Du är här

2015-09-17

MTL Index: Index The bankruptcy of Molycorp strengthens rare earth storage needs according to MTL

Last August 26, the US Company Molycorp announced the closure of its rare
earth mine in Mountain Pass. This decision follows the announcement of the
bankruptcy of the company in June. Management has announced that it may
restart its mine based on "market conditions and other factors that are
difficult to predict." This is a blow to the developed countries that relied
on this source of rare earths to reduce the Chinese monopoly on global
production.
After a reduction of export quotas decided by Beijing which had increased the
prices of some metals by about 20 Mountain Pass reopened in 2010, the US
Government, wishing to strengthen its independence and protect its mining
industry of rising prices, had supported Molycorp to open its mine closed 10
years ago.

Producer of the less strategic rare earths, Molycorp has suffered very quickly
from the market downturn in 2012. The market cap of the company has lost 86%
of its value in four years and it now displays a debt of 1.7 billion dollars.
The closure of its mine puts developed countries in a situation of stronger
dependency on China, even as these metals are increasingly essential to the
industry of energy and defense in Europe. This closure makes more necessary
than ever the constitution of rare earth stocks in Europe and the United
States.MTL Index
aims to be a major player in this storage policy.

MTL Index
offers since 2013, to individuals who want to diversify their savings, to
invest in strategic metals lots. The company has supported nearly 1,500
clients in their investments; this activity allowed the formation of large
stocks of rare earths, currently stored in Germany and Switzerland. In case
of new strategic metals shortages, these stocks will cushion the financial
shock that would represent a new price surge.

---------------------------------------

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: MTL Index via Globenewswire

HUG#1952396

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.