Rare earths miner Molycorp, Inc. (MCP) Thursday reported a sharply wider loss for the first quarter, hurt by write-down charges and other costs, offsetting a nine percent growth in revenues stemming from improved volumes. However, excluding items, loss per share was lower to Wall Street estimates, and revenues topped expectations.
Shares of the company gained about nine percent in after-hours trade on the New York Stock Exchange.
Molycorp said it continues to expect first-half results to be weaker, due to the seasonal weakness in the first quarter, as well as the expectation that its key Mountain Pass rare earth mine in California will not achieve full-scale commercial production until mid-2013.
"Our ongoing production ramp-up at Mountain Pass remains on course, and our increasing production is allowing us to produce for end-use customers as well as provide greater feedstock to our downstream, value-added processing facilities," said CEO Constantine Karayannopoulos.
Rare earths are difficult-to-mine materials used in many personal, commercial, and military electronics. Rare earths have become increasingly in short supply, and China, a leading supplier, has been restricting their production and exports.
Greenwood Village, Colorado-based Molycorp posted quarterly net loss to common stock of $47 million or $0.33 per share, compared with net loss of $3.5 million or $0.07 per share last year.
Results for the quarter included, among other items, inventory write-downs of $37 million.
Excluding items, adjusted loss for the quarter was $23 million or $0.15 per share, compared with an adjusted profit of $15.5 million or $0.18 per share a year ago.
On average, five analysts polled by Thomson Reuters expected a loss of $0.27 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter increased 9 percent to $146 million from $84.5 million a year ago, while analysts had consensus revenue estimate of $137.52 million.
Molycorp sold 3,274 metric tons (mt) of product at an average sales price, or ASP, of $44.71 per kilogram in the quarter. This compares with 958 metric tonnes of sales a year ago.
For the remainder of 2013, the company estimates that its cash capital expenditures will total about $250 million.
About $80 million of additional cash capital expenditures related to its Mountain Pass facility modernization and expansion project are anticipated to be incurred in 2014.
Molycorp's stock closed Thursday at $5.59, down 1.24%, on a volume of 9.6 million shares. In after hours, the stock gained $0.49 or 8.77%.
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