Rare-earth miner Molycorp delays earnings announcement
Molycorp Inc. has delayed the announcement of its fourth-quarter and annual earnings as it calculates a “substantial” balance sheet charge.
The company, which owns the rare-earth mine about 15 miles south of Primm, said it would have to write off at least part of the $505 million of goodwill that it carried on its books at the end of the third quarter. Almost all of that represents the difference between the value of the hard assets of what is now Molycorp Canada and the $1.2 billion purchase price.
A company announcement said it would file its annual report by March 15.
Accounting rules require that goodwill be reduced when the expected earnings generated by an acquisition are projected to fall short of the level needed to support the goodwill value.
In recent months, Molycorp has run into a combination of falling rare-earth prices and cost overruns on its project to upgrade and expand the mine. The CEO also resigned.
The stock closed down 10 cents, or 1.6 percent, on Thursday at $6.14. In trading before market opening, however, the stock hit its all-time low of $5.60.
Contact reporter Tim O’Reiley at
toreiley@reviewjournal.com or 702-387-5290.
