Dallas, Texas 01/06/2014 (FINANCIALSTRENDS) – Molycorp Inc (NYSE:MCP) is one of the few mining companies engaged in rare earth materials. Besides, the U.S. based company operates in the industrial metals and mineral segments, besides its four segments, chemicals and oxides, magnetic materials as well as alloys besides Rare Metals and Resources. It Project Phoenix, off the Californian region, the stability of the region is an in-built advantage it has over other mining companies which are located off-shore in countries, where geo-political situation are not always stable and inductive for growth.
There is much upside for the rare earth mining industries, given the apparent rerun of the semi-conductor and high-end electronic industry revivals. Nearly, every electronic component that gadgets carry in the post-modern science era contains an element of ‘rare earth’ material. Be it Apple Inc’ ambitious sapphire-based, authentication hardware-software combine or the next generation of integrated circuits, rare earth material use is expected to increase in other applied fields as well- pure sciences, aircraft, space craft and others. Therefore, every small component manufacturer across the globe is now seeking rare earth materials and as the resources of companies such as Molycorp Inc (NYSE:MCP) increases, the market role they will play in these industries is expected to grow as well.
Molycorp Inc (NYSE:MCP) is expected to see the turnaround happen in the next year and a half as the semi-conductor and related industries begin to go into full production or at least finalize on products to be manufactured in the next year.
Besides, Molycorp Inc (NYSE:MCP) high-value assets appear to be attracting other interests as well. Nissan, Siemens some of the world’s best component and electronic component manufacturers could well seek a stake in the mining industry to secure their rare earth supplies in the long-term. Molycorp Inc (NYSE:MCP) definitely appears attractive as it has core focus on rare earth materials and would not carry additional portfolio burden, if acquired.
