Will Molycorp Inc (NYSE:MCP)’s plant completion change its fortunes?
On 2 October, Molycorp Inc (NYSE:MCP) announced that its Mountain Pass, CA chloralkali plant has now been mechanically-completed and that its full scale commissioning-operations have begun. This plant is a water recycling plant that will produce caustic soda and hydrochloric acid.
The two units
This will be used as a segment of the rare-earth separations process. Officials from the company said that once the plant moves into full operation and optimization mode the facility’s cash-production cost targets will be achieved. Molycorp Inc (NYSE:MCP) believes that this will set it on level with other low-cost producers across the world.
Molycorp Inc (NYSE:MCP) has also confirmed that the Mountain Pass multi-stage cracking plant’s final unit is also complete and is in the process of being commissioned. This is as segment of the multi stage chemical-process that has been designed to raise the current rare-earth recovery rates that the facility has. It will also help in increasing the company’s production throughput and bring down its production costs.
Wednesday’s trading session
In Wednesday’s trading, Molycorp Inc (NYSE:MCP) rose by 10.51%. The shares opened at a price of $7.10, which rose to an intraday high of 7.59, and dipped to a close of $7.36. Approximately 18.98 million shares were traded on Wednesday while an average volume of 5.37 million shares were traded over a 30 day period. The 52-week low of the company’s shares is $4.70 and its 52-week high is $11.89. The company has a market capitalization of $1.39 billion.
About the company
Molycorp Inc (NYSE:MCP) is a rare-earth oxide (REO) producer that operates in the Western hemisphere. It owns various developed rare-earth projects outside China. It also owns a rare-earth oxide and rare-metal producer in Europe. Molycorp Inc (NYSE:MCP) produces rare-earth alloys in the U.S. It has 3 business segments: 1) Molycorp Mountain Pass, 2) Molycorp Tolleson and 3) Molycorp Sillamae