Molycorp sold 3,274 mt of product at an ASP of US$44.71 per kilogram and generated a gross loss of US$20.5 million during the quarter, as compared to a gross loss US$20.5 million during the fourth quarter of 2012. During the first quarter, Molycorp's cash capital expenditures were US$181.1 million. For the remainder of 2013, Molycorp estimates that its cash capital expenditures will total approximately US$250 million. Approximately US$80 million of additional cash capital expenditures related to the Molycorp Mountain Pass facility modernization and expansion project are anticipated to be incurred in 2014.
Molycorp also expects its financial performance for the first half of 2013 to be weaker than the second half of 2012. This is due to typical seasonality resulting in slow rare earth sales in the first quarter, combined with the expectation that its Molycorp Mountain Pass facility will not achieve full-scale commercial production until mid-year 2013.
“Our ongoing production ramp-up at Mountain Pass remains on course, and our increasing production is allowing us to produce for end-use customers as well as provide greater feedstock to our downstream, value-added processing facilities,” said Constantine Karayannopoulos, Molycorp's president and CEO. “On the demand side, we are beginning to see signs of a return to more normal levels of demand as the year progresses.”
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