Molycorp Will Rise Yesterday's news release wasn't as bad as the market's over reaction.
As reported by Reuter's yesterday by Julie Gordon:
The market reaction may be a bit overblown, said Byron Capital Markets analyst Jon Hykawy, noting the company had previously announced engineering issues at Mountain Pass.
"The ramp being delayed to this point is not particularly shocking," he said. "Most of the stuff there is in place. The one thing that was slow was the solvent extraction area, and that was down to the engineering issues they had."
It basically showed Molycorp's Phase 1 is fully operational and ramping up in an orderly fashion.
Also by down playing revenue there is a good chance of surprising the analysts on the up side.
We're in good hands and Molycorp will rise again as it ramps up to it's target and beyond.
As reported in Reuters yesterday by Julie Gordon:
"My conclusion was if we were going to be successful ramping up Mountain Pass to full commercial production, we needed to do it in a rational way," said Karayannopoulos.
With all key production components at the new manufacturing complex now running, the company will increase throughput in small increments to allow for troubleshooting as it moves toward its full Phase 1 run rate.
"We want to hit the run rate by mid-year," said Karayannopoulos. "Can we do it sooner? I would hope so and frankly I think we should, but I'm not going to make any promises."
Remember Molycorp just prior soaring on the news of the possibility of a takeover and now falling
on news interpreted to be bad in the short term but good looking forward as we are now under better
management for the production cycle and the needs of the industries relying on rare earth.
As announced in North American Wind Power:
“The Critical Materials Institute will bring together the best and brightest research minds from universities, national laboratories and the private sector to find innovative technology solutions that will help us avoid a supply shortage that would threaten our clean energy industry as well as our security interests,” he adds.
...
Industry partners that have joined to help advance CMI-developed technologies include General Electric, OLI Systems Inc., SpinTek Filtration Inc., Advanced Recovery, Cytec Inc., Molycorp Inc. and Simbol Materials.