The company acquired Molycorp Silmet and Molycorp Metals & Alloys (MMA) during the second quarter of 2011, and Molycorp Canada (previously Neo Materials) was acquired on June 11, 2012, which both contributed to net sales during Q2 2012.
After closing its acquisition of Neo Materials Molycorp now produces rare earth magnetic materials as well products from 13 different rare earths (lights and heavies), five rare metals (gallium, indium, rhenium, tantalum, and niobium), and the transition metals yttrium and zirconium.
Molycorp's newly acquired product line of bonded magnet alloy powders, produced by Molycorp Magnequench, produced 1,880 metric tons of alloy powders sold at an average sales price of US$50.2/kg.
"Molycorp continues to make significant progress on our three strategic priorities: completing [expansion of Mountain Pass, California rare earth facility] Project Phoenix, commercializing XSORBX, and integrating Neo Materials (now known as Molycorp Canada) into Molycorp," said Mark Smith, president and CEO. "Our phased start-up of Project Phoenix Phase 1 is in full-swing, and we are on target to meet our accelerated schedule of achieving the Phase 1 production rate of 19,050 metric tons in Q4."
On the whole, Smith says rare earth oxides pricing has flattened, although the floor remains soft in certain Japanese supply chains. “We believe that these supply chains will continue to de-stock over the second half of 2012," he said. "The longer-term supply and demand picture remains tight as Chinese regulations increase and the industry continues to consolidate within China. Molycorp remains well positioned to fulfill the demand gap as it brings reliable supply online from Project Phoenix.[...] Design engineers should not worry any longer about uncertainty of supply."