UPDATE: Euro Pacific Downgrades Molycorp

In a report released Monday, Euro Pacific analyst Luisa Moreno downgrades Molycorp (NYSE: MCP) from Hold to Sell, while reducing its price target from $3 to $2.

Analysts at Euro Pacific view Molycorp as unfavorable due to continuous price decreases in special earth elements and lagging production efficiency in Mountain Pass. The firm noted how Molycorp has decreased its current account, burning through cash by nearly $80 million a quarter trying to stay afloat with its price decreases and trouble in Mountain Pass.

Molycorp average sales prices decreased heavily from 974 tons at $10.3 per kg compared to 1,049 tons at $16.8 per kg in the company's second quarter of 2013.