Teresa Matich reports that Molycorp has caused some excitement with the release of the company Q4 production results for its Mountain Pass operation in California. Molycorp reported on Monday that production increased from 1,034 metric tons of rare earth oxide -REO- equivalent in the fourth quarter of 2013 to 1,328 MT for 2014.
Molycorp CEO Geoff Bedford said in a statement released recently that in comparison to the previous quarter of 2014, production at Mountain Pass nearly doubled. For the full year, production was up by over 1,300 MT. He indicated that they were pleased to see our production increase in the fourth quarter relative to the preceding quarter and year-on-year. Optimization at Mountain Pass is ongoing, but their Q4 production demonstrates momentum in the right direction. Trading volumes were still up at about five times the daily average on Tuesday as investors continued to show interest in the company.
To be sure, shares of Molycorp have taken a beating as of late. Despite gaining about 44 cents over the past five days, the company share price has still fallen by more than 80 percent to lose about 4 dollars over the past year. And although Mountain Pass has clearly started to ramp up production, the project had its fair share of delays along the way. Still, with the company being one of the few rare earths producers outside of China, those interested in the critical metals sector still seem to be following the Molycorp story. Certainly, following rumors of bankruptcy and of the company delisting from the New York Stock Exchange, Monday news was a welcome change for Molycorp diehards.
In terms of what is next, the company said that repairs regarding construction-related issues are still ongoing at the new, expanded leach system at Mountain Pass. The new system is intended to increase production and reduce operating costs once it is in full working order.
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