Molycorp Continues to Post Losses, Lower Revenues
ThinkstockMolycorp Inc. (NYSE: MCP) reported fourth quarter and full-year 2013 results after markets closed Monday. The rare earths miner posted an adjusted diluted loss of $0.28 per share on revenues of $123.81 million. For the fourth quarter of 2012 the…
Molycorp Inc. (NYSE: MCP) reported fourth quarter and full-year 2013 results after markets closed Monday. The rare earths miner posted an adjusted diluted loss of $0.28 per share on revenues of $123.81 million. For the fourth quarter of 2012 the company posted an earnings per share (EPS) loss of $0.45 on revenues of $134.3 million. Second-quarter results compare to the Thomson Reuters consensus estimates for a net loss of $0.29 a share and $148.22 million in revenues.
For the full year Molycorp posted an EPS loss of $1.09 on revenues of $554.39 compared with an EPS loss of $0.37 on revenues of $527.7 million in 2012. The consensus estimates called for an EPS loss of $1.05 on revenues of $582.66 million.
The 17% drop in quarterly revenues was attributed to a shifting product mix and lower prices for rare earth minerals and lower volumes of the company’s magnetic powders. On a GAAP basis Molycorp’s fourth-quarter loss totaled $0.95 which includes an impairment charge against goodwill, extraordinary business expenses, and certain other non-cash items.
Full-year revenues rose 5%, but the company’s negative cash flow from operations totaled $154.4 million for the year and capital expenses totaled $379.3 million. The company estimates that 2014 capex will total around $80 to $90 million.
The company did not offer guidance in its press release, but the consensus first-quarter estimates call for an EPS loss of $0.13 on revenues of $186.19 million. For the full-year, estimates call for an EPS loss of $0.33 on revenues of $782.97 million. The company’s conference call will be held at 9:00 a.m. ET Tuesday morning.
Shares are up about 1.5% in after-hours trading, at $5.33 in a 52-week range of $4.51 to $8.06. Thomson Reuters had a consensus target price for the shares at around $6.60 before today’s report.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.