Thursday, March 10, 2011

Molycorp (MCP) Shares Up on Earnings Results

Earnings for rare earth miner Molycorp (NYSE:MCP) exceeded expectations, driving the shares of the company up in after hours trading.

Particularly noted was the increase in sales of rare earth oxide, which was up by over 20 percent from the prior quarter.

Molycorp generated earnings of 3 cents a share on revenue of $21.7 million in the quarter, beating estimates of a 7 cent loss on $13.5 million in revenue.

CEO Mark Smith said, “This integrated rare earth supply chain is expected to position Molycorp to operate as one of the world’s lowest-cost producers and to capture new markets created by rising rare earth demand and China’s continuing restriction of rare earth exports.”

Smith also said he doesn't see China changing its decision to lower the exports of rare earth elements any time soon.

Molycorp closed Wednesday at $48.62, losing $1.15, or 2.31 percent. After hours they were trading at $50.35, up $1.73 or 3.56 percent.

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