Molycorp Inc MCPIQ

RE: RE: MCP 30 USD mid of 2013

[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 $, total sales for 2012 should be some 8000mt at an average price of 70$ makes 560mil $ plus the sales from NEM. In conclusion the sp of MCP is not going to be affected much by debt or dilutin but by REO prices and 1 year can be a long time and make a lot of difference, the market is tight and I am very confident that in due time $10 x shares will be history. Also looking at the difficulty that LYC and MCP have gone trough in developing their projects is not going to be easy for other explorers/producers to replicate their efforth, I can see the supply side of REO to remain tight for the future, in a sector that is ever expanding, and then we surerly are going to get some help from China.