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Can Molycorp Recover Lost Ground?

The following video is part of our "Motley Fool Conversations" series, in which analyst Rex Moore discusses topics around the investing world. Shares of Molycorp have fallen by more than half over the past year. Today, Rex assesses the chances this rare-earth miner can make a major move upward.

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Rex Moore and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (4) | Recommend This Article (8)

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  • Report this Comment On May 15, 2012, at 5:05 PM, gwilk08854 wrote:

    You fail to take into account the new $650M debt they just took on, along with the additional debt that they will incur to capitalize Neo Material operations.

  • Report this Comment On May 15, 2012, at 6:12 PM, Denverdude123 wrote:

    The acquisition of neo will be a major change in the company. Neo management is in favor of the deal because it gives them more access to rare earths. Molycorp is in favor because it gives them a market for rare earths. The combination gives an opportunity to make best use of rare earth pricing for production from China and from Mountain Pass as Neo has good access to Chinese RE at domestic pricing.

    MCP expects Mountain Pass to be the world's lowest cost producer of rare earths. In the past, China sold at low prices because they produced rare earths while despoiling the environment, something that the Chinese Government is determined to stop. Proper mining techniques will raise production costs substantially.

  • Report this Comment On May 15, 2012, at 11:07 PM, artistama wrote:

    Mollycorp came on the scene several years ago. It was understood that developmental time would be 2 to 3 years before significant production could be achieved. Molycorp is on schedule with it's orriginal developmental plans..The market for Rare Earths will continue to grow as tech applications expand.. It has made intelegent aquisitions that add to it's future viability. It is presently the only act that will be viable in the next 2 or 3 years outside of China. I don't understand why investors are so "Bearish" about it.Perhaps if the "Shorts" would leave the stock to grow, it could take on a more positive reflection of it's position in the tech/mining world.

  • Report this Comment On May 17, 2012, at 4:29 PM, Lbalt wrote:

    How does Molycorp compare to Rare Element Resources as an investment?

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