MCP - Molycorp, Inc.

if you trade canadian listed... check out AVL.to Haas been on a tear as well. I played it long but I only held from 2.20~ to 3$. They are years away from any possible production.. will be a good short if things cool off in rare earth world

i'm playing AVL as well, got in at 2.80.

I actually like Rare Element ltd (canadian sym: RES, american sym: REE). Theses guys have been on a surge lately.

how's this candle looking for ya?

Dec 25 puts looking cheap

Thats one bloody ugly candle

Dec 25 puts?

UPDATE 1-Rare earth producer Molycorp wins OK for mine

Mon Dec 13, 2010 11:04am EST

* Final permits secured

* Shares up 7.4 pct

NEW YORK Dec 13 (Reuters) - Rare earth metals producer Molycorp Inc (MCP.N) said it has secured the remaining permits necessary to start building a mining and manufacturing center in California, enabling the company to begin mining ore next year.

Molycorp will break ground on the $531 million facility in Mountain Pass, California, on Jan. 2. The facility is scheduled to reach full capacity by the end of 2012, the company said.

Molycorp, the only rare earth oxide producer in the Western Hemisphere, has begun pre-stripping operations after winning state approval for altering a streambed, the last of several environmental permits needed.

Molycorp shares were up 7.4 percent to $33.62 in morning trading on the New York Stock Exchange.

Last week, Japanese trading house Sumitomo Corp (8053.T) agreed to invest $130 million in Molycorp in exchange for a guaranteed seven-year supply of the minerals, which are used in products ranging from wind turbines to MP3 players. [ID:nN10286929]

Greenwood, Colorado-based Molycorp has become a darling of Wall Street since China cut its export quotas on the elements -- also used in computer hard drives -- by more than half, sending prices of the minerals soaring. Molycorp shares are up about 140 percent from their $14 initial public offering price in July.

Molycorp last month reported a quarterly loss as it modernizes its mine, and said it would not issue sales or earnings targets because of volatile rare earth prices. Its CEO said global supply and demand would remain out of balance for the foreseeable future. [ID:nN15274207] (Reporting by Nick Zieminski; editing by John Wallace)

I like molycorp also check out Lynas Corp as another way to play the rare earths LYSCF(a pure play outside of China)....

This is still looking good. China has cut its rare earth metals export quotas for 2011 by 11%

Heavy short an hour ago

That's one ugly candle on the chart. A $9 dollar difference between high and low. This comes as CNBC reports that MCP mine is not producing yet as rumors earlier circulated that it was beginning production

Leebert,
I've sat here for the last two days with my jaw hanging down near my ankles watching the rocket shot on MCP and REE. I couldn't understand why these stocks were going up so much, I mean with these share prices you would think that these guys were going to ship product before the end of this year.Below is a link to an interview with DR. Bill Bird, former CEO of REE and current CEO of MDL ( I own a bunch of shares of MDL) In the interview he states that MCP is two years away from production. Here is the excerpt:

"BB: Both are very good properties, which I believe are closest to production outside of China. Mountain Pass had supplied the world with REEs for about 50 years. It is a very large deposit and has a lot of proven ore. This material’s ready to mine, the engineers have mapped it out and the mine is ready to go.

However, the company has some start-up issues. The mine closed down in the early 2000s because it couldn’t compete with the low prices in China. It has to restart now and that takes some time. Molycorp likely must reapply for operation permits from the state of California and the federal government, as well as some local permits where it operates. The company also decided to build an entirely new mill that will likely be a cleaner operation, more environmentally friendly and easier to permit. I attended a conference a few weeks ago where one of the company’s representatives said it would be two years before it goes into production (fall 2012)."


The full interview can be found here:
http://oakshirefinancial.com/2010/12...pply-hysteria/

Really taking off today here on the report that China is going to limit is export of REE's.

Very well stated facts, we need to be careful about traders playing this rare earth game from Hong Kong with information on China policy. Any news of export easing will crushed REE and MCP. Our market is open. Play these counter based on technical and take profit. Fundamental not applicable until prices from China make sense for MCP and REE production.

Methinks that buyers will head to the door as this momentum play starts to peter out this afternoon. I'm thinking it closes <3%.

Looking for a convincing break of 49 support on the (48.75 or so) before going short/puts for the EOD selloff.

Called that wrong, stayed strong into close. Looks like support building at 49.


Not ready to really call anything on it though, its been such a see-saw, better to see where its going at the beginning of the day and get on that train.

There is a gap to fill back in the 45 area though....might look to go long down there.