The mining company announced it had secured the financing from Oaktree Capital Management, which will provide the money in secure financing through credit facilities, as well as the sale and leaseback of some equipment at Molycorp's Mountain Pass facility.
For the second quarter, Molycorp reported a loss of 29 cents a share, slightly wider than the consensus estimate of 28 cents a share. Revenue dropped 14.5% year-over-year to $116.9 million, short of analysts' expectation $130.97 million.
The stock was up 5.64% to $2.15 at 12:15 p.m. More than 9.8 million shares had changed hands, compared to the average volume of 6,161,650.
Separately, TheStreet Ratings team rates MOLYCORP INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate MOLYCORP INC (MCP) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk."
You can view the full analysis from the report here: MCP Ratings Report
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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.