Molycorp, Inc. has announced financial and operating results for the fourth quarter and full year 2014.
FOURTH QUARTER 2014 RESULTS
The Company reported consolidated net revenues of $116.2 million, a 6% decrease over the third quarter of 2014. The decrease in revenues was largely driven by a shifting product mix, lower sales volumes from all segments, except for Rare Metals', and softened pricing for rare earths.
During the fourth quarter, the Company sold 3,149 mt of product at an ASP of $36.91 per kilogram, and generated a gross loss of $44.8 million. This compares to sales volumes of 3,356 mt at an ASP of $36.93 per kilogram and a gross loss of $15.1 million during the third quarter of 2014. The Company produced 691 mt and 1,328 mt of rare earth oxides at its Mountain Pass facility during the third and fourth quarters of 2014, respectively. Actual production was lower than expected as a result of production interruptions while the Company continues to optimize operations, and this lower than expected production has continued through the first two months of 2015.
Molycorp reported a loss attributable to common stockholders of $329.8 million, or $1.43 per share. Adjusted loss per share of $0.39 in the fourth quarter of 2014 does not reflect impairment charges for goodwill and other intangible assets, out-of-ordinary business expenses, and certain other non-cash items.
The Company reported negative cash flows from operating activities of $75.8 million during the fourth quarter, and had $211.7 million in cash and cash equivalents as of December 31, 2014.
During the three months ended December 31, 2014, Molycorp's capital expenditures were $23.3 million on a cash basis.
FULL YEAR 2014 RESULTS
The Company reported consolidated net revenues of $475.6 million, a 14% decrease as compared to the full year 2013. The decrease in revenues was largely driven by softened rare earth pricing.
For the full year, the Company sold 13,019 mt of product at an ASP of $36.53 per kilogram, and generated a gross loss of $99.6 million. This compares to volume sales of 12,873 mt at an ASP of $43.07 per kilogram and a gross loss of $67.2 million for the full year 2013.
Molycorp reported a full year loss attributable to common stockholders of $607.8 million, or $2.70 per share. Adjusted loss per share of $1.31 for the full year 2014 eliminates the effect of operational expansion items, out-of-ordinary business expenses, and certain other non-cash items.
The Company reported negative cash flows from operating activities of $222.2 million during the year. Capital expenditures for the Company on a cash basis for the full year were $86.2 million. For the full year ending December 31, 2015, the Company estimates that its capital expenditures will total approximately $60-$65 million.
