Molycorp shares drop 3% upon sudden exit of CEO
Shares of Molycorp fell 34 cents, or 3 percent, on Wednesday to close at $10.99 a day after the company chief executive left without explanation.
A company statement Tuesday said Constantine Karayannopoulos, an engineer who sits as vice chairman of the Molycorp board, has become CEO on an interim basis. Karayannopoulos spent seven years as CEO of Neo Material Technologies, until it was acquired by Molycorp this year.
Karayannopoulos replaces former CEO Mark Smith, who restored operations at the Molycorp rare-earths mine just south of Primm.
This year, the project to revive and upgrade the facilities at the mine ran into cost overruns, forcing the company to raise more money. In addition, the company disclosed in its third-quarter report that the Securities and Exchange Commission was investigating the company's public disclosures to investors. Although the price has nearly doubled from the all-time low of $5.75 when the SEC action was announced in November, it has dropped by more than 80 percent in less than two years. Shares trade on the New York Stock Exchange.
Contact reporter Tim O'Reiley at
toreiley@reviewjournal.com or 702-387-5290.
