$1.604??? Is that what the divvy is? That's ludicrous, almost half their cash per what I see at Finviz, I guess you have to come close to running out of cash to dilute your shareholders, this goodwill might blind the sheep, and the sooner they can do another offering the better since there is always downside risk to share price. I'm guessing price will drop nicely after the 15th when you get locked in for the payola?
$1.604??? Is that what the divvy is? That's ludicrous, almost half their cash per what I see at Finviz, I guess you have to come close to running out of cash to dilute your shareholders, this goodwill might blind the sheep, and the sooner they can do another offering the better since there is always downside risk to share price. I'm guessing price will drop nicely after the 15th when you get locked in for the payola?
Just on the preferred shares , there are only just over 2 million of those. I suspect the ones who hold those are , namely banksters . I believe JPM and Morgan Stanley were the ones who lead the IPO
Anyone read this as well?
http://www.benzinga.com/news/earnings/11/05/1072878/molycorp-earnings-preview-mcp
The stock is also being pressured by the end of a lock-up period on 39 million MCP shares, which will occur tomorrow.
(which is today...)
Watch out below? 
huge market cap
Would also like to see a list of metal producers and their P/E ratios to see where MCP would rate. Would have to be close to deadlast. They have had 9 months with record rare earth's prices, some of them up over 1000%, AND they have yet to figure out to process them and turn a profit. As i explained in previous posts, while there is huge prices for refined products , there is not the big prices for the concentrates, since it is a long and expensive process to separate and refine the different rare earths contained.
Rare earths are the biggest bubble out there right now, and for sure the most misunderstood.
The rare earth's explorers with less than 10% ree are dreamers if they think they are going to get bought out. And even the ones with great high % big REE resources in north america, are going to need to find a way to ship those to a refiner who needs raw concentrates. Right now there are none who need any more, there is plentiful supplies of REEs out there. THERE IS A SHORTAGE OF REFINERS. The reasons for that have to do with the difficulty in processing them and the toxic waste that is created. MCP's Mountain Pass has enough rees for 100 years of demand in the western hemisphere, whether they can produce some products and turn a profit , well that is another whole question.
How will MCP deal with toxic leftovers once they get into big production??
MCP 's fall will be orderly , altho i suspect Morgan Chase and JPM, some of those involved in the IPO, now want to load themselves with very profitable debentures.
If MCP is such a great deal , why do they need to raise more $$ here. Production not making a profit?
I estimate that by the fall MCP should be around 40$ as they announce another Q of disappointment.
Molycorp, Inc. (NYSE: MCP), the Western Hemisphere's only producer of rare earth oxides, today announced that it has priced a $200 million aggregate principal amount offering of its 3.25% Convertible Senior Notes due 2016 (the “Notes”) in an offering exempt from the registration requirements of the Securities Act of 1933. The Notes are being offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. In addition, Molycorp has granted the initial purchasers of the Notes an option to purchase an additional $30 million aggregate principal amount of the Notes. The closing of the Notes offering is expected to occur on or about June 15, 2011, subject to satisfaction of customary closing conditions.
The Notes will be Molycorp’s senior unsecured obligations and will bear interest at a rate of 3.25% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, commencing on December 15, 2011. The Notes will be convertible at any time into shares of Molycorp’s common stock, cash, or a combination thereof, at Molycorp’s election. The conversion rate will initially be 14.0056 shares of Molycorp common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $71.40 per share of Molycorp’s common stock), subject to customary adjustments. The Notes will mature on June 15, 2016, unless earlier repurchased or converted in accordance with their terms prior to that date. Molycorp will not have the right to redeem the Notes prior to maturity.
Molycorp expects to use the net proceeds from the offering to fund its original Phase 1 production capacity plan as well as its Phase 2 expansion plan at its Mountain Pass, California processing facility. Any remaining net proceeds will be used for general corporate purposes. With this offering, Molycorp has raised nearly $800 million of proceeds that will be used to fully fund its original Phase 1 production capacity plan as well as its Phase 2 expansion plan at its Mountain Pass, California processing facility, the cost of which is currently estimated at $781 million.
The Notes and the shares of common stock issuable upon conversion of the Notes have not and will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy such securities and is issued pursuant to Rule 135c under the Securities Act of 1933.
About Molycorp
Colorado-based Molycorp, Inc. is the only REO producer in the Western Hemisphere and currently produces more than 3,000 metric tons of commercial rare earth materials per year. In addition to its flagship rare earth mine and processing facility at Mountain Pass, California, Molycorp also owns a controlling interest in the Estonia-based Molycorp Silmet AS, which has a production capacity of 3,000 metric tons of rare earth products and 700 metric tons of rare metal products annually and is one of the largest rare metal and rare earth metal producers in Europe. Additionally, Molycorp owns and operates Arizona-based Molycorp Metals and Alloys, one of the leading producers of high-purity rare earth alloys and metals outside of China. Following the execution of Molycorp's "mine-to-magnets" strategy and the expected 2012 completion of Phase 1 of its modernization and expansion efforts at its Mountain Pass, California processing facility, the Company expects to produce at a rate of approximately 19,050 metric tons of REO equivalent per year from Mountain Pass. The Company expects to achieve an annual production capacity at Mountain Pass by the end of 2013 of approximately 40,000 metric tons of REO equivalent per year after the completion of Phase 2. Molycorp intends to provide to the market a range of rare earth products, including high-purity oxides, metals, alloys, and permanent magnets. The Company currently sells products to customers in Europe, North and South America, Asia, Russia, and other previous nations of the Soviet Union.
Molycorp, Inc. (NYSE:MCP), the Western hemisphere’s only producer of rare earth oxides, today announced that its selling stockholders priced a public offering of 10,000,000 shares of Molycorp’s common stock (the “Common Stock”) at a price per share of $51.00. The selling stockholders have granted the underwriters an option to purchase up to an additional 1,500,000 shares of Common Stock. The Common Stock offering is expected to close on June 15, 2011, subject to customary closing conditions.
Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are acting as joint book-running managers for the offering. The offering is being made only by means of a prospectus. When available, copies of the prospectus relating to the offering may be obtained from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, Second Floor, New York, NY 10014 (email address: prospectus@morganstanley.com) or J.P. Morgan Securities LLC; c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717.
By the way i attended the Vancouver Resource show the past weekend, and took in the Jack Lifton presentation. Many there were expecting him to talk about rare earths as the presentation was on strategic metals. However his top three in the list of strategic metals were copper, silver and iron-ore , because of the massive ( and growing) amounts needed for industry.
Rare earths he did mention, but said it is such a small market , with huge reserves around the world, that he wouldnt rate them as being as important a strategic metal. For every windpower installation a ton of copper is needed and more steel than rare earth's is used. Every electric car has more steel and copper than rare earths, and all these will contain silver.
He went on to say that rare earths exports from CHINA have increased , if you count the finished products and devices which contain rare earths. The only quotas restricted are the raw rare earths exported, and particularly the heavy ree's. Refiners outside of CHINA will still have to compete with them, and China's rare earths are very low cost to extract because of them being a byproduct of a huge iron ore mine. In the end USA and other producers of refined products containing rare earth's such as magnets, flatscreen tvs etc, are still going to have to compete with the same product coming from China.
At the end of his speech , a few asked him about rare earth's and if he would buy any stocks . He said for the most part , rare earths explorers who have popped onto the scene in the past year or so would go bellyup in the next 2 years or turn their search towards other metals. The only ones he would buy are those that can mine rare earths economically , in jurisdictions where they will be allowed, and can produce a refined product at a profit. MCP was not mentioned, however GWG and RES were, he liked those two. Also mentioned that heavies have to be a major part of the refining process as that is where the real money is ,albeit a very small market. Light ree's are very plentiful even in refined forms , according to Lifton, and prices for the concentrates is not terrific.
He also mentioned UCU as possibly a good hree play.
