Tuesday, January 4, 2011

With the Stock Up Four-fold Look For Molycorp to Sell More Shares (MCP)

Following up on this morning's Bloomberg story "Pre-Market: Molycorp up 7.5% on Wild Ass Speculation (MCP)"
At current prices it makes more sense to dilute the stock a bit than to jv the deal but hey, that's just me.
"From Bloomberg (who are on top of the story):

Molycorp May Need Extra $200 Million to Boost Output 
Molycorp Inc., owner of the largest rare-earth deposit outside China, said a proposed doubling in production would need as much as $200 million of extra investment, and it may pursue joint ventures to raise the cash.

Molycorp is considering raising the 2012 output target for its Mountain Pass mine in California to 40,000 tons from 20,000 tons. That would add $100 million to $200 million to the project’s estimated $531 million cost, Chief Executive Officer Mark Smith said today in an interview on Bloomberg Television’s Inside Track....MORE