Molycorp (MCP) Posts Q2 Loss of 29c/Share

Molycorp (NYSE: MCP) reported Q2 EPS of ($0.29), $0.01 worse than the analyst estimate of ($0.28). Revenue for the quarter came in at $116.91 million versus the consensus estimate of $130.97 million.

Molycorp's Resources segment, comprised of its Mountain Pass, California rare earth mine and processing facility, sold 974 mt of rare earth oxide ("REO") equivalent products for $10.0 million in revenues. ASP for the quarter was $10.30/kg. Production volume for the quarter was 1,639 mt, a 48% increase over first quarter production of 1,111 mt. Cash cost for production dropped to $16.54/kg, a 39% decrease over production cash costs of $27/kg in the previous quarter.

The Company's Chemicals and Oxides segment sold 1,582 mt and reported $48.6 million in revenues. The slight decrease in volume was offset by higher ASP due to a favorable increase of Nd and Pr in the product mix.

Its Magnetic Materials and Alloys segment sold 1,383 mt of magnetic powders. Revenues for the segment were $54.4 million on ASP of $39.31/kg.

Finally, Molycorp's Rare Metals segment reported sales volume of 79 mt on revenues of $15.9 million. ASP for the segment was $201.81/kg.

Molycorp also announced that it has entered into a commitment letter to secure a $400 million financing arrangement with funds managed by Oaktree Capital Management, L.P. ("Oaktree"). Under the arrangement, Oaktree will provide Molycorp and certain of the Company's subsidiaries up to $400 million in secured financing through credit facilities and the sale and leaseback of certain equipment at the Company's Mountain Pass facility (the "Financings"). $250 million of the Financings will be available to be borrowed at the closing of the Financings, with the remaining $150 million available until April 30, 2016 if Molycorp satisfies certain financial and operational conditions.

For earnings history and earnings-related data on Molycorp (MCP) click here.

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