the language from the earnings release 'Based on our on-going monitoring of the rare earth industry and our business, we expect that our cash flow from operations for the remainder of 2012 will likely be less than we expected. Accordingly, we will need to secure additional financing for a substantial portion of our remaining 2012 capital expenditures and other cash requirements'
the language from the filing
'"Accordingly, we will need to secure additional financing for a substantial portion of our cash requirements for the remainder of 2012 and the first six months of 2013'
in the earning release they said they needed cash for the remainder of 2012.....in the filing its the remainder of 2012 and now also the first 6 months of 2013
i assume this means they will need much more cash than they originally expected
what has changed? have they decided to raise more than the 300m they alluded to on the call? does the first six months of 2013 mean the number could be 600m?
Do not disagree about importance of having a more secure financing in place. Too solve it it may be hard and expensive. IF they can get out 2 K ton in Q3 and be able to say in The Q3 call that the plant is up to a 5 to 7 Kton PA Run Rate then I suspect financing becomes simpler. Other thing that would help is more details on absorb X that is documented by outside sources.
Last thing is I would like to now is what happened at Silmet. Great profits in Q2 last year. Small profit in Q3 and steady increasing losses since then. Understanding what is going on there would help get me to invest in stock and not just Calls.
Investors, based on this information, ask yourself the following question:
HOW MUCH RISK CAPITAL DO I HAVE TO INVEST TODAY, LOSE IT ALL SOMETIME IN THE FUTURE, BUT NOT HAVE TO WORRY THAT A TOTAL LOSS WILL HAVE A MATERIAL IMPACT ON MY FINANCIAL WELL-BEING?
WHATEVER THAT SUM OF MONEY IS THAT IS GREATER THAN ZERO, THAT IS THE AMOUNT I WOULD INVEST IN MOLYCORP NOW!!!
There is the upside that rare earths appear to be a strategic asset for this nation's security. If Molycorp has the only potentially economic feasible US based mine containing rare earths in this country, I would rather expend my risk capital with this stock, than say at your favorite neighborhood casino.