Colorado-based Molycorp, Inc. is the only rare earth oxide (REO) producer in the Western Hemisphere and the largest REO producer outside of China. 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. One of the largest rare earth and rare metal producers in Europe, Molycorp Silmet AS has an annual production capacity of approximately 3,000 metric tons of rare earth products and 700 metric tons of rare metal products. Molycorp also owns Molycorp Metals and Alloys in Tolleson, Arizona.

Molycorp Reports Second Quarter 2011 Results
“Project Phoenix” modernization and expansion project remains on time and on budget at Company’s flagship rare earth production facility in Mountain Pass, Calif.
Company reaches profitability with record net sales of $99.6 million in Q2 2011
Q2 2011 sales volume of rare earth oxide (REO) equivalent rose 58% over Q1 2011 and 314% year-over-year, including rare earth alloy sales.
The Company’s average realized sales price in Q2 2011 rose 91% to $72.10 per kilogram of REO equivalent from $37.73 per kilogram in Q1 2011.
The Company’s average realized sales price in Q2 for rare metals (niobium and tantalum) was $167.50 per kilogram.
Q2 Gross Margin of approximately 57%
EPS of $0.52 per fully diluted share
Successfully renegotiated its current major lanthanum supply contract to allow for higher realized sales prices.
Awarded an EPC contract for construction of a chlor-alkali plant, a major component of the Company’s $781 million Project Phoenix expansion and modernization project
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Molycorp, Inc. (NYSE:MCP) announced financial and operating performance for the second quarter of 2011.
Molycorp’s $781 million modernization and expansion project at its flagship Mountain Pass, Calif., Rare Earth facility continues on time and on budget, with an annual Phase 1 production rate of 19,050 metric tons of rare earth oxide (REO) equivalent to be achieved by the end of 2012.
The Company generated revenue of $99.6 million in Q2 2011, which compares to revenue of $26.3 million in Q1 2011 and $1.9 million in Q2 2010. Sequential growth resulted from a combination of robust results from its Mountain Pass facility, and the inclusion of revenue from the Company’s recently acquired subsidiaries, Molycorp Metals and Alloys (MMA) of Tolleson, Ariz., and Molycorp Silmet AS (Silmet), located in Sillamae, Estonia.
Mountain Pass revenue grew 130% sequentially to $60.3 million, net of intercompany sales. The growth in Mountain Pass revenue was driven both by higher realized prices and by higher volumes. Market prices for rare earth elements continued to climb during the quarter, as global supplies remain extremely tight. Silmet contributed $29.0 million to revenue net of intercompany sales, while MMA recognized $10.3 million of sales in the period subsequent to the acquisition.
Net income attributable to common stockholders was $43.5 million, or $0.52 per fully diluted share as compared to net losses attributable to common stockholders of $(3.4 million) or $(0.04) per share in Q1 2011 and $(23.3 million) or $(0.47) per share in Q2 2010.
More about MCP at www.molycorp.com

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