Molycorp is a producer of rare earth metal powders, including molybdenum powder.
Molycorp is a producer of rare earth metal powders, including molybdenum powder.

This increase was reportedly driven by increased volume sales in the company’s magnetic materials and alloys segment, and its rare metals segment.

For the full year, the company sold 13,118 mt of product at an ASP of US$42.26 per kilogram, and generated a gross loss of US$67.2 million. This compares to volume sales of 9,207 mt at an ASP of US$57.00 per kilogram and a gross profit of uS$18.8 million for the full year 2012.

In Q4 2013, Molycorp had consolidated net revenues of US$123.8 million, a 17% decrease over the third quarter of 2013. The decrease in revenues was largely driven by a shifting product mix, with higher sales volumes from its chemicals and oxides segment, offset by softened pricing for rare earths and lower volumes of magnetic powders in its magnetic materials and alloys segment.

Rare earth production

The company recently began commissioning and operational start-up of the Chlor-Alkali plant at its Mountain Pass, California rare earth facility. The plant uses recycled wastewater from Mountain Pass operations to produce chemical reagents used in rare earth production.

"Putting our Chlor-Alkali plant into operation is a major milestone,” said Molycorp president and CEO Geoff Bedford. “Producing our own chemical reagents and reducing our water discharge will lower our costs, and this unit further reduces the environmental footprint of rare earth production at Mountain Pass.”

"It will play a key role in helping us achieve operating break-even cash flow, before interest, this year.”