Gabelli & Company Reports on Molycorp (MCP)

Gabelli & Company commented on Molycorp MCP in a report released earlier today. In the report, Gabelli was mixed on its assessment of the company. Gabelli writes, “Company reiterated that it is on schedule and within budget on its Project Phoenix planned expansion and modernization plan. MCP is now in the due diligence phase with Sumitomo regarding the $130mm loan which is expected to close some time in Q3 2011. After the Company's recent Mandatory Convertible Preffered capital raise in February, and assuming funding from the Sumitomo deal, Molycorp has $100mm in remaining capital requirements which the Company intends to source in 2011 either through a loan from the Department of Energy or alternative forms of debt/project financing.” Gabelli & Company presently has a Hold rating on Molycorp. Shares of the company closed the trading day at $66.47, down from the opening price of $69.54.