Molycorp Inc.’s (NYSE:MCP) financial report for the fourth quarter was made public after the closure of trading session on Monday. Its generated revenue amounted to $116.2 million and the company has to go through a loss of $0.39 per share on this revenue. On the other hand, the estimate set forth by Thomas Reuters delineated a figure of $104 million as the gross revenue of the company in the fourth quarter with a loss of $0.26 per share.
The results obviously do not paint a very bright future for the company. Rather there are speculations based on the company’s present performance that it would miss its mark of $1 and consequently would be stripped off the list of New York Stock Exchange (NYSE).
The NYSE rules assert that the company will be provided with an improvement period of six months. This time span will start being counted from the day of issuance of NYSE’s notice to the company. The company is supposed to hit its mark of $1 in this period. Meanwhile, the company’s stock would continue being traded on NYSE platform in compliance to its regulations. The company is supposed to inform NYSE whether it seeks to cure its deficiency or not.
This may be a point of concern for the company, but a glimpse at the entire picture will reveal that this isn’t the only concern for the company; rather it has many other woes on its plate as well. It has continually been badgered with weak earnings. Last year, the company also had to suffer a net loss of $0.28 per share, while its gross revenue for the fourth quarter was $123.81 million.
A look at the statistics of previous years acquaints us with the gradual decrease in the company’s stock.
The earnings report of the company for its fourth quarter doesn’t sound that promising. It had to go through a negative cash flow of almost $75.8 million. This negative cash flow was accompanied with capital expenses amounting to $23.3 billion. The company’s cash hoard comprised of $211.7 million by the end of the year 2014. This included both absolute cash and cash equivalents.
The Mountain Pass, Calif., was responsible for the production of nearly 1, 328 metric tons of rare earth oxide. However, in the same period, in the previous year; it produced almost 691 metric tons. Whereas in the fourth quarter of the year 2013, it managed a production of 1,034 metric tons. The fourth quarter financial reports reflected a sales volume of 3,149 metric tons. The third quarter witnessed a decrease in this, amounting to approximately 6%. The average price on which it was sold was $36.91 on every kilogram.
The opening of Tuesday’s market hours wasn’t really encouraging, with shares going down to almost a third of $0.49. The consensus analysts put forward an estimate of $1.85 as the price target. The trading range is expected to comprise of 52 weeks with the price ranging from $0.28 to $5.22.
