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Molycorp, Inc Common Stock Message Board

  • votingmachine votingmachine Aug 6, 2014 5:09 PM Flag

    Volume Disappointing

    The Q2 report has the production at Mt Pass as 1639 mt. Considering that they announced April as 520 mt, that is not any great improvement,Yes it is higher than Q1, but it also is not as fast as I hoped for. They might have produced:
    April: 520 mt
    May: 545 mt
    June: 575 mt

    At Q1 they said they were still targeting full operations by December, although that was a difficult target. With under 600 mt produced in June, it sounds impossible. We know that the ramp is not a smooth increase, but a step function, and there may be a sudden increase, but it is a disappointing volume produced in Q2.

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    • I believe the price increase and volume is muted in the after hours because we still need to hear what management has to say on the conference call tomorrow. There is a lot to talk about. Guidance, if any, will be very important. I think the minor production increase is not necessarily a concern. You keep talking about a step function. The analogy at the last conference call was a kink in the garden hose, which does not imply a step approach. Rather, it implies stagnant growth and then a sharp surge when the kink is removed. Costs have come down with little increase in production, which is good. Sales was disappointing, however, and that needs some explaining. I think a strong showing by management leads to a sharply higher trade tomorrow. Regardless, I think a short-term bottom is in place. With imminent bankruptcy no longer a concern, it is becoming more dangerous to be short at this price.

      • 4 Replies to pbtoption
      • Oh, my POOR sweet rare earth DUPES.....a pathetic 22 PENNIES "short squeeze," following an 80 DOLLAR drop in the WORTHLESS MCP stock, is beyond laughable!!!!


        Please enjoy your very brief PUNY DEADCAT BOUNCE, that will be ERASED in a heartbeat, and use the DEADCAT BOUNCE to increase IN THE MONEY PUTS to the max, for the ride toward ZERO by year's end!!!!

      • That is what a step function IS. It refers to a non-linear increase, as in a stair-step, where the path takes a sudden vertical increase. A step-function has a precise definition:
        Step Function: A function that has a graph resembling a staircase.

        It is an example of a discontinuous function. As you point out, the rate of production is not a continuous one, but might have dramatic discontinuities.

      • They should not produce much in excess of demand. Otherwise, they are converting their cash which can be used for any purpose into REO which would be held in inventory.

        Lynas made the brilliant decision to invest in mining ore in quantity enough for years of demand thereby weakening their balance sheet for no good reason.

      • yes, let's listen to the management incompetents and WRONG WAY PUMP they deliver another LOSSES....FAILED EXPECTATIONS....MISSED PROJECTIONS...and...LAME EXUSES conference.


        See at 10 PENNIES a share before year's end!!!

    • Exactly. i am happy with the financing but this lack of production is still very concerning and can't keep going at these levels. I am still classifying this as a pos for now but not as bad as it was an hour ago.

    • Not really. Why produce when illegal mines in China are dumping? The Chinese producers have been losing a fortune and the govt has been subsidizing. Things will snap back very quickly!

      Also, the whole approach is to tailor production at the mine and in processing to tailor-make feedstocks for downstream. These guys each have decades of experience. I trust them.

    • THat is a genuine concern of mine, and this has been going on far too long. I hope they can truly ramp up, and not give excuse after excuse after excuse. It gets old.

0.360.00(0.00%)Aug 6 3:56 PMEDT