The decline in revenues was primarily attributable to lower product volumes and slightly lower ASPs, Molycorp says.

However, in Molycorp's magnetic materials and alloys segment, the volume of Magnequench bonded Neo Powders and other alloys increased 21% from the first quarter, and realized pricing increased 3% to drive revenues to US$66.1 million, a 21% increase over the same period.

During the six months ended June 30, 2013, Molycorp's capital expenditures were US$264.7 million on a cash basis. For the remainder of 2013, the Company estimates that its capital expenditures will total approximately US$167 million.

The company’s Mountain Pass facility demonstrated an operating capacity in excess of 15,000 mt per year of rare earth oxide equivalent, making it one of the largest operating rare earth processing facilities in the world.

"We are seeing increasingly bullish signals from customers across several segments for product demand, and increased demand will coincide nicely with increased production capacity at Mountain Pass and declining production costs,” said Constantine Karayannopoulos, president and CEO. “As we continue to optimise operations at Mountain Pass [...] we should be ready to adjust production to meet customer demand and be price competitive with any rare earth producer in the world.”