Molycorp Inc MCPIQ

MCP 30 USD mid of 2013

[PublicRelations]

... imho the stock is dramatically undervalued. They tolok over NEM for 1,3 billion dollar now they are below that market cap at all. Given they produce some 40.000 tones of REE in 2013 that one will dominate the market as well as this important future investment. All my opinion of course. We will see!

Remember the peak at some 77 USD before wihtout NEM and the development of their flagship project.

[mjh9413]

I cannot see that as this new financing will mean prospective WY sales 2012 after annualising NEM's contribution, will mean that debt is about 1.5 to 1.7 times such a sales number, plus they have this equity dilution. I am not bashing but the numbers just do not support the idea that this company can easily grow out of this predicament of high costs, lower prices, equity dilution and

[luc-uk77]

Equity dilution is some 13mil shares at same current sp, so no dilution there, a dilution would be issuing shares a much lower price....also 10% of share issued is not a big number, MCP still has a very low total number of share issued with some 110mil in circulation. Long term debt was some 200 mil $ at end of 2011, now with new fund rising should go to 500 mil $, total sales for 2012 should be

[mjh9413]

luk-uk you must be dreaming in technicolor as the debt figure and lease obligations last qtr were close to $1billion and that is before the latest debt issue and let's not forget the equity dilution. Did you see the drop in aver prices last qtr and the only increase was in their lowest volume sales (re alloys). I am going from memory on all this but if you strip out the lease obligations debt

[luc-uk77]

mjh9413 I am not sure were do you get your numbers, have a look at the last balance sheet mate. Please do not confuse debt with capital received by issue of shares. Another point is diluition, the very fact that the company prefers to rise money via obbligation rather than issuing of shares is to limit diluition...and again the last 10mil shares issued at $10 is not diluition. I am not of the

[mjh9413]

Just look at their last 10Q Note 14 and then add recent round of debt issuance...mate!

[luc-uk77]

Sorry mate my mistake you're right about debt. Still debt or no debt my point was that MCP sp is more affected by REE prices than company debt. 6% intrest on 1.2 bil £ debt makes 72 mil out of profit, not a huge ammount on a production of 40000 t ree, this if there was demand and prices were high, as thing stand it doesn't look too good for MCP, have become bearish on the sector in