UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): May 7, 2015
 
Molycorp, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware
 
001-34827
 
27-2301797
(State or other jurisdiction of incorporation)
 
(Commission File
Number)
 
(IRS Employer Identification No.)
 
5619 Denver Tech Center Parkway,
Suite 1000,
Greenwood Village, CO
 
80111
(Address of principal executive offices)
 
(Zip Code)
 
Registrant’s telephone number, including area code: (303) 843-8040
  
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))






Item 2.02.      Results of Operations and Financial Condition.
 
On May 7, 2015, Molycorp, Inc. (the "Company") issued a press release announcing financial results for its first quarter 2015. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
 
The information contained in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished to the Securities and Exchange Commission and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. Furthermore, the information contained in Item 2.02 of this Current Report on Form 8-K shall not be deemed to be incorporated by reference into any filing made by Molycorp, Inc. under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as set forth by specific reference in such filing.


Item 9.01.      Financial Statements and Exhibits.
 
(d) Exhibits.
 
Exhibit Number
 
Description
 
 
 
99.1

 
Press Release issued by Molycorp, Inc. on May 7, 2015







SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
MOLYCORP, INC.
 
 
 
 
 
 
 
By:
/s/ Michael F. Doolan
 
Name:
Michael F. Doolan
 
Title:
Chief Financial Officer
 
 
 
Date: May 7, 2015
 
 







Exhibit Index
 
Exhibit Number
 
Description
 
 
 
99.1

 
Press Release issued by Molycorp, Inc. on May 7, 2015







Exhibit 99.1
  
For Release:  7:00 a.m. Eastern, May 7, 2015 

Molycorp (NYSE: MCP) Reports First Quarter 2015 Financial Results

HIGHLIGHTS:
•
The Company reported higher production volumes in the first quarter of 2015 at its Mountain Pass, California rare earth facility of 1,479 metric tons ("mt") of rare earth oxide ("REO") equivalent. This was an 11% increase over the fourth quarter 2014 production of 1,328 mt.
•
The Company reported first quarter 2015 product sales volume of 3,436 mt on a consolidated basis, a 9% increase over the fourth quarter of 2014. The Company achieved an average selling price ("ASP") of $30.97 per kilogram in the first quarter of 2015, versus an ASP of $36.91 in the preceding quarter, a 16% decline.
•
Net revenues for the quarter were $106 million, an 8% decrease from the fourth quarter of 2014.
•
The Company reported a net loss of $0.42 per share for the quarter. The Company also reported a net loss of $0.28 per share for the quarter on an adjusted non-GAAP basis, which compares to an adjusted non-GAAP loss of $0.39 in the fourth quarter of 2014.
•
The Company was selected by Siemens AG to supply rare earths over the next 10 years for high-power, sintered rare earth permanent magnets used in Siemens' wind turbine generators.

Greenwood Village, CO (May 7, 2015) - Molycorp, Inc. (NYSE: MCP) (“Molycorp” or the “Company”) today announced financial and operating results for the first quarter of 2015.

FIRST QUARTER 2015 RESULTS
The Company reported consolidated net revenues of $106 million, an 8% decrease over the fourth quarter of 2014. The decrease in revenues was largely driven by a shifting product mix and softened pricing for rare earths, offset in part by increased volume.
During the first quarter of 2015, the Company sold 3,436 mt of product at an ASP of $30.97 per kilogram, generating a gross loss of $25 million. This compares to sales volumes of 3,149 mt at an ASP of $36.91 per kilogram and a gross loss of $45 million during the fourth quarter of 2014.
Molycorp reported a loss attributable to common stockholders of $102 million for the quarter, or $0.42 per share. An adjusted loss per share of $0.28 in the quarter does not reflect charges for impairment of inventory at Mountain Pass, out-of-ordinary business expenses, and certain other non-cash items.
The Company reported negative cash flows from operating activities of $73 million during the first quarter of 2015, and had $134 million in cash and cash equivalents as of March 31, 2015. During the three months ended March 31, 2015, Molycorp's capital expenditures were $6 million on a cash basis.

NON-GAAP ADJUSTED NET LOSS, OIBDA and ADJUSTED OIBDA
Adjusted Net Loss excludes certain non-cash items and other out-of-ordinary business expense and operational expansion items. The Company defines OIBDA as operating income before depreciation, amortization and accretion. Adjusted OIBDA consists of OIBDA excluding certain non-cash items and other out-of-ordinary business expense and operational expansion items. Adjusted Net Loss, OIBDA, and Adjusted OIBDA are all non-GAAP financial measures. There have been no changes in the calculation method of previously disclosed non-GAAP financial measures. The Company's management believes adjusting out these items from Net Loss and OIBDA, including but not limited to purchase accounting adjustments, stock-based compensation, out-of-ordinary expenses/income, asset impairment charges, 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 that Adjusted Net Loss, OIBDA, and Adjusted OIBDA are 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.




# # #

FOR MORE INFORMATION:
 
Company Contacts:
 
Jim Sims, +1 (303) 843-8062
Vice President Corporate Communications
jim.sims@molycorp.com
 
Brian Blackman, +1 (303) 843-8067
Vice President Investor Relations
brian.blackman@molycorp.com
 






















FINANCIAL STATEMENTS AND SUPPLEMENTARY TABLES
 
TABLE 1: BALANCE SHEETS
MOLYCORP, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except shares and per share amounts)
 
March 31, 2015
 
December 31, 2014
ASSETS
Current assets:
 
 
 
Cash and cash equivalents
$
133,599

 
$
211,685

Trade accounts receivable, net
47,697

 
44,575

Inventory
180,810

 
169,323

Prepaid expenses and other current assets
36,013

 
29,332

Total current assets
398,119

 
454,915

Non-current assets:
 
 
 
Deposits
31,213

 
31,078

Property, plant and equipment, net
1,691,051

 
1,707,970

Inventory
24,724

 
25,127

Intangible assets, net
211,726

 
215,871

Investments
7,793

 
8,801

Goodwill
102,808

 
102,808

Other non-current assets
27,350

 
29,416

Total non-current assets
2,096,665

 
2,121,071

Total assets    
$
2,494,784

 
$
2,575,986

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 
 
 
Trade accounts payable
$
35,102

 
$
40,842

Accrued expenses
30,718

 
33,666

Interest payable
28,184

 
18,300

Debt and capital lease obligations
13,953

 
12,560

Other current liabilities
5,691

 
4,686

Total current liabilities
113,648

 
110,054

Non-current liabilities:
 
 
 
Asset retirement obligation
17,876

 
17,799

Deferred tax liabilities
63,731

 
63,802

Debt and capital lease obligations
1,570,801

 
1,559,781

Other non-current liabilities
20,140

 
20,247

Total non-current liabilities
1,672,548

 
1,661,629

Total liabilities     
$
1,786,196

 
$
1,771,683

 
 
 
 
Stockholders’ equity:
 
 
 
Common stock, $0.001 par value; 700,000,000 shares authorized at March 31, 2015 and December 31, 2014
278

 
260

Additional paid-in capital
2,247,199

 
2,245,478

Accumulated other comprehensive loss
1,466

 
(3,323
)
Accumulated deficit
(1,547,742
)
 
(1,445,408
)
Total Molycorp stockholders’ equity
701,201

 
797,007

Noncontrolling interests
7,387

 
7,296

Total stockholders’ equity
708,588

 
804,303

Total liabilities and stockholders’ equity    
$
2,494,784

 
$
2,575,986





TABLE 2: INCOME STATEMENTS AND EARNINGS PER SHARE
 
MOLYCORP, INC.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except shares and per share amounts)

 
First Quarter
 
Fourth Quarter
 
First Quarter
 
2015
 
2014
 
2014
Revenues
$
106,424

 
$
116,242

 
$
118,526

Costs of sales:
 
 
 
 
 
Costs excluding depreciation and amortization
(105,874
)
 
(122,912
)
 
(125,473
)
Depreciation and amortization
(25,280
)
 
(38,174
)
 
(16,147
)
Gross loss
(24,730
)
 
(44,844
)
 
(23,094
)
Operating expenses:
 
 
 
 
 
Selling, general and administrative
(21,457
)
 
(14,204
)
 
(17,956
)
Depreciation, amortization and accretion
(5,573
)
 
(7,327
)
 
(7,201
)
Research and development
(3,141
)
 
(3,662
)
 
(2,766
)
Impairment of goodwill and other long-lived assets
—

 
(231,650
)
 
—

Operating loss
(54,901
)
 
(301,687
)
 
(51,017
)
 
 
 
 
 
 
Other income (expense)
2,123

 
(6,399
)
 
474

Interest expense, net of capitalized interest
(46,300
)
 
(55,008
)
 
(35,639
)
Gain on extinguishment of convertible notes, net
—

 
19,719

 
—

Loss before income taxes and equity earnings
(99,078
)
 
(343,375
)
 
(86,182
)
Income tax (expense) benefit
(2,968
)
 
16,832

 
1,907

Equity in loss of affiliates
(224
)
 
(21,395
)
 
(1,723
)
Net loss
(102,270
)
 
(347,938
)
 
(85,998
)
Net (income) loss attributable to noncontrolling interests
(64
)
 
18,142

 
(63
)
Net loss attributable to Molycorp stockholders
$
(102,334
)
 
$
(329,796
)
 
$
(86,061
)
 
 
 
 
 
 
 Earnings per share of common stock:
 
 
 
 
 
Net loss attributable to Molycorp stockholders
$
(102,334
)
 
$
(329,796
)
 
$
(86,061
)
Dividends on Convertible Preferred Stock
—

 
—

 
(2,846
)
Loss attributable to common stockholders
$
(102,334
)
 
$
(329,796
)
 
$
(88,907
)
 
 
 
 
 
 
Weighted average common shares outstanding—basic
245,808,011

 
229,960,050

 
221,374,589

Basic loss per share:
$
(0.42
)
 
$
(1.43
)
 
$
(0.40
)
 
 
 
 
 
 
Weighted average common shares outstanding—diluted
245,808,011

 
229,960,050

 
221,374,589

Diluted loss per share:
$
(0.42
)
 
$
(1.43
)
 
$
(0.40
)
 








TABLE 3: STATEMENTS OF CASH FLOWS
 
MOLYCORP, INC
Consolidated Statements of Cash Flows (Unaudited)
(In thousands) 

 
Three Months Ended March 31,
 
2015
 
2014
Cash flows from operating activities:
 
 
 
Net loss
(102,270
)
 
$
(85,998
)
Adjustments to reconcile net loss to net cash from operating activities:
 
 
 
Depreciation, amortization and accretion
30,853

 
23,348

Deferred income tax (benefit) expense
231

 
(6,097
)
Inventory write-downs
28,868

 
17,371

Stock-based compensation
1,503

 
822

Equity in results of affiliates
224

 
1,723

PIK interest
3,106

 
—

Other operating adjustments
3,963

 
831

Net change in operating assets and liabilities
(39,363
)
 
2,215

Net cash used in operating activities
(72,885
)
 
(45,785
)
Cash flows from investing activities:
 
 
 
Capital expenditures
(6,333
)
 
(29,752
)
Other investing activities
947

 
493

Net cash used in investing activities
(5,386
)
 
(29,259
)
Cash flows from financing activities:
 
 
 
Repayments of debt
979

 
(489
)
Payments of preferred dividends
—

 
(2,846
)
Dividend paid to noncontrolling interests
(40
)
 
(435
)
Other financing activities
(781
)
 
1,323

Net cash used in financing activities
158

 
(2,447
)
Effect of exchange rate changes on cash
27

 
(776
)
Net change in cash and cash equivalents
(78,086
)
 
(78,267
)
Cash and cash equivalents at beginning of the period
211,685

 
314,317

Cash and cash equivalents at end of period
$
133,599

 
$
236,050


























TABLE 4: SEGMENT INFORMATION

Three months ended March 31, 2015
Resources
 
Chemicals and Oxides
 
Magnetic Materials and Alloys
 
Rare Metals
 
Corporate and other
 
Eliminations
 
Total Molycorp, Inc.
 
(In thousands)
Revenues:
 
External
$
2,514

 
$
37,288

 
$
50,508

 
$
16,114

 
 
 
$
—

 
$
106,424

Inter-segment
8,315

 
5,508

 
1,616

 
15

 
 
 
(15,454
)
 
—

Total revenues
$
10,829

 
$
42,796

 
$
52,124

 
$
16,129

 
 
 
$
(15,454
)
 
$
106,424

OIBDA
$
(34,848
)
 
$
5,737

 
$
12,247

 
$
1,594

 
 
 
 
 
 
Depreciation, amortization and accretion
(21,954
)
 
(2,283
)
 
(4,156
)
 
(2,405
)
 
 
 
 
 


Operating (loss) income
$
(56,802
)
 
$
3,454

 
$
8,091

 
$
(811
)
 
$
(12,079
)
 
$
3,246

 
$
(54,901
)
Other expense
 
 
 
 
 
 
 
 
 
 
 
 
2,123

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(46,300
)
Loss before income taxes and equity earnings
 
 
 
 
 
 
 
 
 
 
 
 
$
(99,078
)
Quarter ended December 31, 2014
Resources
 
Chemicals and Oxides
 
Magnetic Materials and Alloys
 
Rare Metals
 
Corporate and other
 
Eliminations
 
Total Molycorp, Inc.
 
(In thousands)
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
External
$
4,145

 
$
36,844

 
$
53,535

 
$
21,718

 
 
 
$
—

 
$
116,242

Inter-segment
4,510

 
5,918

 
3,865

 
—

 
 
 
(14,293
)
 
—

Total revenues
$
8,655

 
$
42,762

 
$
57,400

 
$
21,718

 
 
 
$
(14,293
)
 
$
116,242

OIBDA
(48,327
)
 
(214,975
)
 
13,762

 
(1,706
)
 
 
 
 
 
 
Depreciation, amortization and accretion
(31,307
)
 
(5,797
)
 
(4,226
)
 
(4,116
)
 
 
 
 
 
 
Operating (loss) income
$
(79,634
)
 
$
(220,772
)
 
$
9,536

 
$
(5,822
)
 
$
(7,936
)
 
$
2,941

 
$
(301,687
)
Other expense
 
 
 
 
 
 
 
 
 
 
 
 
(3,615
)
Foreign exchange loss, net
 
 
 
 
 
 
 
 
 
 
 
 
(2,784
)
Interest expense, net of capitalized interest
 
 
 
 
 
 
 
 
 
 
 
 
(55,008
)
Gain on extinguishment of convertible notes, net
 
 
 
 
 
 
 
 
 
 
 
 
19,719

Loss before income taxes and equity earnings
 
 
 
 
 
 
 
 
 
 
 
 
$
(343,375
)

Three months ended March 31, 2014
Resources
 
Chemicals and Oxides
 
Magnetic Materials and Alloys
 
Rare Metals
 
Corporate and other
 
Eliminations
 
Total Molycorp, Inc.
 
(In thousands)
Revenues:
 
External
$
3,111

 
$
40,271

 
$
54,720

 
$
20,424

 
 
 
$
—

 
$
118,526

Inter-segment
12,453

 
6,285

 
1,218

 
—

 
 
 
(19,956
)
 
—

Total revenues
$
15,564

 
$
46,556

 
$
55,938

 
$
20,424

 
 
 
$
(19,956
)
 
$
118,526

OIBDA
$
(36,445
)
 
$
3,299

 
$
13,676

 
$
(70
)
 
 
 
 
 
 
Depreciation, amortization and accretion
(13,091
)
 
(3,872
)
 
(4,237
)
 
(2,093
)
 

 

 


Operating (loss) income
$
(49,536
)
 
$
(573
)
 
$
9,439

 
$
(2,163
)
 
$
(7,109
)
 
$
(1,075
)
 
$
(51,017
)
Other expense
 
 
 
 
 
 
 
 
 
 
 
 
474

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(35,639
)
Loss before income taxes and equity earnings


 


 


 
 
 


 


 
$
(86,182
)






TABLE 5: PRODUCT REVENUES, SALES VOLUME, ASP

 
First Quarter
 
Fourth Quarter
 
First Quarter
Revenues (in thousands)
2015
 
2014
 
2014
Resources (1)
$
10,829

 
$
8,655

 
$
15,564

Chemicals and Oxides (2)
42,796

 
42,762

 
46,556

Magnetic Materials and Alloys (3)
52,124

 
57,400

 
55,938

Rare Metals (4)
16,129

 
21,718

 
20,424

Inter-segment eliminations
(15,454
)
 
(14,293
)
 
(19,956
)
Total Net Revenues
$
106,424

 
$
116,242

 
$
118,526

 
 
 
 
 
 
Sales volume (in metric tons)
 
 
 
 
 
Resources
1,269

 
898

 
988

Chemicals and Oxides
1,800

 
1,446

 
1,926

Magnetic Materials and Alloys (a)
1,444

 
1,440

 
1,374

Rare Metals
92

 
126

 
101

Inter-segment eliminations
(1,169
)
 
(761
)
 
(871
)
(a) Includes magnetic powders and rare earth alloys.
 
 
 
 
 
 
 
 
 
 
 
ASP per kilogram
 
 
 
 
 
Resources
$
8.56

 
$
9.64

 
$
15.75

Chemicals and Oxides
23.78

 
29.57

 
24.17

Magnetic Materials and Alloys
36.10

 
39.86

 
40.71

Rare Metals
175.29

 
172.38

 
202.21

 
 
 
 
 
 
1. The Resources segment includes operations at our Mountain Pass facility where we conduct rare earth minerals extraction and processing to produce: purified unseparated light rare earth concentrates, or LREC; separated rare earth oxides, including lanthanum, cerium and neodymium/praseodymium; heavy rare earth concentrates, which include samarium, europium, gadolinium, terbium, dysprosium and others; and a line of proprietary rare earth-based water treatment products, including SorbX® and PhosFIX®.
2. The Chemicals and Oxides segment includes: production of rare earths at our operations at Molycorp Silmet; separated heavy rare earth oxides and other custom engineered materials from our facilities in Jiangyin, Jiangsu Province, China; and production of rare earths, salts of REEs, zirconium-based engineered materials and mixed rare earth/zirconium oxides from our facilities in Zibo, Shandong Province, China. Rare earths and zirconium applications from products made in this segment include catalytic converters, computers, television display panels, optical lenses, mobile phones, electronic chips, and many others. 
3. The Magnetic Materials and Alloys segment includes the production of Neo Powders™ through our wholly-owned manufacturing facilities in Tianjin, China, and Korat, Thailand, under the Molycorp Magnequench brand. This operating segment also includes manufacturing of neodymium and samarium magnet alloys, other specialty alloy products and rare earth metals at our MMA facility in Tolleson, Arizona. Neo Powders™ are used in the production of high performance, bonded NdFeB permanent magnets, which are found in micro-motors, precision motors, sensors, and other applications requiring high levels of magnetic strength, flexibility, small size, reduced weight, and energy efficient performance.
4. The Rare Metals segment produces, reclaims, refines and markets high value niche metals and their compounds that include gallium, indium, rhenium, tantalum, and niobium. Operations in this segment are distributed in several locations: Quapaw, Oklahoma; Blanding, Utah; Peterborough, Ontario, Canada; Sagard, Germany; Hyeongok Industrial Zone in South Korea; and Sillamäe, Estonia. Applications from products made in this segment include wireless technologies, LEDs, flat panel displays, turbines, solar power catalysts, steel additives, electronics applications, and many others.












TABLE 6: NON-GAAP ADJUSTED NET LOSS, OIBDA and ADJUSTED OIBDA RECONCILIATION
 
(In thousands, except shares and per share data)

Adjusted Net Loss
 
 
 
 
 
 
First Quarter
 
Fourth Quarter
 
First Quarter
 
2015
 
2014
 
2014
Net loss attributable to Molycorp stockholders
$
(102,334
)
 
$
(329,795
)
 
$
(86,061
)
Certain non-cash and other items:
 
 
 
 
 
   Stock-based compensation
1,503

 
1,476

 
822

   Inventory write-downs (Mountain Pass)
27,640

 
26,803

 
15,693

   Impact of purchase accounting on cost of inventory sold
—

 
252

 
577

   Impairment of goodwill and other long-lived assets
—

 
231,356

 
—

   Write-down of investments and related receivables
—

 
22,986

 
—

   Gain on debt conversion
—

 
(21,683
)
 
—

Out-of-ordinary items:
 
 
 
 
 
Water removal costs
3,352

 
551

 
8,102

Income tax effect of above adjustments
(12
)
 
(20,972
)
 
(160
)
Adjusted net loss
(69,851
)
 
(89,026
)
 
(61,027
)
Dividends on Convertible Preferred Stock
—

 
—

 
(2,846
)
Adjusted net loss attributed to common stockholders
$
(69,851
)
 
$
(89,026
)
 
$
(63,873
)
Weighted average common shares outstanding
245,808,011

 
229,960,050

 
221,374,589

Adjusted net loss per share
$
(0.28
)
 
$
(0.39
)
 
$
(0.29
)





OIBDA and Adjusted OIBDA
 
 
 
 
 
 
First Quarter
 
Fourth Quarter
 
First Quarter
Consolidated
2015
 
2014
 
2014
Operating loss
$
(54,901
)
 
$
(301,687
)
 
$
(51,017
)
Depreciation and amortization included in costs of sales
25,280

 
38,174

 
16,147

Depreciation, amortization and accretion
5,573

 
7,327

 
7,201

OIBDA
(24,048
)
 
(256,186
)
 
(27,669
)
 
 
 
 
 
 
Adjusted OIBDA by Segment
 
 
 
 
 
Resources
 
 
 
 
 
OIBDA
$
(34,848
)
 
$
(48,327
)
 
$
(36,445
)
Stock-based compensation
235

 
180

 
234

Inventory write-downs
27,640

 
26,803

 
15,693

Impairment of long-lived assets
—

 
13,567

 
—

Water removal costs
3,352

 
551

 
8,102

Adjusted OIBDA - Resources
$
(3,621
)
 
$
(7,226
)
 
$
(12,416
)
Chemicals and Oxides
 
 
 
 
 
OIBDA
$
5,737

 
$
(214,975
)
 
$
3,299

Stock-based compensation
207

 
223

 
193

Impact of purchase accounting on cost of inventory sold
—

 
252

 
25

Impairment of goodwill and other long-lived assets
—

 
215,567

 
—

Adjusted OIBDA - Chemicals and Oxides
$
5,944

 
$
1,067

 
$
3,517

Magnetic Materials and Alloys
 
 
 
 
 
OIBDA
$
12,247

 
$
13,762

 
$
13,676

Stock-based compensation
165

 
168

 
144

Impact of purchase accounting on cost of inventory sold
—

 
—

 
(45
)
Impairment of long-lived assets
—

 
144

 
—

Adjusted OIBDA - Magnetic Materials and Alloys
$
12,412

 
$
14,074

 
$
13,775

Rare Metals
 
 
 
 
 
OIBDA
$
1,594

 
$
(1,706
)
 
$
(70
)
Stock-based compensation
40

 
28

 
22

Impact of purchase accounting on cost of inventory sold
—

 
—

 
598

Impairment of goodwill and other long-lived assets
—

 
2,077

 
—

Adjusted OIBDA - Rare Metals
1,634

 
399

 
550

Corporate and other
(11,168
)
 
(7,004
)
 
(6,823
)
Eliminations
3,246

 
2,941

 
(1,075
)
Adjusted OIBDA - Consolidated
$
8,447

 
$
4,251

 
$
(2,472
)











ABOUT MOLYCORP
 
Molycorp is the only advanced material manufacturer in the world that both controls a world-class rare earth resource and can produce high-purity, custom engineered rare earth products to meet increasingly demanding customer specifications. A globally integrated manufacturer, the Company produces a wide variety of specialized products from 13 different rare earths (lights and heavies), five rare metals (gallium, indium, rhenium, tantalum and niobium), and the transition metals yttrium and zirconium. With 26 locations across 11 countries, Molycorp also produces rare earth magnetic materials through its Molycorp Magnequench subsidiary, including neodymium-iron-boron ("NdFeB") magnet powders, used to manufacture bonded NdFeB permanent rare earth magnets. Through its joint venture with Daido Steel and the Mitsubishi Corporation, Molycorp manufactures next-generation, sintered NdFeB permanent rare earth magnets. Through its Molycorp Advanced Water Technologies subsidiary, the Company markets and sells its proprietary, cerium-based advanced water purification technology called SorbX® for use in municipal and industrial wastewater treatment, recreational water, and pool and spa water treatment markets. 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 meet the standards necessary to maintain its listing on the New York Stock Exchange or other stock exchange, including its ability to cure any non-compliance with such listing standards; the need to secure additional capital to implement Molycorp's business plans, and Molycorp's ability to successfully secure any such capital, including the ability to successfully access the remaining commitment under the financings with certain funds managed by Oaktree Capital Management, L.P.; Molycorp's ability to make interest payments on its existing debt; Molycorp's ability to repay its debt, whether at maturity, pursuant to any acceleration, or otherwise; Molycorp's ability to optimize and ramp up production at its Mountain Pass rare earth mine and processing facility, which we refer to as the Mountain Pass facility, and the ability to develop internal and external demand for REO and other downstream products, including the ability to operate at commercial production rates and competitive cash production costs, in each case within the projected time frame; Molycorp's  ability to economically produce chemical reagents from waste water at the Mountain Pass facility on a consistent basis; the success of Molycorp's cost mitigation efforts in connection with the optimization and ramp up of the Mountain Pass facility, which, if unsuccessful, might cause its costs to exceed budget; the final costs of Molycorp's planned capital projects, which may differ from estimated costs; Molycorp's ability to achieve fully the strategic and financial objectives related to its acquisitions, including in respect of Molycorp's financial condition and results of operations; risks and uncertainties associated with intangible assets, including any future goodwill impairment charges and the ability to develop and protect intellectual property related to products and operations; risks associated with Molycorp's ability to protect its intellectual property, including the infringement of intellectual property of third parties; market conditions, including prices and demand for Molycorp's products; Molycorp's ability to control its working capital needs; foreign exchange rate fluctuations; the development and commercialization of new products; unexpected actions of domestic and foreign governments; various events which could disrupt operations, including natural events and other risks; uncertainties associated with Molycorp's reserve estimates and non-reserve deposit information, including estimated mine life and annual production; uncertainties related to feasibility studies that provide estimates of expected or anticipated costs, expenditures and economic returns, REO prices, production costs and other expenses for operations, which are subject to fluctuation; uncertainties regarding global supply and demand for rare earths materials; uncertainties regarding the results of Molycorp's exploration programs; Molycorp's ability to enter into definitive agreements with its customers, its ability to supply such customers, and its ability to maintain customer relationships; Molycorp's ability to maintain appropriate relations with unions and employees; Molycorp's ability to attract and retain employees with the necessary experience, skills and training; Molycorp's ability to successfully implement its vertical integration 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; and the outcome of the current stockholder class action litigation and derivative litigation, including any actions taken by government agencies in connection therewith.

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, 2014 and of the Company's Quarterly Reports on Form 10-Q. Any forward-looking statement contained in this release or the Annual Report on Form 10-K or the Quarterly Reports 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.





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