Molycorp, the largest U.S.-based rare earths miner, reported a second-quarter profit of $43.5 million, or 52 cents a share, compared with a year-ago loss of $23.3 million, or 47 cents a share, easily trumping Wall Street expectations. The results were reported after the close of U.S. markets today.
Analysts were expecting a profit of 40 cents a share. Molycorp said its second-quarter revenue surged to $99.6 million from $1.9 million in the second quarter of 2010. Revenue from the company's Mountain Pass, Calif. rare earths facility jumped 130% sequentially to $60.3 million, the company said in a statement.
Colorado-based Molycorp (MCP) said Mountain Pass realized an average sales price of $72.80 per kilogram compared to an average sales price of $37.73 per kilogram in the first quarter. ''Global demand for rare earths remains very high, and supply outside of China continues to be tight, as China continues to reduce its net REO export quotas,'' Molycorp CEO Mark Smith said in the statement.
Molycorp forecast third-quarter rare earths production of 1,428-1,890 tons and fourth-quarter production of 1,468-1,946 tons. After gaining over 5% in regular trading, shares of Molycorp were higher by nearly 7.6% in the after-hours session.