Molycorp Inc.: Reports First Quarter 2015 Financial Results
07.05.2015 | GlobeNewswire
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.
REENWOOD VILLAGE, 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.
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
| Magnetic | Total | ||||||
| Chemicals | Materials | Corporate | Molycorp, | ||||
| Three months ended March 31, 2015 | Resources | and Oxides | and Alloys | Rare Metals | and other | Eliminations | 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) | ||||||
| Magnetic | Total | ||||||
| Chemicals | Materials | Corporate | Molycorp, | ||||
| Quarter ended December 31, 2014 | Resources | and Oxides | and Alloys | Rare Metals | and other | Eliminations | 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) | ||||||
| Magnetic | Total | ||||||
| Chemicals | Materials | Corporate | Molycorp, | ||||
| Three months ended March 31, 2014 | Resources | and Oxides | and Alloys | Rare Metals | and other | Eliminations | 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.
FOR MORE INFORMATION:
Molycorp Inc.
Company Contacts:
Jim Sims, Vice President Corporate Communications
+1 (303) 843-8062
jim.sims@molycorp.com
Brian Blackman, Vice President Investor Relations
+1 (303) 843-8067
brian.blackman@molycorp.com