Continuing a theme here of late, Australia's Lynas (OTCQX:LYSDY)
is yet another mining company that has been laid low by significant
price declines in their core addressed markets. As falling copper, iron, and uranium prices have brought the long-term value of First Quantum (OTCPK:FQVLF), Fortescue (OTCQX:FSUGY), and Paladin Energy (OTCPK:PALAY)
into question, the dramatic fall in rare earth oxide prices has
likewise crushed Lynas and brought the very viability of the model into
question.
A huge (and likely unnecessary) supply squeeze a couple
of years ago sent REO prices rocketing, and while investors responded by
throwing money at REO mining companies, customers responded equally
predictably by increasing recycling and finding alternative materials.
Matters are not helped by the fact that the REO market is the murkiest,
least transparent segment of metal mining, nor by Lynas's various
glitches with production. The significant spread in bear/bull outlooks
for Lynas tells me that there could be huge upside to these shares if
prices firm and management stays on course, but it also tells me that
there's a real risk that Lynas fades away and ultimately sees its assets
bought for pennies on the dollar.
Read the full article at Seeking Alpha:
Weak Prices Have Lynas Fighting An Undertow
Showing posts with label Molycorp. Show all posts
Showing posts with label Molycorp. Show all posts
Tuesday, December 17, 2013
Thursday, December 13, 2012
Investopedia: Molycorp Facing Even More Uncertainty, And At The Wrong Time
Wall Street hates uncertainty, but rare earth miner Molycorp (NYSE:MCP)
is providing exactly that right now, and along multiple lines. There
were already sufficient worries in the market about the future of rare
earth oxide (REO) prices and whether years of elevated prices had
permanently destroyed demand, and the announcement of an investigation
by the Securities And Exchange Commission (SEC) didn't help. Now the company has to deal with the unexpected resignation of its CEO at a time when it also likely needs to arrange additional financing.
Please click below for more:
http://www.investopedia.com/
Please click below for more:
http://www.investopedia.com/
Wednesday, June 27, 2012
Investopedia: It's Volatile, But Materion Is Worth A Look
Specialty metals and materials don't often end up looking so special, as they are often just as cyclical as other industrial metals like copper or zinc. That said, Materion (NYSE:MTRN)
has consistently looked to find new value-added uses for beryllium and
related alloys, ceramics and specialty products. Admittedly, the
company's long-term cash flow production and returns on capital
are not stellar, but recoveries in consumer electronics and telecom
equipment could push this company into another cyclical upswing.
Please read the full article here:
http://stocks.investopedia.
Please read the full article here:
http://stocks.investopedia.
Tuesday, February 28, 2012
Investopedia: Molycorp Setting Up A Second Chance
Almost every stock will give the patient investor a second chance, and now may be that time for investors looking to get exposure to the rare earth metal space. Severe Chinese export controls have led to demand destruction (mostly through accelerated substitution and recycling) and prices have plunged. While a tough pricing environment does no favors to Molycorp (NYSE:MCP), the quality of this American miner merits a second look at today's prices.
Few Surprises to Close the Year
For all of the rare earth metal pricing drama, Molycorp's fourth quarter went more or less as expected. Revenue dropped 4% sequentially as strong volume growth (237% in cerium products) was offset by a nearly 50% quarter-to-quarter price cut.
Read the complete article here:
http://stocks.investopedia.
Few Surprises to Close the Year
For all of the rare earth metal pricing drama, Molycorp's fourth quarter went more or less as expected. Revenue dropped 4% sequentially as strong volume growth (237% in cerium products) was offset by a nearly 50% quarter-to-quarter price cut.
Read the complete article here:
http://stocks.investopedia.
Friday, May 13, 2011
Investopedia: Do Molycorp's Earnings Even Matter Right Now?
For the many years that I've been following and writing on stocks, I still manage to be surprised at how investors will react to certain bits of news. American rare earth producer Molycorp (NYSE:MCP) is just one example - talk after the company's earnings announcement was about how the company had missed estimates and how that was pressuring the stock.
Really?
At this point, revenue and earnings are all but irrelevant to the Molycorp story. That leads me to believe that events like earnings releases are more of an excuse and a liquidity opportunity for investors, and that ex-post facto explanations like missed estimates are missing the mark.
The Results
Molycorp announced that it sold 696 metric tons of rare earth oxides in the first quarter - 65% more than in the year-ago period and 9% more than in the fourth quarter. Realized prices were more than five times higher than in the year-ago period, and increased almost 11% on a sequential basis. With that, revenue soared relative to the year-ago period and rose more than 20% from the fourth quarter.
To read the full piece, please click the link below:
http://stocks.investopedia.
Really?
At this point, revenue and earnings are all but irrelevant to the Molycorp story. That leads me to believe that events like earnings releases are more of an excuse and a liquidity opportunity for investors, and that ex-post facto explanations like missed estimates are missing the mark.
The Results
Molycorp announced that it sold 696 metric tons of rare earth oxides in the first quarter - 65% more than in the year-ago period and 9% more than in the fourth quarter. Realized prices were more than five times higher than in the year-ago period, and increased almost 11% on a sequential basis. With that, revenue soared relative to the year-ago period and rose more than 20% from the fourth quarter.
To read the full piece, please click the link below:
http://stocks.investopedia.
Monday, March 7, 2011
Seeking Alpha: China's Rare Earth Policy Will Ultimately Fail (And What That Means For Metal Miners)
Let's not mince words – China's policy of choking off the world's access to rare earth metals will ultimately fail.
Although China has clearly created a tizzy in the markets because of its policy to slowly strangle its export quotas of rare earth metals, it would be more surprising if this move does not go down in the books alongside the Hunt brothers' attempt to corner the silver market and other market-cornering maneuvers. Maybe this is really not all that unexpected; after all, China is not necessarily up to date on all of the details about how free markets operate.
The Problem
As has been reported many times in many places, China happens to sit on top of a very large percentage of the world's rare earth elements. Actually, that's not really the story. China reportedly holds about 37% of the world's reserves but is responsible for about 97% of the world's supply because the central government kept supporting rare earth producers at a time when Western mining companies shut down their rare earth operations because of low prices.
Please click this link for the full piece:
http://seekingalpha.com/article/256890-china-s-rare-earth-policy-will-ultimately-fail-and-that-means-for-metal-miners?source=mc_all
Although China has clearly created a tizzy in the markets because of its policy to slowly strangle its export quotas of rare earth metals, it would be more surprising if this move does not go down in the books alongside the Hunt brothers' attempt to corner the silver market and other market-cornering maneuvers. Maybe this is really not all that unexpected; after all, China is not necessarily up to date on all of the details about how free markets operate.
The Problem
As has been reported many times in many places, China happens to sit on top of a very large percentage of the world's rare earth elements. Actually, that's not really the story. China reportedly holds about 37% of the world's reserves but is responsible for about 97% of the world's supply because the central government kept supporting rare earth producers at a time when Western mining companies shut down their rare earth operations because of low prices.
Please click this link for the full piece:
http://seekingalpha.com/article/256890-china-s-rare-earth-policy-will-ultimately-fail-and-that-means-for-metal-miners?source=mc_all
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