Molycorp sold 9,223 mt of product across its business segments, net of intercompany sales, at an average sales price, or ASP, of $57.35 per kilogram and generated a gross profit of $17.3 million in 2012, as compared to $218.9 million during the prior year. Gross profit decreased from the prior year as a result of significantly lower pricing and increased production costs, offset in part by increased volumes and the partial-year inclusion of Molycorp Canada.
"The economics of our model of vertical integration on a global basis remain strong,” said Constantine Karayannopoulos, Molycorp president and CEO. “During 2012, we reported strong top-line performance and improved our market share in several areas. We are now sharpening our focus on building greater value for our shareholders.”
Molycorp expects global supply and demand for rare earth oxides to approach a healthier balance during 2013, and pricing within many key applications of rare earths will be beneficial to both customers and suppliers. The company also believes 2013 demand will be relatively robust in the automotive catalysts, fluid cracking catalysts, and the automotive and small battery sectors, while weaker or negative near-term growth is forecast in the multi-layer ceramic capacitor, glass polishing, and neodymium-iron-boron (NdFeB) magnet sectors.
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