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Molycorp slides on bigger-than-expected Q4 loss

Last updated: 13:40 04 Mar 2014 EST, First published: 22:40 03 Mar 2014 EST

Molycorp Inc. (NYSE:MCP), a rare earth miner, retreated to the lowest in nearly a month after reporting a bigger loss than expected in the fourth quarter.

Molycorp Inc. (NYSE:MCP), a rare earth miner, retreated to the lowest in nearly a month after reporting a bigger loss than expected in the fourth quarter.

The shares slumped 2.9 percent to $5.10 at 2:19 p.m. in New York after touching $5.00, the lowest intraday price since Feb. 7.

Loss stripping out writedowns and other one-time items was 28 cents a share in the three months ended Dec. 31, the Greenwood Village, Colorado–based company said in a statement after market close yesterday.

Analysts, on average, had expected a loss of 27 cents a share.

Net loss narrowed to $194.3 million, or 95 cents a share, from a net loss of $359.6 million, or $2.91 a share, in the year-earlier period, when the company took a $258.3 million impairment charge related to a 2012 takeover.

Revenue was $123.80 million, below the consensus estimate of $148.30 million.

The company sold 3,201 tonnes of product at an average sales price of $38.68 per kg in the fourth quarter, compared with some 3,102 tonnes at an average price of $43.28 per kg in the year-ago period.

Molycorp announced that the Chlor-Alkali plant at its Mountain Pass, California rare earth facility is now operational, which should boost production volumes and lower costs.

"Putting our Chlor-Alkali plant into operation is a major milestone. Producing our own chemical reagents and reducing our water discharge will lower our costs, and this unit further reduces the environmental footprint of rare earth production at Mountain Pass," Chief Executive Officer Geoff Bedford said in the statement. 

"It will play a key role in helping us achieve operating break-even cash flow, before interest, this year," he added.

Molycorp also owns rare earth and rare metal processing facilities in North America, Europe and Asia.

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