Ucore Rare Metals Inc. V.UCU

Mapping the Road Not Taken

[Frelodr]

Not sure if this has been posted yet.

Rare Earths The GAO Report – Mapping the Road Not Taken

https://www.metalsnews.com/Metals+News/MetalsNews/Christopher+Ecclestone+-+Hallgarten++Company+Metals+Review/EXPERT156128/Rare+Earths+The+GAO+Report++Mapping+the+Road+Not+Taken.htm


Just a little pulled from the article:

According to Bloomberg, Mark Smith, Molycorp’s chief executive officer said: “From a Goldman standpoint, it was a small investment and one of the issues that they had and I think the primary reason for their sale was that they were not in a majority position.”

Oh yeah? With a possible billion dollar market cap in the offing since when has Goldman not been content to be a minority in a PE investment? Interestingly Smith declined to say how much of the company Goldman had owned or provide a sale price. Inscrutably, Ed Canaday, a spokesman for Goldman Sachs, confirmed the sale of the stake and declined to comment further.

Despite denying an interest in an IPO it issued us and other analysts a visit to the mine early in 2010 and held a presentation at Bloomberg’s head office in NY for all interested parties. Now we have the IPO revealed. If the company comes to the market with a valuation of $1 billion than the partners have turned $80 mn into $650 mn. Is this the type of gain that Goldman leaves on the table “because it is so small”?


Also there is talk in this article about the Great Western acquisition that failed. I know there is a lot of talk on this board about Molycorp JVing with Ucore, but this article makes a person wonder if they will go back after Great Western again.

Would also appreciate any thoughts from fellow Ucore Longs on this article

Thanks,
Lodr