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Press release from Business Wire

Molycorp Reports Record Financial Performance in Q3 2011

<ul> <li class='bwlistitemmargb'> <i>Project Phoenix Accelerated</i> </li> <li class='bwlistitemmargb'> <i>Company Sets Records for Sales, Margin, and Income</i> </li> </ul> <p> </p>

Thursday, November 10, 2011

Molycorp Reports Record Financial Performance in Q3 201116:31 EST Thursday, November 10, 2011 GREENWOOD VILLAGE, Colo. (Business Wire) -- Molycorp, Inc. (NYSE: MCP): HIGHLIGHTS The Company's “Project Phoenix” modernization and expansion project has been accelerated to target Phase 1 production run rate of 19,050 metric tons per year by September 30, 2012, three months earlier than originally planned. Mechanical completion of Phase 2 has been accelerated by six months to year-end 2012. Company achieves record sales in Q3 of $138.1 million, a 39% increase over Q2 2011. Average sales price (ASP) rose 75% to $131.19 per kilogram of REO equivalent versus $75.14 in Q2 2011. Q3 gross margin increased to a record 63%, up from 57% in Q2 2011. Record operating income increased 72% to $72.1 million over Q2 2011. Q3 EPS of $0.52 per diluted share, or $0.67 adjusted for certain non-cash and other out-of-ordinary items (non-GAAP), per diluted share. Molycorp, Inc. (NYSE: MCP) (“Molycorp” or the “Company”) today announced financial and operating results for the third quarter of 2011, which included record performance in sales, margin, and income. RECORD SALES, MARGIN, AND INCOME The Company generated record sales of $138.1 million in Q3 2011, a 39% increase as compared to sales of $99.6 million in Q2 2011 and significantly higher than $8.5 million in Q3 2010. Sequential growth resulted from increased sales volume of lanthanum and didymium as well as a robust pricing environment across all products. Record operating income in Q3 increased 72% to $72.1 million as compared to Q2 2011, a material increase from the operating loss of $(10.2 million) in Q3 2010. Net income attributable to common stockholders increased 4% to $45.3 million, from $43.5 million in Q2 2011. Diluted earnings per share for Q3 2011 was $0.52, in-line with Q2 2011 of $0.52. Non- GAAP diluted earnings per share was $0.67, as compared to $0.56 per diluted share in Q2 2011. Non-GAAP earnings per share adjusts certain non-cash and other non-recurring items as compared to U.S. GAAP earnings per share. COMPANY ACCELERATING PROJECT PHOENIX Molycorp's “Project Phoenix” modernization and expansion plan at its flagship Mountain Pass, California rare earth facility has been accelerated, with the Company now expecting to achieve its Phase 1 production run rate of 19,050 metric tons per year by September 30, 2012, three months earlier than originally planned. The Company's Board of Directors authorized an additional investment of $114 million to fund the acceleration, which includes contingency funds. The acceleration of Project Phoenix Phase 1 will increase the Company's estimated 2012 production by approximately 3,500 metric tons of Rare Earth Oxide equivalent (“REO”), to between 8,000 and 10,000 metric tons. The project acceleration will also advance mechanical completion of Project Phoenix Phase 2 by six months, allowing the Company the capability of producing at an annual rate of 40,000 metric tons per year as early as mid-2013, if customer demand warrants. “During the third quarter, we achieved record sales, margin, and income,” said Mark Smith, Molycorp President and Chief Executive Officer. “This is a phenomenal accomplishment by our Molycorp family, particularly as we have simultaneously announced accelerated plans for Project Phoenix Phase 1 and 2 at Mountain Pass.” “In addition, we are pleased to have signed a new three-year agreement with the United Steelworkers, opened a customer service office in Japan, expanded initial sales of XSORBX, and announced our four-pronged strategy for heavy rare earth elements,” Smith said. “We continue to see favorable global market trends for rare earths, and our team is working hard to provide an increased, stable supply of rare earth products for these markets.” Other milestones during Q3 and the first several weeks of Q4 included the Company's $20 million investment in Boulder Wind Power and its acquisition of the remaining Molycorp Sillamäe shares for $10 million. Q3 SALES The Company achieved consolidated sales of $138.1 million for Q3 2011. This does not include an additional $37.2 million of intercompany sales, such as feedstock sent from Molycorp Mountain Pass to Molycorp Sillamäe for additional processing into higher-value products, and other intercompany sales. Gross sales at Molycorp Mountain Pass grew 64% to $124.9 million as compared to Q2 2011. The growth in Molycorp Mountain Pass gross sales was driven both by higher realized prices and by higher didymium and lanthanum product sales volumes, and was offset by lower cerium sales volume. Molycorp Sillamäe recorded sales of $35.9 million during the quarter, while Molycorp Tolleson recognized $14.4 million of sales in the period. Molycorp Mountain Pass sold 1,002 gross metric tons of REO equivalent products, a slight increase over Q2 2011 and a 92% year-over-year increase. Mountain Pass realized an average sales price of $124.65 per kilogram of REO equivalent. Molycorp Sillamäe's sales in Q3 2011 included 384 gross metric tons of REO equivalent products at an average sales price of $57.08 per kilogram and also included 88 metric tons of rare metals (niobium and tantalum) at an average sales price of $151.50 per kilogram. Molycorp Tolleson sold alloys, including neodymium-iron-boron and samarium-cobalt alloy, containing approximately 52 metric tons REO equivalent products to contribute $14.4 million in sales. UPDATED Q4 2011 & FY 2012 PRODUCTION GUIDANCE The following table provides ranges for expected production of rare earth products at Molycorp's three production facilities for the remainder of 2011*. The Company has also established an annual production guidance range for 2012, and anticipates production of REO equivalent products to be in a range of 8,000 metric tons to 10,000 metric tons for the full year.   Molycorp Minerals(Mountain Pass, CA)(range of mt of REO)   Molycorp Sillamäe(Sillamäe, Estonia)(range of mt of REO)   Molycorp Tolleson(Tolleson, AZ)(range of mt of REO)     Total(range of mt of REO)   LowRange   HighRangeLowRange   HighRangeLowRange   HighRangeLowRange   HighRange 1Q2011 (actuals) 499 499 229* 229* 68* 68* 796 796 2Q2011 (actuals) 815 815 381 381 53 53 1,249 1,249 3Q2011 (actuals) 739 739 417 417 72 72 1,228 1,228 4Q2011 850 1,200 400 430 63 72 1,313 1,702 2,9033,2531,4271,4572562654,5864,975 (600 tons oftotal alloy) (640 tons oftotal alloy) *Prior to our acquisitions in April 2011 CONFERENCE CALL TODAY AT 4:30 P.M. EASTERN Molycorp will conduct a conference call today to discuss these results at 4:30 p.m. EST, hosted by Mark Smith, Chief Executive Officer, and Jim Allen, Chief Financial Officer. Investors interested in participating in the live call from the U.S. should dial +1 (888) 334-3032 and reference confirmation number 7475624. Those calling from outside the U.S. should dial +1 (719) 457-2674 and use the same confirmation number. A telephone replay will be available approximately two hours after the call concludes through Thursday, November 24, 2011 by dialing +1 (877) 870-5176 from the U.S., or +1 (858) 384-5517 from international locations, and entering passcode: 7475624. There will also be a simultaneous live audio webcast available on the Investor Relations section of the Company's website at www.molycorp.com/investors. The webcast will be archived on the website for 180 days. Financial Statements: Balance SheetMOLYCORP, INC. (A Company in the Development Stage) Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and per share amounts)     September 30, 2011 December 31, 2010 ASSETS Current assets: Cash and cash equivalents $ 561,955 $ 316,430 Trade accounts receivable 67,929 16,421 Inventory 95,660 18,822 Deferred charges 12,391 - Prepaid expenses and other assets 7,540   1,759   Total current assets 745,475   353,432     Non-current assets: Deposits $ 23,287 $ 26,200 Property, plant and equipment, net 376,496 93,966 Deferred tax assets 17,982 - Inventory 4,678 5,212 Intangible assets, net 2,319 639 Investments 20,000 - Other assets 314   111   Total non-current assets 445,076   126,128   Total assets $ 1,190,551   $ 479,560     LIABILITIES AND EQUITY Current liabilities: Trade accounts payable $ 98,245 $ 13,009 Accrued expenses 11,141 4,225 Income taxes payable 2,869 - Debt 540 - Short-term borrowing - related party 1,750 3,085 Current portion of asset retirement obligation 395   393   Total current liabilities 114,940   20,712     Non-current liabilities: Asset retirement obligation $ 12,883 $ 12,078 Debt 196,482 - Other non-current liabilities 344   257   Total non-current liabilities 209,709   12,335   Total liabilities $ 324,649   $ 33,047       Equity: Common stock, $0.001 par value; 350,000,000 shares authorized at September 30, 2011 84 82 Preferred stock, $0.001 par value; 5,000,000 shares authorized at September 30, 2011 2 - Additional paid-in capital 865,865 539,866 Accumulated other comprehensive loss (3,817 ) - Deficit accumulated during the development stage (5,342 ) (93,435 ) Total Molycorp stockholders' equity 856,792 446,513 Noncontrolling interest 9,110   -   Total equity 865,902   446,513   Total liabilities and equity $ 1,190,551   $ 479,560     Financial Statements:Income StatementMOLYCORP, INC. (A Company in the Development Stage) Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (In thousands, except share and per share amounts)           Total from Three Months Ended Nine Months Ended June 12, 2008 September 30, September 30, (Inception) Through 2011       2010       2011       2010       September 30, 2011 Sales $ 138,050 $ 8,533 $ 263,927 $ 13,455 $ 308,313 Operating costs and expenses: Cost of goods sold (50,548 ) (7,742 ) (110,148 ) (19,268 ) (182,551 ) Selling, general and administrative (14,290 ) (4,117 ) (36,597 ) (12,851 ) (70,643 ) Stock-based compensation (611 ) (6,527 ) (3,922 ) (21,660 ) (33,052 ) Depreciation and amortization (305 ) (83 ) (670 ) (239 ) (1,200 ) Accretion expense (240 )     (216 )     (715 )     (695 )     (2,882 ) Operating income (loss) 72,056       (10,152 )     111,875       (41,258 )     17,985     Other income (expense): Other (expense) income (117 ) 14 (152 ) 80 238 Foreign currency transaction losses, net (2,000 ) - (1,850 ) - (1,850 ) Interest expense, net (671 )     (7 )     (461 )     (7 )     (396 ) (2,788 )     7       (2,463 )     73       (2,008 ) Income (loss) before income taxes 69,268 (10,145 ) 109,412 (41,185 ) 15,977 Income tax expense (20,852 )     -       (14,439 )     -       (14,439 ) Net income (loss) 48,416 (10,145 ) 94,973 (41,185 ) 1,538 Net loss (income) attributable to noncontrolling interest 255       -       (713 )     -       (713 ) Net income (loss) attributable to Molycorp stockholders $ 48,671 $ (10,145 ) $ 94,260 $ (41,185 ) $ 825   Net income (loss) $ 48,416 $ (10,145 ) $ 94,973 $ (41,185 ) $ 1,538 Other comprehensive income: Foreign currency translation adjustments (5,564 ) -   (4,240 ) -   (4,240 ) Comprehensive income (loss) $ 42,852   $ (10,145 ) $ 90,733   $ (41,185 ) $ (2,702 )   Comprehensive income (loss) attributable to: Molycorp stockholders $ 43,661 $ (10,145 ) $ 90,443 $ (41,185 ) $ (2,992 ) Noncontrolling interest (809 ) -   290   -   290   $ 42,852   $ (10,145 ) $ 90,733   $ (41,185 ) $ (2,702 )   Weighted average shares outstanding (Common shares) (1) Basic 83,847,119   69,550,649   83,321,816   56,027,460   56,239,632   Diluted 87,069,256   69,550,649   84,596,676   56,027,460   56,239,632   Income (loss) per share of common stock : Basic $ 0.54   $ (0.15 ) $ 1.05   $ (0.74 ) $ (0.11 ) Diluted $ 0.52   $ (0.15 ) $ 1.03   $ (0.74 ) $ (0.11 )   (1) Weighted average shares outstanding include the retroactive treatment of exchange ratios for conversion of Class A common stock and Class B common stock to common stock in conjunction with the initial public offering.   Financial Statements:Statement of Cash FlowsMOLYCORP, INC (A Company in the Development Stage) Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)       Total from Nine Months Ended June 12, 2008 September 30, (Inception) Through 2011 2010 September 30, 2011 Cash flows from operating activities: Net income (loss) $ 94,973 $ (41,185 ) $ 1,538   Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 11,294 4,059 22,141 Accretion of asset retirement obligation 715 695 2,882 Deferred income tax benefit (4,544 ) - (4,544 ) Non-cash inventory write-downs 1,585 1,555 23,602 Non-cash share-based compensation expense 4,042 21,660 33,172 Impairment of fixed assets - - 3,114 Foreing currency transaction losses, net 1,665 - 1,665 Other operating adjustments 796 13 739   Increase (decrease) in cash, excluding the effects of acquisitions and dispositions, resulting from changes in: Accounts receivable (42,250 ) (3,966 ) (59,221 ) Inventory (32,521 ) (2,955 ) (56,390 ) Prepaid expenses and other (1,596 ) 388 (2,619 ) Accounts payable (7,099 ) 3,265 (2,914 ) Asset retirement obligation (581 ) (507 ) (1,600 ) Accrued expenses   2,245     (4,264 ) 8,731   Net cash provided by (used in) operating activities   28,724     (21,242 ) (29,704 ) Cash flows from investing activities: Acquisition of the Mountain Pass facility - - (82,150 ) Cash paid in connection with acquisitions, net of cash acquired (20,021 ) - (20,021 ) Proceeds from sale of investment in joint venture - - 9,700 Cash paid to acquire non-marketable securities (20,000 ) - (20,000 ) Deposits 2,946 (20,200 ) (23,254 ) Capital expenditures (160,917 ) (12,965 ) (201,652 ) Other assets - - (111 ) Proceeds from sale of assets   19     9   33   Net cash used in investing activities   (197,973 )   (33,156 ) (337,455 ) Cash flows provided by financing activities: Capital contributions from original stockholders - 15,000 125,004 Repayments of short-term borrowings - related party (2,343 ) - (3,450 ) Repayments of debt (5,447 ) - (5,447 ) Net proceeds from sale of common stock in conjunction with the initial public offering - 378,633 378,633 Net proceeds from sale of preferred stock 199,642 - 199,642 Net proceeds from sale of convertible notes 223,100 - 223,100 Payment of financing costs - - (185 ) Payment of preferred dividends (6,167 ) - (6,167 ) Proceeds from exercise of stock options - 300 350 Proceeds from short-term borrowings - related party - 5,008 11,645 Proceeds from debt   6,337     -   6,337   Net cash provided by financing activities   415,122     398,941   929,462   Effect of exchange rate changes on cash   (348 )   -   (348 ) Net change in cash and cash equivalents 245,525 344,543 561,955 Cash and cash equivalents at beginning of the period   316,430     6,929   -   Cash and cash equivalents at end of period $   561,955   $   351,472   $ 561,955     Supplemental disclosure of non-cash activities: Change in accrued capital expenditures $ 61,783   $ 2,757   Net cash paid for taxes $ 28,505   $ -     Segment Information   MolycorpMountain Pass   MolycorpSillamäe   MolycorpTolleson   Other andEliminations   TotalMolycorp Three Months Ended September 30, 2011 (In thousands)         Sales: External $ 94,341 $ 29,260 $ 14,449 $ - $ 138,050 Intersegment   30,535     6,652     -   (37,187 ) - Total sales 124,876 35,912 14,449 Cost of goods sold (20,921 ) (35,761 ) (13,833 ) 19,967 (50,548 ) Selling, general and administrative expenses (13,897 ) (212 ) (184 ) 3 (14,290 ) Depreciation, amortization and accretion expense (338 ) (398 ) 191 - (545 ) Stock-based compensation   (591 )   (7 )   (13 )   -     (611 ) Operating income (loss) 89,129 (466 ) 610 (17,217 ) 72,056 Other (expense) income   (695 )   (2,099 )   6     -     (2,788 ) Income (loss) before income taxes $ 88,434   $ (2,565 ) $ 616   $ (17,217 ) $ 69,268   Total assets at September 30, 2011 $ 1,184,137   $ 122,316   $ 33,032   $ (148,934 ) $ 1,190,551   Capital expenditures (accrual basis) $ 106,162   $ 2,300   $ -   $ -   $ 108,462       MolycorpMountain Pass   MolycorpSillamäe   MolycorpTolleson   Other andEliminations   TotalMolycorp Three Months Ended June 30, 2011 (In thousands)         Sales: External $ 60,348 $ 29,017 $ 10,250 $ - $ 99,615 Intersegment   15,947     3,639     -   (19,586 ) - Total sales 76,295 32,656 10,250 Cost of goods sold (21,709 ) (20,472 ) (11,143 ) 10,401 (42,923 ) Selling, general and administrative expenses (12,294 ) (1,411 ) (112 ) - (13,817 ) Depreciation, amortization and accretion expense (332 ) - (191 ) - (523 ) Stock-based compensation   (412 )   -     -     -     (412 ) Operating income (loss) 41,548 10,773 (1,196 ) (9,185 ) 41,940 Other (expense) income   304     (103 )   2     -     203   Income (loss) before income taxes $ 41,852   $ 10,670   $ (1,194 ) $ (9,185 ) $ 42,143   Total assets at June 30, 2011 $ 1,099,900   $ 152,984   $ 29,705   $ (140,923 ) $ 1,141,666   Capital expenditures (accrual basis) $ 70,742   $ 2,231   $ -   $ -   $ 72,973     Earnings per Share   Three MonthsEndedSeptember 30, 2011   Three Months EndedJune 30, 2011   Three MonthsEndedSeptember 30, 2010 (In thousands, except share and per share amounts) Net income (loss) attributed to Molycorp stockholders $ 48,671 $ 47,787 $ (10,145 ) Cumulative undeclared and paid dividends on preferred stock      (3,795 )   (4,269 )   —   Income (loss) attributed to common stockholders   44,876     43,518     (10,145 ) Weighted average common shares outstanding — basic 83,847,119 83,847,119 69,550,649 Basic earnings (loss) per share $ 0.54   $ 0.52   $ (0.15 ) Income (loss) attributed to common stockholders 44,876   43,518   (10,145 ) Effect of dilutive Notes   404     —     —   Income (loss) attributed to common stockholders   45,280     43,518     (10,145) Weighted average common shares outstanding — dilutive 87,069,256 84,413,499 69,550,649 Dilutive earnings (loss) per share $0.52   $0.52   $(0.15 )   Non-GAAP Financial MeasuresAdjusted Net Income (Loss)           (in thousands, except per share data) Three months ended Nine months ended Three months ended September 30, September 30, June 30, 2011   2010 2011   2010 2011 Net income (loss) attributable to Molycorp stockholders $ 48,671 $ (10,145 )   $ 94,260 $ (41,185 )   $ 47,787 Stock-based compensation 656 6,527 4,042 21,660 452 Asset impairments/ inventory write-down - 640 1,585 1,555 955 Impact of purchase accounting on cost of inventory sold (1) 10,226 - 10,226 - - Net (gain)/loss on asset sales 150 - 37 13 (113 ) Project Phoenix administrative expenses 1,293 - 1,293 - - Due diligence and other transaction costs 728 100 4,955 996 2,792 Organization and operations consulting costs 1,672 - 4,347 - 2,108 Income tax effect of above adjustments   (1,755 )     -     (5,723 )     -     (2,043 ) Adjusted net income (loss) $ 61,641 $ (2,878 ) $ 115,022 $ (16,961 ) $ 51,938 Cumulative paid and undeclared dividends on preferred stock (3,795 ) - (7,116 ) - (4,269 ) Effect of dilutive 3.25% Convertible Notes   404       -     413       -     -   Adjusted net income (loss) attributed to common stockholders for dilutive EPS purposes   58,250       (2,878 )   108,319       (16,961 ) 47,669   Weighted average diluted shares outstanding   87,069,256       69,550,649     84,596,676       56,027,460   84,413,499   Adjusted diluted net income (loss) per share $ 0.67     $ (0.04 ) $ 1.28     $ (0.30 ) $ 0.56       (1) Purchase price adjustment to Molycorp Sillamäe's inventory related to inventory sold as of 9/30/2011.   Adjusted EPS is a non-GAAP measure that excludes certain non-cash items and other out-of-ordinary operational items. The company's management believes adjusting out these items, including but not limited to purchase accounting adjustments, stock based compensation, out-of-ordinary expenses/income and other miscellaneous charges is useful to investors because it provides an overall understanding of the company's historical financial performance and future prospects. Management believes adjusted EPS is an indication of the company's base-line performance. Exclusion of these items permits evaluation and comparison of results for the company's core business operations, and it is on this basis that management internally assesses the company's performance. Adjusted Gross Margin                   (in thousands) Three months ended Nine months ended Three months ended September 30, September 30, June 30,   2011     2010     2011     2010     2010   Sales $ 138,050 $ 8,533 $ 263,927 $ 13,455 $ 99,615 GAAP cost of goods sold   (50,548 )   (7,742 )   (110,148 )   (19,268 )   (42,923 ) Gross margin $ 87,502   $ 791   $ 153,779   $ (5,813 ) $ 56,692   Gross margin percentage   63.4 %   9.3 %   58.3 %   -43.2 %   56.9 %   Sales $ 138,050 $ 8,533 $ 263,927 $ 13,455 $ 99,615 GAAP cost of goods sold (50,548 ) (7,742 ) (110,148 ) (19,268 ) (42,923 ) Asset impairments/ inventory write-down - 640 1,585 1,555 955 Stock-based compensation in cost of goods sold 45 - 120 - 40 Operations consulting costs 1,000 - 3,000 - - Impact of purchase accounting on cost of inventory sold (1)   10,226     -     10,226     -     -   Adjusted cost of goods sold   (39,277 )   (7,102 )   (95,217 )   (17,713 )   (41,928 ) Adjusted gross margin $ 98,773   $ 1,431   $ 168,710   $ (4,258 ) $ 57,687   Adjusted gross margin percentage   71.5 %   16.8 %   63.9 %   -31.6 %   57.9 % Adjusted Gross margin is a non-GAAP measure that is included to provide additional detail on segment operations, before intercompany eliminations. Management believes this presentation provides a better understanding of the performance of each operating segment in terms of production volumes, inventory allocation, and costs. About Molycorp With offices in the U.S., Europe, and Japan, Molycorp, Inc. is the largest REO producer outside of China. In addition to its current production of rare earth oxides at its flagship rare earth mine and processing facility at Mountain Pass, California, the Company produces rare earth metals, rare earth alloys (such as neodymium- iron-boron and samarium-cobalt alloys) and rare metals such as niobium and tantalum. The rare earths and rare metals Molycorp produces are critical inputs in existing and emerging applications including: clean energy technologies, such as hybrid and electric vehicles and wind power turbines; multiple high-tech uses, including fiber optics, lasers and hard disk drives; numerous defense applications, such as guidance and control systems and global positioning systems; advanced water treatment technology for use in industrial, military and outdoor recreation applications; and other technologies. For more information, please visit http://www.molycorp.com. Safe Harbor Statement Regarding Forward-Looking Statements This release contains forward-looking statements that represent Molycorp's beliefs, projections and predictions about future events or Molycorp's future performance. Forward-looking statements can be identified by terminology such as “may,” “will,” “would,” “could,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms or other similar expressions or phrases. These forward-looking statements are necessarily subjective and involve known and unknown risks, uncertainties and other important factors that could cause Molycorp's actual results, performance or achievements or industry results to differ materially from any future results, performance or achievement described in or implied by such statements. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to: Molycorp's ability to secure additional capital to implement its business plans; Molycorp's ability to complete its initial modernization and expansion efforts, including the accelerated start-up of the Mountain Pass facility, which management refers to as Project Phoenix Phase 1, and the second phase capacity expansion plan, which management refer to as Project Phoenix Phase 2, and reach full planned production rates for REOs and other planned downstream products; the final costs of the Project Phoenix Phase 1, including with accelerated start-up of the Mountain Pass facility, and Project Phoenix Phase 2, which may differ from estimated costs; uncertainties associated with Molycorp's reserve estimates and non-reserve deposit information; uncertainties regarding global supply and demand for rare earths materials; Molycorp's ability to successfully integrate recently acquired businesses; Molycorp's ability to reach definitive agreements for a joint venture to manufacture neodymium-iron-boron permanent rare earth magnets; Molycorp's ability to maintain appropriate relations with unions and employees; Molycorp's ability to successfully implement its “mine-to-magnets” strategy; environmental laws, regulations and permits affecting Molycorp's business, directly and indirectly, including, among others, those relating to mine reclamation and restoration, climate change, emissions to the air and water and human exposure to hazardous substances used, released or disposed of by Molycorp; and uncertainties associated with unanticipated geological conditions related to mining. For more information regarding these and other risks and uncertainties that Molycorp may face, see the section entitled “Risk Factors” of the Company's Annual Report on Form 10-K for the year ended December 31, 2010 and of the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2011. Any forward-looking statement contained in this press release or the Annual Report on Form 10-K or the Quarterly Report on Form 10-Q reflects Molycorp's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to Molycorp's operations, operating results, growth strategy and liquidity. You should not place undue reliance on these forward-looking statements because such statements speak only as to the date when made. Molycorp assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future, except as otherwise required by applicable law. Molycorp, Inc.Jim Sims, +1 303-843-8062Vice President Corporate CommunicationsJim.Sims@Molycorp.comorBrian Blackman, +1 303-843-8067Senior Manager, Investor RelationsBrian.Blackman@Molycorp.com