What do you mean they are hurting the small guy? They are providing an occasion for the small guy to buy lower (belowtrue value according to you), isn't that good?
Personnally I prefer buying steak when it's on sale and the store is desperate to unload, but I might hold off if I think it will be lower next week or the week after.
Gold bugs are out to harm the small buy, scaring them to buy at a high price based on hyperinflation scares, when the world is clearly in a deflationary spiral.
You will get all of it, buy as many shares as you can, it is obviously a no brainer.
You must be a genius for seeing the value while the market still is totally clueless.
Yes, it was not Greece that was bailout in 2010, it was the German and French banks and the threat of an economic collapse. That threat does not exist anymore and the EU does not have an appetite to throw more good money after the bad.
The risk of providing help to the greeks is contagion to Spain and Italy, while letting the Greeks sink sends a clear message to the other club med nations that there are no free lunches.
By the time the banks open, everyones euros might have been switched to the new Drachma in which case there will be no worry about a run on banks, the governement will print as much as needed.
The Denver Post (Continued):
The target production was 20,000 metric tons a year, but the mine produced 4,769 tons in 2014, according to company filings.
"This is common in the mining industry, delays and problems in execution," analyst Starke said.
And by the time the mine was producing, prices had collapsed.
Molycorp production costs at Mountain Pass were about $20 a kilogram, while the rare earth market basket was selling this year for about $7 a kilogram, Tahuti Global's Moreno said.
Three things had happened to burst the rare earth price bubble, analysts said.
Rare earth users were drawing down their stockpiles rather than buying and in May, China lifted its export restrictions to comply with a ruling from the World Trade Organization.
And faced with the sky-rocketing prices, manufacturers had found substitutes or ways to use fewer rare earths, said Alex King, director of the Critical Materials Institute at the federal Ames Laboratory in Ames, Iowa.
"Cerium is used in polishing glass and silicon wafers," King said. "It used to be used just once, but companies are now collecting it and reusing it. That has cut the demand by 70 percent."
Cerium is one of the prime rare earths coming out of the Mountain Pass mine.
Makers of fluorescent lights and automobiles have also found substitutes for rare earths.
Molycorp's Bedford told analysts this past March that sales of rare earths for lighting, once 40 percent of the industry's revenues, were "in decline."
"So very quickly we went from a shortage of rare earths to an excess of rare earths," King said.
In March 2012, at the height of the market, however, Molycorp bought Canadian rare earth processor Neo Materials Technology Inc. for $1.1 billion in a cash and stock deal.
"It was a top-of-the-market price," said CRT Capital's Starke. "They overpaid." He estimated the Neo Material's current value at about $600 million.
The Denver Post:
The short-term loan will also give the company time to negotiate with the competing creditors for a bigger, long-term loan.
"It is a fight over the good parts of the company," said CRT Capital Group senior analyst Kevin Starke . "It will be a complicated bankruptcy."
How Molycorp landed in this state involves a dispute between Japan and China over islands in the East China Sea, leaking tanks at a mine in California's Mojave Desert and the purchase of a Canadian rare earth processor at perhaps too hefty a price.
And then there is the problem that Molycorp's rare earths were not the rarest and thus not the most valuable.
The price run-up was the result of a couple of factors, analysts say. In 2009, China, which produced 97 percent of the world's rare earths, imposed export restrictions.
Then in 2010, Japanese officials claimed China held up rare earth shipments during a territorial dispute between the two countries over eight islands in the East China Sea.
"That set off a frenzy of stockpiling of rare earths, which drove up the price even more," said Luisa Moreno, a senior analyst with Tahuti Global in Toronto.
The price of praseodymium oxide, an element used in aircraft engines, rose more than tenfold between 2009 and 2011 to $248 a kilogram. Last week, it was selling for about a third of the 2011 high.
It was in this climate that Molycorp launched its 2010 initial public stock offering
"The market was very favorable for financing," Moreno said.
Molycorp was pouring money — including $1 billion in private equity — into upgrading and restarting Mountain Pass, the largest rare earth mine in the U.S.
The project ran into a string of problems from struggling with impurities in one processing plant to leaky tank liners in another.
The liners had to be replaced on nine tanks "due to safety and product quality concerns," Molycorp CEO Geoff Bedford told analysts in March.
''First, why would the IMF independently creating a global reserve currency alternative to the dollar? Second, how could the U.S. possibly allow that to happen? Third, this reeks of a scam targeting doomsayers...''
''This reeks of a scam targeting doomsayers...
It is... if you follow these article submissions and board topics over the years, this is a very clear trope. Probably leads into gold or some other equally mediocre kind of investment.
The reality is that the IMF already has a separate reserve currency (Americans like to think they're the reserve currency for the world, but the reality is that they're only the "reserve" currency for certain types of oil trades) and that reserve currency is called a Special Drawing Right, of which the US dollar is a component, but it constitutes less than half of the basket of currencies.''
The loan is to keep the businesses going while working thru Chap. 11.
The total debt is so high, that the equity is worthless and even the most senior debt is worth perhaps a few dimes on the dollar.
MUMBAI/SINGAPORE (Reuters) - Gold prices in major consumer India were quoted at deep discounts to the global benchmark this week on tepid demand and adequate levels of inventory, dealers said.
Is the Neo business really Worth $650 million?
Do they (can they) generate enough profits & cash flow to justify such a valuation?
Would they not need to generate something like $50 million in cash flow per year to justify that valuation?
"wall_street_oracle • Jul 6, 2014 12:24 PM
You don't get it! CB has told us many times that all of MCP's convertible debt has already been converted to stock. And the stock has already been issued. The only debt remaining is the $65 mln 10$ senior.
Sure MCP still shows interest payments. But that is only pro forma.
CB is the smartest long on this board.''
Oracle, you are the second smartest long on this board.
Longs can sue Molymet.
Will they win? Not very likely.
Where do you come up with such scenarios?
You should know better than listening to anonymous posters on a public board like that shameless lying pumper CB480 who was one who said repeatedly that Molymet who not let MCP go BK.
If Molymet did nothing more it is probably because they were in hot water with their own shareholders for having thrown so much good money at this POS. They have been writing down the value of MCP, which affected negatively their own profits, they have said so much in their annual report.
MCP management is only trying to kick the can down the road one more time, If left to do so, they will only burn more cash.
Bedford said it expects to exit Chapter 11 bankruptcy protection before the end of the year “with an appropriate financing framework to support our business going forward.”
The dude is either nuts, an incompetent idiot or a #$%$.
Oaktree is wise to protect the remaining assets in order to have the best chance of being made whole.
Not to forget the Trillions $$$ of RE in the Mountain Pass Mine.
It is exactly this type of math that lose gullible investors $$$.