NEW YORK Rare earths producer Molycorp Inc. expects lower-than-expected revenue and cash flow for 2013 due to the delayed ramp-up of its Mountain Pass mining complex and "the current rare earths pricing environment," the company said Thursday.
Molycorp has now completed all key production components at Mountain Pass and expects the facility to reach its full Phase 1 run rate of 19,050 tonnes of rare earths production annually by midyear, it said.
The full Phase 1 run rate had been expected as early as the third quarter of 2012, the company said previously (amm.com, Feb. 21).
A company spokesman didnt comment on the delay.
Molycorp is also re-evaluating its capital needs for 2013, the company said.
The Greenwood Village, Colo.-based company has most of the equipment on site for a scheduled Phase 2 upgrade that would lead to production of 40,000 tonnes annually, but "the decision to complete construction and start-up wont be made until market demand, product pricing, capital availability and financial returns justify additional increases in production beyond Phase 1," the company said.
Molycorps stock plummeted to $8.40 per share in Thursday afternoon trading on the New York Stock Exchange, down 22.2 percent from its previous days close.