I certainly agree that Molycorp has a difficult task to achieve the Oaktree requirements of $20M/quarter EBITDA and 4Ktons production out of Mountain Pass. IMO they cannot achieve the EBITDA target without getting Mountain Pass to the production target. This is because Mountain Pass is largely a fixed cost operation. Molycorp has internal demand for much of the production which will eliminate some costs for purchased RE. This will be helpful. I agree that Cerium sales will be very important. Use in catalytic convertors, Xsorbx and in competitivly priced permanent magnets had better happen. Success is not a sure thing.
I don't see any surprises. They had better produce 4,000 metric tons for two consecutive quarters and $20 million EBTIDA also. It is possible as much of their loss has been depreciation which is not cash..
The stock does not reward long term holders. The management compensation plans reward executives handsomely.
It could be that Oaktree will get Warrants at a price that is determined by the recent prices. They might be getting some help to get the price down. I would hope that this is not what is happening, but greed is commonly found.
The metal is used as a core for the carbon electrodes of arc lamps, for incandescent mantles for gas lighting. Cerium is used in aluminium and iron alloys, in stainless steel as a precipitation hardening agent, to make permanent magnets. Cerium oxide is part of the catalyst of catalytic converters used to clean up exhaust vehicles, it also catalyzes the reduction of nitrogen oxides (NOx) to nitrogen gas. All new cars are now equipped with catalytic conveter which consist in a ceramic or metal substrate, a coating of aluminium and cerium oxides and a layer of finely dispersed metal such as platinum or rhodium, which is the active surface.
Cerium sulphide (Ce2S3) is likely to replace cadmium in red pigments for containers, toys, household wares and crates, since cadmium is now considered environmentally undesiderable.
Other uses of cerium are in flat-screen televisions, low-energy light bulbs and magnetic-optic compact discs, in chromium plating. The use of cerium is still growing, due to the fact that it is suited to produce catalysers and to polish glass.
Cerium is the most abundant of the rare earth elements. It makes up about 0.0046 % of the Earth's crust by weight. Cerium comes mainly from the major lanthanide ores but some is obtained from perovskite, a titanium mineral and allanite, both of which can have enough cerium to make them viable sources. Production amounts to 23.000 tonnes a year, but this amount is likely to increase since more and more cerium is used nowadays.
The paper apparently was published in Feb. 2009. It should be well understood by people in the business. That would not include me. I'm still wondering about the ideas. The use of Aluminum is interesting. Aluminum is quite malleable and might be more compressible than most metals.
Quenching usually means rapid cooling of a hot alloy which locks in a crystalline structure not seen after slow cooling. A use of the term to mean a rapid release of pressure retaining the higher density and structure created at high pressure seems novel. Cerium has some magnetic properties but less than those of other RE. It might be that magnets can be made economically with Cerium given its cost being a small fraction of the higher value RE's.
Fluoride is any compound of Fluorine where Fluorine acts as an oxidizing agent. A common one is Stannous Fluoride which is commonly in tooth paste to prevent cavities and is used as a mouth disinfectant.. Another use is in U235 enrichment where Uranium hexafluoride gas is subjected to mass separation based upon the small mass difference between U235 and the far more abundant U238. No enrichment is required for the Canadian CanDU reactors. Some is required for use in light water moderated reactors, and highly enriched uranium is required for use as a weapon. Hydrofluoric acid ( HF) is very corrosive and can be used to etch glass.
I would expect that all fluorides are at least mildly toxic
I saw the commercial on Sunday night Football. I also am being fed Cree ads on UTube, but this might be a custom feed if they track me on this message board.
Near CA but with lower labor, living, taxes, etc. Also with an interesting minor advantage IMO. An alternative power company called Ormat has geothermal generation near Reno and elsewhere in NV. Geothermal wells contain Lithium in some abundance. FWIW.
The most important development will be fuel cell technology. I believe that Toyota will actively promote this. A large fuel cell will replace the internal combustion engine. Hydrogen will fuel it and the output will be electric power which will directly drive a large electric motor. Excess electric power and dynamic braking power will charge a battery with capacity somewhat larger than that in a Prius but much smaller than that in a Tesla. This approach will require more RE for the motor than currently used in the Prius. Production of hydrogen can be done with wind and solar power when in excess of immediate power demand. Wind generators use RE.
Toyota uses NiMh batteries. Nickel Metal Hydride. They may contain some Lanthanum, but are not largely Lanthanum