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Molycorp, Inc. Message Board

  • jmilestrader jmilestrader Sep 30, 2011 3:22 PM Flag

    Shuttered Before It Opens Its Doors?

    2002 Mt Pass was Shuttered due to low REE prices.

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    • they also had environmental concerns ...

      as i have mentioned before ... China could easily dump
      on the market and kill prices ..
      especially in light of recent announcements that some major
      users have found other materials ...

    • 2.22 x 50 = 111/share.
      You also forgot to mention economies of scale, the profits they make from their other businesses, etc.

    • The message from CEO Mark Smith as you open their website says "Plans are in place to bring the faciiity into full production, following an extensive modernization project. With appropiate federal assistance for research, development and capital costs Molycorp Minerals is prepared to establish domestic manufacturing capacity on an expedited basis".

      Questions:
      1. Just how far are they along in the planning process?

      2. Is the mine at Mountain Pass open, if not when is the targeted date (or at least a wish date) to open said facility?

      3.How much assistance are they forecasting will be necessary for the federal government to provide, grants, loans (guaranteed or not)interest rate on loans etc how much will they finance and the what will be the sources of those funds?

      4. Where are they in the regulatory process?


      Is it reasonable to conclude, this company is selling us an opportunity, nothing more at this point, if they are fact selling off old inventory as has been indicated by other posts? When that inventory is gone, what is in the pipeline to replace it and where will this replacement product come from? Is this a going concern company? Are we looking at a company that may very well be in liquidation? What have their external auditors concluded in their last audit?

      Those of you who love to take high risks, I think this is the place to be. I wouldn't bet the farm on this company however.

      • 2 Replies to daveedandlaura
      • Read the posts of all Rare earth element companies. You can see the government is helping to fund them, the government is going to stock pile, many positive things will happen in the next 4 years. For MCP you only have to go back and read headlines from September 11, 2010. Most other companies have also started headlines around that time.

      • 1 . They are on schedule.
        2. They will be mining the REE in July of 2012 with a production of over 19,000 tonnes annually.
        3. MCP is fully funded. I bet MCP would take a grant or loan if the interest was low enough. MCP could put their money to use in other ways. If prices got low enough they could even buy other REE companies if they thought they could make enough money from the deal.

    • The US is not helping MCP (yet), as there is private money available (and MCP is already profitable). But US won't let China shutter this mine, even if China tries to flood world with REEs (however, increased demand and new environmental policies in China will make it impossible to flood world with extremely cheap REEs ever again). The world looked away for decades; but now it won't look away for a moment; governments will subsidize mines for periods, if necessary.

    • RE prices were very low in 2002. They are nearly 100 x those prices now. One reason prices are high today is that there are many more uses for RE today than a decade ago.

 
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