Cash cost for production increased to $33.80/kg, a 104% increase
over production cash costs of $16.54/kg in the previous quarter, largely due to
the limited availability of hydrochloric acid needed for production.
The Company's Chemicals and Oxides segment sold 1,651 mt and reported $43.5
million in revenues. The slight sequential increase in volume was offset by
lower ASP of $26.33/kg. due to a less favorable product mix.
Its Magnetic Materials and Alloys segment sold 1,516 mt of magnetic powders and
reported third quarter revenues of $62.7 million on ASP of $40.42/kg. This
compares to second quarter revenues of $54.4 million on an ASP of $39.31/kg. for
the segment.
Finally, Molycorp's Rare Metals segment reported sales volume of 104 mt on
revenues of $21.3 million. ASP for the segment was $204.51/kg. Second quarter
revenues were $15.9 million on ASP of $201.81/kg.
THIRD QUARTER 2014 RESULTS
During the third quarter, the Company sold 3,356 mt of product at an ASP of
$36.93/kg, and generated a gross loss of $15.1 million. This compares to sales
volumes of 2,996 mt at an ASP of $39.02/kg and a gross loss of $16.6 million
during the second quarter of 2014.
Molycorp reported a loss attributable to common stockholders of $105.2 million,
or $0.47 per share. Adjusted loss per share of $0.40 in the third 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 $28.2
million for the quarter ended September 30, 2014, and had $313.5 million in cash
and cash equivalents as of September 30, 2014.
During the three months ended September 30, 2014, Molycorp's capital
expenditures were $18.2 million on a cash basis.
CONFERENCE CALL TOMORROW AT 9:00 A.M. EASTERN STANDARD TIME
Molycorp will conduct a conference call on Thursday, November 6, 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 (877) 474-9501 and reference passcode number 59522823.
Those calling from outside the U.S. should dial +1 (857) 244-7554 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(at)molycorp.com
Brian Blackman, +1 (303) 843-8067
Vice President Investor Relations
brian.blackman(at)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)
September December
30, 2014 31, 2013
---------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 313,477 $ 314,317
Trade accounts receivable, net 53,229 61,757
Inventory 166,936 171,783
Prepaid expenses and other current assets 27,175 29,210
---------------- --------------
Total current assets 560,817 577,067
---------------- --------------
Non-current assets:
Deposits 29,999 25,997
Property, plant and equipment, net 1,736,872 1,762,874
Inventory 25,530 25,329
Intangible assets, net 312,878 330,867
Investments 32,210 48,875
Goodwill 228,750 228,750
Other non-current assets 34,203 7,043
---------------- --------------
Total non-current assets 2,400,442 2,429,735
---------------- --------------
Total assets $ 2,961,259 $ 3,006,802
---------------- --------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 58,272 $ 84,449
Accrued expenses 66,727 48,501
Debt and capital lease obligations 12,769 16,362
Other current liabilities 6,922 4,063
---------------- --------------
Total current liabilities 144,690 153,375
---------------- --------------
Non-current liabilities:
Asset retirement obligation 16,681 16,966
Deferred tax liabilities 75,162 85,481
Debt and capital lease obligations 1,582,802 1,363,916
Other non-current liabilities 14,286 10,002
---------------- --------------
Total non-current liabilities 1,688,931 1,476,365
---------------- --------------
Total liabilities $ 1,833,621 $ 1,629,740
---------------- --------------
Stockholders' equity:
Common stock, $0.001 par value; 700,000,000
shares authorized at September 30, 2014 and
350,000,000 at 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 2,232,390 2,194,405
Accumulated other comprehensive loss (15,704 ) (6,451 )
Accumulated deficit (1,115,614 ) (840,474 )
---------------- --------------
Total Molycorp stockholders' equity 1,101,317 1,347,723
Noncontrolling interests 26,321 29,339
---------------- --------------
Total stockholders' equity 1,127,638 1,377,062
---------------- --------------
Total liabilities and stockholders' equity $ 2,961,259 $ 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)
Second
Third Quarter Quarter Third Quarter
2014 2014 2013
--------------- --------------- --------------
Revenues $ 123,937 $ 116,907 $ 149,066
Costs of sales:
Costs excluding depreciation and
amortization (119,633 ) (113,399 ) (150,444 )
Depreciation and amortization (19,382 ) (20,079 ) (16,400 )
--------------- --------------- --------------
Gross loss (15,078 ) (16,571 ) (17,778 )
Operating expenses:
Selling, general and
administrative (21,907 ) (20,424 ) (24,468 )
Depreciation, amortization and
accretion (8,093 ) (7,257 ) (10,072 )
Research and development (4,353 ) (4,483 ) (5,565 )
Impairment of long-lived assets - - (1,118 )
--------------- --------------- --------------
Operating loss (49,431 ) (48,735 ) (59,001 )
--------------- --------------- --------------
Other (expenses) income:
Other (expense) income (2,611 ) 296 (891 )
Impairment of investment (12,000 ) - -
Interest expense, net of
capitalized interest (35,442 ) (41,285 ) (16,289 )
--------------- --------------- --------------
Loss before income taxes and
equity earnings (99,484 ) (89,724 ) (76,181 )
Income tax benefit (3,572 ) 7,427 12,902
Equity in loss of affiliates (2,092 ) (1,553 ) (2,334 )
--------------- --------------- --------------
Loss from continuing operations (105,148 ) (83,850 ) (65,613 )
Loss from discontinued
operations, net of tax - - (4,186 )
--------------- --------------- --------------
Net loss (105,148 ) (83,850 ) (69,799 )
Net income attributable to
noncontrolling interests (31 ) (49 ) (130 )
--------------- --------------- --------------
Net loss attributable to
Molycorp stockholders $ (105,179 ) $ (83,899 ) $ (69,929 )
--------------- --------------- --------------
Earnings per share of common
stock:
Net loss attributable to
Molycorp stockholders $ (105,179 ) $ (83,899 ) $ (69,929 )
Dividends on Convertible
Preferred Stock - - (2,846 )
--------------- --------------- --------------
Loss attributable to common
stockholders $ (105,179 ) $ (83,899 ) $ (72,775 )
Weighted average common shares
outstanding-basic 224,270,303 224,223,506 168,114,266
--------------- --------------- --------------
Basic loss per share: $ (0.47 ) $ (0.37 ) $ (0.43 )
--------------- --------------- --------------
Weighted average common shares
outstanding-diluted 224,270,303 224,223,506 168,114,266
--------------- --------------- --------------
Diluted loss per share: $ (0.47 ) $ (0.37 ) $ (0.43 )
--------------- --------------- --------------
TABLE 3: STATEMENTS OF CASH FLOWS
MOLYCORP, INC
Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
Nine Months Ended September
30,
----------------------------
2014 2013
-------------- -------------
Cash flows from operating activities:
Net loss $ (274,998 ) $ (178,639 )
Adjustments to reconcile net loss to net cash from
operating activities:
Depreciation, amortization and accretion 78,161 75,870
Deferred income tax benefit (18,809 ) (36,399 )
Inventory write-downs 51,638 74,475
Release of inventory step-up value 742 5,650
Impairment of investment 12,000 -
Impairment of long-lived assets - 4,949
Stock-based compensation 3,784 2,399
Equity in results of affiliates 5,368 8,690
Other operating adjustments 8,766 (1,796 )
Net change in operating assets and liabilities (13,058 ) (45,212 )
-------------- -------------
Net cash used in operating activities (146,406 ) (90,013 )
-------------- -------------
Cash flows from investing activities:
Investment in joint ventures (703 ) (3,423 )
Capital expenditures (62,837 ) (334,597 )
Recovery from insurance claims 12,900 -
Other investing activities 460 (364 )
-------------- -------------
Net cash used in investing activities (50,180 ) (338,384 )
-------------- -------------
Cash flows from financing activities:
Repayments of debt (5,879 ) (25,990 )
Net proceeds from sale of common stock - 248,150
Issuance of 5.50% Convertible Notes - 165,600
Debt issuance costs (14,768 ) -
Net proceeds from the Financings 250,000 -
Partial repayment of convertible notes (27,495 ) -
Payments of preferred dividends (2,846 ) (8,539 )
Dividend paid to noncontrolling interests (3,170 ) (4,472 )
Other financing activities 1,626 (797 )
-------------- -------------
Net cash (used in) provided by financing
activities 197,468 373,952
Effect of exchange rate changes on cash (1,722 ) 569
-------------- -------------
Net change in cash and cash equivalents (840 ) (53,876 )
Cash and cash equivalents at beginning of the
period 314,317 227,790
-------------- -------------
Cash and cash equivalents at end of period $ 313,477 $ 173,914
-------------- -------------
TABLE 4: SEGMENT INFORMATION
Three months
ended Magnetic Corporate Total
September Chemicals Materials Rare and other Molycorp,
30, 2014 Resources and Oxides and Alloys Metals (a) Eliminations(b) Inc.
--------------------------- ------------ ------------ ------------ ------------ ----------------- ------------
(In thousands)
Revenues:
External $ 4,509 $ 36,814 $ 61,345 $ 21,269 $ - $ 123,937
Inter-segment 9,424 6,658 1,342 - (17,424 ) -
------------- ------------ ------------ ------------ ----------------- ------------
Total
revenues $ 13,933 $ 43,472 $ 62,687 $ 21,269 $ (17,424 ) $ 123,937
------------- ------------ ------------ ------------ ----------------- ------------
OIBDA $ (31,087 ) $ 4,251 $ 13,715 $ 595
Depreciation,
amortization
and accretion (17,332 ) (3,823 ) (4,232 ) (2,034 )
------------- ------------ ------------ ------------
Operating
(loss) income $ (48,419 ) $ 428 $ 9,483 $ (1,439 ) $ (9,065 ) $ (419 ) $ (49,431 )
------------- ------------ ------------ ------------
Other income (2,611 )
Impairment of
investment (12,000 )
Interest
expense, net
of
capitalized
interest (35,442 )
------------
Loss before
income taxes
and equity
earnings $ (99,484 )
------------
Three months Magnetic Corporate Total
ended June Chemicals Materials Rare and other Molycorp,
30, 2014 Resources and Oxides and Alloys Metals (a) Eliminations(b) Inc.
--------------------------- ------------ ------------ ------------ ------------ ----------------- ------------
(In thousands)
Revenues:
External $ 2,331 $ 45,437 $ 53,195 $ 15,944 $ - $ 116,907
Inter-segment 7,706 3,195 1,165 - (12,066 ) -
------------- ------------ ------------ ------------ ----------------- ------------
Total
revenues $ 10,037 $ 48,632 $ 54,360 $ 15,944 $ (12,066 ) $ 116,907
------------- ------------ ------------ ------------ ----------------- ------------
OIBDA $ (30,298 ) $ 4,836 $ 11,812 $ 740
Depreciation,
amortization
and accretion (17,009 ) (3,908 ) (4,261 ) (2,101 )
------------- ------------ ------------ ------------
Operating
(loss) income $ (47,307 ) $ 928 $ 7,551 $ (1,361 ) $ (9,083 ) $ 537 $ (48,735 )
------------- ------------ ------------ ------------
Other income 296
Interest
expense, net
of
capitalized
interest (41,285 )
------------
Loss before
income taxes
and equity
earnings $ (89,724 )
------------
Three months
ended Magnetic Corporate Total
September Chemicals Materials Rare and other Molycorp,
30, 2013 Resources and Oxides and Alloys Metals (a) Eliminations(b) Inc.
--------------------------- ------------ ------------ ------------ ------------- ----------------- ------------
(In thousands)
Revenues:
External $ 4,655 $ 50,791 $ 72,626 $ 20,994 - $ 149,066
Inter-segment 8,858 7,174 - - (16,032 ) -
------------- ------------ ------------ ------------ ----------------- ------------
Total
revenues $ 13,513 $ 57,965 $ 72,626 $ 20,994 $ (16,032 ) $ 149,066
------------- ------------ ------------ ------------ ----------------- ------------
OIBDA $ (44,673 ) $ 4,561 $ 18,520 $ (911 )
Depreciation,
amortization
and accretion (10,853 ) (5,960 ) (7,458 ) (2,144 )
------------- ------------ ------------ ------------
Operating
(loss) income $ (55,526 ) $ (1,399 ) $ 11,062 $ (3,055 ) $ (10,806 ) $ 723 $ (59,001 )
------------- ------------ ------------ ------------
Other income (891 )
Interest
expense, net
of
capitalized
interest (16,289 )
------------
Loss before
income taxes
and equity
earnings $ (76,181 )
------------
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, SALES VOLUME, ASP
Third Second
Quarter Quarter Third Quarter
Revenues (in thousands) 2014 2014 2013
----------------------------------------------------- -------------------------
Resources (1) $ 13,933 $ 10,037 $ 13,513
Chemicals and Oxides (2) 43,472 48,632 57,965
Magnetic Materials and
Alloys (3) 62,687 54,360 72,626
Rare Metals (4) 21,269 15,944 20,994
Inter-segment
eliminations (17,424 ) (12,066 ) (16,032 )
------------- ------------- -------------------------
Total Net Revenues $ 123,937 $ 116,907 $ 149,066
------------- ------------- -------------------------
Sales volume (in metric
tons)
--------------------------------------- ------------- -------------------------
Resources 1,085 974 1,080
Chemicals and Oxides 1,651 1,582 1,696
Magnetic Materials and
Alloys ((a)) 1,551 1,383 1,783
Rare Metals 104 79 102
Inter-segment
eliminations (1,035 ) (1,022 ) (1,041 )
(a) Includes magnetic
powders and rare earth
alloys.
--------------------------------------- ------------- -------------------------
ASP per kilogram
--------------------------------------- ------------- -------------------------
Resources $ 12.84 $ 10.30 $ 12.51
Chemicals and Oxides $ 26.33 $ 30.74 $ 34.18
Magnetic Materials and
Alloys $ 40.42 $ 39.31 $ 40.73
Rare Metals $ 204.51 $ 201.81 $ 205.82
1. The Resources segment includes operations at our 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® 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
Sillamäe, 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
Second
Third Quarter Quarter Third Quarter
2014 2014 2013
--------------- --------------- --------------
Net loss attributable to
Molycorp stockholders $ (105,179 ) $ (83,899 ) $ (69,929 )
Certain non-cash and other
items:
Stock-based compensation 1,496 1,466 1,687
Inventory write-downs
(Mountain Pass) 13,396 16,593 20,264
Impact of purchase accounting
on cost of inventory sold 23 142 2,151
Impairment of discontinued
assets - - 3,454
Out-of-ordinary items:
Water removal 845 1,239 5,146
Income tax effect of above
adjustments (19 ) (49 ) (5,850 )
--------------- --------------- --------------
Adjusted net loss (89,438 ) (64,508 ) (43,077 )
Dividends on Convertible
Preferred Stock - - (2,846 )
--------------- --------------- --------------
Adjusted net loss attributed to
common stockholders $ (89,438 ) $ (64,508 ) $ (45,923 )
--------------- --------------- --------------
Weighted average common shares
outstanding 224,270,303 224,223,506 168,114,266
--------------- --------------- --------------
Adjusted net loss per share $ (0.40 ) $ (0.29 ) $ (0.27 )
--------------- --------------- --------------
OIBDA and Adjusted OIBDA
Third Second Third
Quarter Quarter Quarter
Consolidated 2014 2014 2013
---------------------------------------------------- ------------- ------------
Operating loss $ (49,431 ) $ (48,735 ) $ (59,001 )
Depreciation and amortization included
in costs of sales 19,382 20,079 16,400
Depreciation, amortization and
accretion 8,093 7,257 10,072
------------- ------------- ------------
OIBDA (21,956 ) (21,399 ) (32,529 )
------------- ------------- ------------
Adjusted OIBDA by Segment
----------------------------------------
Resources
OIBDA $ (31,087 ) $ (30,298 ) $ (44,673 )
Stock-based compensation 231 182 139
Inventory write-downs 13,396 16,593 20,264
Water removal 845 1,239 5,146
------------- ------------- ------------
Adjusted OIBDA - Resources $ (16,615 ) $ (12,284 ) $ (19,124 )
------------- ------------- ------------
Chemicals and Oxides
OIBDA $ 4,251 $ 4,836 $ 4,561
Stock-based compensation 207 211 78
Impact of purchase accounting on cost
of inventory sold 23 142 555
------------- ------------- ------------
Adjusted OIBDA - Chemicals and Oxides $ 4,481 $ 5,189 $ 5,194
------------- ------------- ------------
Magnetic Materials and Alloys
OIBDA $ 13,715 $ 11,812 $ 18,520
Stock-based compensation 178 179 82
Impact of purchase accounting on cost
of inventory sold - - (26 )
------------- ------------- ------------
Adjusted OIBDA - Magnetic Materials
and Alloys $ 13,893 $ 11,991 $ 18,576
------------- ------------- ------------
Rare Metals
OIBDA $ 595 $ 740 $ (911 )
Stock-based compensation 20 39 12
Impact of purchase accounting on cost
of inventory sold - - 1,621
------------- ------------- ------------
Adjusted OIBDA - Rare Metals 615 779 722
------------- ------------- ------------
Corporate and other (8,151 ) (8,171 ) (5,918 )
Eliminations (419 ) 537 723
------------- ------------- ------------
Adjusted OIBDA - Consolidated $ (6,196 ) $ (1,959 ) $ 173
------------- ------------- ------------
______________________________
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, mids and
heavies), the transition metal yttrium, and five rare metals (gallium, indium,
rhenium, tantalum and niobium). 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. The Company also
markets and sells a line of rare earth-based water treatment products. 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
need to secure additional capital to implement Molycorp's business plans, and
Molycorp's ability to successfully secure any such capital, including the
ability to successfully complete the Financings; 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.
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Source: Molycorp, Inc. via GlobeNewswire
[HUG#1869080]
Unternehmensinformation / Kurzprofil:
Datum: 05.11.2014 - 22:02 Uhr
Sprache: Deutsch
News-ID 350159
Anzahl Zeichen: 47431
contact information:
Town:
Greenwood Village
Kategorie:
Business News
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Die Pressemitteilung mit dem Titel:
"Molycorp (NYSE: MCP) Reports Third Quarter 2014 Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Molycorp, Inc. (Nachricht senden)
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