Molycorp Inc (MCP) Reports 13th Consecutive Quarterly Loss

On Thursday, Molycorp Inc (NYSE:MCP) reported its result for the first quarter of fiscal’15 (1QFY15, ended March 31, 2015) before the opening bell in New York. The Colorado-based company’s stock price is down more than 18% in the early minutes of trading on the New York Stock Exchange (NYSE), after the company reported higher losses.

During the three-month period, the company’s revenue declined 10.2% year-over-year (YoY) to $106.4 million, and underperformed $104 million consensus estimate. The company has now beaten revenue estimates for the past three consecutive quarters. The revenue decline can be attributed to 8% YoY decline in Average Selling Price (ASP) to $30.97 per kilogram (kg).

The rare earth metal producing company reported $102.3 million net loss, as opposed to $86.1 million during same period last year. Meanwhile, Street analysts anticipated the company to report net loss of $45 million. After excluding one-time item, the company reported adjusted Loss per Share (LPS) of $0.28, as opposed to $0.29 during same period last year. Adjusted LPS was $0.11, higher than $0.18 consensus estimate. The company has missed adjusted LPS estimates for the past six consecutive quarters now.

Furthermore, the company revealed that it finished the quarter with a $133.6 million cash balance, as opposed to $211.7 million at the end of fourth quarter last year. Going forward, the company has debt repayment commitment of $207 million in 2016, and $389 million in 2017. During the first quarter, Molycorp reported Cash Flow from Operations (CFO) deficit of $73 million.

Earlier this week on Monday, Bloomberg reported that the company is pondering over a proposal from its senior creditors that could result in some of the company bonds being converted into equity. The company carried total debt of $1.6 billion at the end of the first quarter.

The company’s shares closed at $0.67 yesterday on the NYSE, as opposed to $4.56 a year ago. This signifies a decline of 85.3% in the Last Twelve Months (LTM).

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