Molycorp Inc. (MCP:US), the U.S. owner of the largest-rare-earth deposit outside China, declined the most in almost seven months after reporting a larger second-quarter loss than analysts expected.
Molycorp fell (MCP:US) 13 percent to $6.44 at 9:37 a.m. in New York, the biggest intraday decline since Jan. 10. The shares have dropped 32 percent this year.
The quarterly net loss was $71.2 million, or 44 cents a share, from $67.6 million, or 71 cents, a year earlier, Greenwood Village, Colorado-based Molycorp said in a statement issued after the close of regular trading yesterday. Excluding water removal costs, business expansion and other one-time items, the loss was 36 cents a share, 53 percent more than the average of seven analysts’ estimates compiled by Bloomberg. Sales rose 31 percent to $136.9 million, missing estimates.
Molycorp is increasing production at a new processing facility at its mine in California while it builds a plant that will recycle wastewater and manufacture acid used to refine rare earths. The company has not met its target to produce 19,050 metric tons of rare earths annually at the Mountain Pass mine, originally scheduled for last year.
Molycorp said in a separate filing that it will restate its first-quarter results and is assessing its finance and accounting controls after an error in its filings to the U.S. Securities and Exchange Commission. In July, the SEC said it had ended an investigation into the accuracy of Molycorp’s public disclosures without recommending any enforcement action.
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