Magnetics Business & Technology - Fall 2012 - (Page 23)

INDUSTRY NEWS China to Stockpile Four of the Five “Rare Earths That Matter” 2012, which both contributed to net sales during Q2 2012. Molycorp’s second quarter GAAP gross loss was $4.1 million during the quarter, compared to gross profit of $56.7 million during the second quarter of 2011. Gross profit decreased substantially from the prior year period as a result of lower product volumes shipped, lower prices, increased production costs and other transaction costs related to acquiring Molycorp Canada. As of August 2, 2012, the Company is re-affirming its annual production of REO equivalent products to be in the range of 8,000 mt to 10,000 mt for the full year across its Mountain Pass, Sillamäe and Tolleson facilities, which does not include production from its newly acquired Molycorp Canada operations. The Company continues to believe it is well positioned for year-overyear sales growth given the Mountain Pass ramp-up, existing customer orders, a growing pipeline of global business opportunities, and its acquisitions. Capital expenditures for Project Phoenix Phase 1 and Phase 2, commissioning and start-up, and other capital projects at our Molycorp Mountain Pass facility are expected to be approximately $289 million on an accrual basis for the remainder of 2012. All other capital expenditures across the Company (including Molycorp Canada) are expected to be approximately $17 million for the remainder of 2012. The US Magnetic Materials Association (USMMA) considers the recent announcement that the Chinese government may support a stockpile of heavy rare earth oxides with interest-free loans as further confirmation of the need for a non-China-dependent, domestic and allied nation rare earth supply chain. These oxides include four of the five rare earth elements classified as critical by renowned industry consultant Jack Lifton of Technology Metals Research: terbium, dysprosium, europium and yttrium. USMMA and its member companies have long expressed their concerns to the US Government about the availability of and dependency on Chinese rare earth elements for national security and energy requirements. USMMA’s member companies are capable of creating a stable and secure supply chain for rare earth components, and we continue to urge the US Government to explore solutions to its ongoing supply chain vulnerability. Molycorp Reports Second Quarter 2012 Financial Results Molycorp, Inc. has released the financial and operating results for the second quarter 2012. “Molycorp continues to make significant progress on our three strategic priorities: completing 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.” “We successfully completed the acquisition of Neo Materials during the quarter, and are now producing a full range of ultra-pure, highly engineered custom materials, including heavy rare earths. Molycorp Magnequench had a record quarter in Q2 2012, selling 1,880 mt of alloy powders. In the brief integration period to date, I continue to be impressed with the knowledge, work ethic, and passion which all of our employees bring to the Molycorp family. I continue to believe the addition of Molycorp Canada better positions the Company through diversification into new geographies and sophisticated end-use markets. Our vertical integration into a comprehensive provider of advanced materials has expanded significantly with the addition of Molycorp Canada.” Net sales for the quarter were $104.6 million, up 5 percent from the second quarter 2011. Molycorp Silmet and Molycorp Metals & Alloys (MMA) were acquired during the second quarter of 2011, and Molycorp Canada was acquired on June 11, www.MagneticsMagazine.com Fall 2012 • Magnetics Business & Technology 23 http://www.eaglabs.com http://www.eaglabs.com http://www.MagneticsMagazine.com

Table of Contents for the Digital Edition of Magnetics Business & Technology - Fall 2012

Magnetics Business & Technology - Fall 2012
Contents
Editor's Choice
Permanent Magnet Motors in Application
Three-Axis Magnetic Field Measurement: From Nanoteslas to 14 Tesla
Characterizing Permanent Magnet Materials with a Vibrating Sample Magnetometer
Research & Development
Magnets • Materials • Measurement
Application • Component Developments
Industry News
Marketplace
Advertising Index
Spontaneous Thoughts: And the Wisdom to Know the Difference

Magnetics Business & Technology - Fall 2012