Rare earth producer Molycorp Inc. (NYSE: MCP) reported an increased loss in 3Q10.
The company, which is spending heavily to restart its mine in Mountain Pass, California lost $10.1 million ($0.14 per share) in 3Q10, compared with $6.9 million ($0.18 per share) a year ago.
The company held an initial public offering in July, boosting the number of outstanding shares.
Share prices have more than doubled since the July debut at $14 per share. This has been driven by concerns about the availability of rare earths for electronics and cleantech products. China holds nearly a complete monopoly on the rare earth industry, and the country has begun reducing export quantities to meet growing demand within its domestic market.
Molycorp shares fell about 4.5% to $31.70, following the release of the earnigs report, according to Reuters.
Revenue for the quarter quadrupled to $8.4 million, up from $2 million, as selling prices have increased steeply.
For 4Q10, the Molycorp said it anticipates that China-based producers and suppliers will continue to limit the quantity of rare earth oxides available outside of China. Export quotas for 2010 are close to being exhausted for the year, and are not expected to be relaxed.
While the rare earth products currently produced by Molycorp remain limited by the capability of existing production facilities, the company anticipates further expanding products and markets throughout the remainder of this year and in 2011. However, the company gave no financial guidance, due to pricing volatility.
Molycorp said it expects to spend about $500 million over the next two years to get its mine running at full capacity.
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