Dallas, Texas 03/31/2014 (FINANCIALSTRENDS) – Molycorp Inc (NYSE:MCP) reported its full year and 4Q operational results on 4th markets opened for trading. Molycorp Inc (NYSE:MCP) President, Chief Executive Officer and Director Geoffrey R. Bedford sounded buoyant, while attempting to explain the dip in revenue. He has been quoted to have said that, “As we have seen over the past several quarters, demand appears to be returning to more normalized levels, albeit at a subdued pace, as customers have been reducing inventories and adjusting their purchasing plans accordingly. We were encouraged to see our chemicals and oxide segment increase its shipments slightly in the fourth quarter. This was particularly encouraging given that Q4 volumes in our industry are typically lighter than Q3 volumes”.
The firm disclosed on the earnings call that it had spent nearly $1.25 billion to modernize and expand its mine property in California and had developed it into one of the biggest producer of rare earth metals in the globe, other than China. Due to the economies of scale, it hopes to extract the metal at $6 to $7 per Kg once it attains full production.
From its continued operations in the fourth quarter, it reported net loss of $193.3 million, which translates to $0.95 loss per share, as against the higher $359 million, $2.91 loss per share it had reported in 4Q12. The losses were inflated in FY12, due to the onetime impairment charge it had been saddled with, thanks to a takeover in 2012. Net loss per share after accounting for one time losses came in at $0.28 per share, which was well below the $0.48 it had accumulated in 4Q12. The losses per share came down to $0.28 per share, when the onetime expenses had been accounted for, as against the loss of $0.45 per share it had reported in 4Q12. Revenue for the quarter was down 8 percent to bottom out at $123.8 million.