Tomahawk, WI 06/16/2014 (Basicsmedia) – Molycorp Inc (NYSE:MCP), a producer and distributor of rare earth materials across the globe, has ended its trade on Friday, June 13, on an optimistic note. The index price of MCP has nearly dropped to as low as 96.2%, in contrast to its zenith in 2011.

Perhaps the iota of optimism in MCP’s fair share price rise is the direct result of the conviction shown by Regis Philbin (a sometime host of the popular television show – Who Wants To Be A Millionaire) in a CNBC-interview.

Reaching The Zenith

Four years ago, rumors of vindication were rife that China had really cornered the US in the realm of rare-earth elements, which are major contributors to the operability of missiles, wind turbines and hybrid cars. At that juncture, prices had soared up in the US.

Back then, the owner of many a mine, MCP spent with great impetus on ameliorating the robustness of its arsenal; the company had spent close to $1.6 billion to expand a mine located an hour away, in the western direction of Las Vegas. Invariably, MCP garnered great momentum as its stock price surged five folds in a few months’ time, after MCP evolved into a public organization in July 2010.

Philbin’s Conviction

Since then, Regis Philbin has been interested in Molycorp Inc (NYSE:MCP)’s shares like many other nonentities. However, over the years scenarios have changed, worsened. Production of rare earth materials across the world is dropping as demands are waning. A US geological survey revealed that in 2010, 133,000 metric tons of rare earths had been produced, which dropped to 110,000 metric tons in 2013. Apart from this, there had been grievances and bottlenecks.

Price Cut Agenda

MCP announced a whopping loss of $89 million on estimated sales of around $119 million in Q1-2014. The company’s debt is on the rise, owing to dwindling demand and slackened profits. Other companies like the Kinross Gold Corporation (USA) (NYSE:KGC)’s African employees are getting their Nespresso deliverance scrapped, whereas Rio Tinto plc (ADR) (NYSE:RIO)’s Australian employees are being forced lesser quantities of meat pies, to cut down upon costs.

Struggles Continue, Demand-drops Worry

As struggles continue, and demands switch away slowly, analysts feel that relying much on having Philbin-like-feelings can hurt investors’ sentiments. However, ending on a positive note, despite having cynic eyes and deepened scowls, it’s tough to call off Molycorp Inc (NYSE:MCP), considering the stature it has!

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