Molycorp, Inc. (NYSE: MCP) reported a narrower loss for the fourth quarter, primarily due to increased sales volume and higher prices. Colorado-based Molycorp is the U.S.’s largest rare earth miner, standing out from its competitors as one of the few non-Chinese companies with active mining operations for rare earths metals.
The company reported net loss for the quarter at $(7.90 million) or $(0.10) per share as compared to $(9.10 million) or $(0.22) per share in the prior year quarter. On an adjusted basis, Molycorp had a profit of 3 cents a share while analysts were expecting a loss of $(0.07). Revenues for the quarter gapped up 885% to $21.7 million from last year driven by increased sales volume and significantly higher pricing. The company sold nearly 638 metric tons of rare earth oxide products in the quarter, a 37% increase from about 467 metric tons sold in the prior year quarter. The average sales price realized in the quarter was approximately $34.02 per kilogram as compared to an average sales price of $4.72 per kilogram for fourth quarter last year.
For the full year, the company reports sales rose to $35.2 million, an increase of 396% as compared with $7.1 million for 2009 with its diversification into sales of REO products with relatively higher prices and higher sales volume. The growth was driven by higher prices for REO products. The company reported actual and adjusted net loss in 2010 of ($49.1 million) and ($17.3 million), or ($0.79) and ($0.28) per share, respectively. This compares with an adjusted net loss of ($28.3 million), or ($0.72) per share, for 2009.
For 2011 the company anticipates that the Chinese government will limit the quantity of rare earth oxides available outside of China. With the reduced export quotas, the company expects restriction on its production and supplies available for export.
Molycorp stock is currently trading at $48.50. The stock is down 1.01 percent from its previous close. Molycorp shares touched the high of $49.20 and lowest price in today�s session is $48.50.
The company stock has traded in the range of $12.10 and $62.80 during the past 52 weeks. The company�s market cap is $3.99 billion.
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