TORONTO (miningweekly.com) – US rare earths producer Molycorp’s NYSE-listed stock on Wednesday slid more than 19% in after-market trading following the publication of disappointing third-quarter results.

Greenwood Village, Colorado-based Molycorp reported a net loss of $105.2-million, or $0.47 a share, for the three months ended September 30, 9% more year-on-year from a loss of $70-million, or $0.43 a share, in the comparable period in 2013.

Excluding special items, Molycorp reported an adjusted net loss of $0.40 a share, significantly more than the $0.27 loss a share that Wall Street analysts had expected.

Revenue for the period declined 17% over the comparable period last year to $123.9-million, marginally beating analyst expectations of $123.7-million.

Rare earths producers such as Molycorp and Australia's Lynas had been weighed down by concerns about how fast they were burning through cash, low prices and the possibility that they might need to issue shares to raise more funds.

Molycorp was still busy ramping up operations at its flagship Mountain Pass mine and plant, in California, which it upgraded as part of a push to improve its competitiveness. However, the company had now for more than two consecutive years failed to report a profit.

The rare earths industry is in a state of consolidation after a Chinese export clampdown prompted a rapid spike in prices in 2010/11. However, the global economic crisis and a flood of new supplies resulted in the subsequent collapse of prices in 2013. Prices had now stabilised and were expected to remain so in the long term.

Molycorp said its resources segment, comprising the Mountain Pass operations, sold 1 085 t of rare earth oxide (REO) equivalent products for $13.9-million during the third quarter, a 3% increase over the comparable period last year. The average sales price (ASP) of $12.84/kg was 2.6% higher year-over-year, owing to a more favourable product mix, the miner highlighted.

Further, production volumes for the quarter were 691 t, a 58% decrease over second-quarter output of 1 639 t. Cash cost for production increased to $33.80/kg, a 104% increase over production cash costs of $16.54/kg in the previous quarter, largely owing to the limited availability of hydrochloric acid needed for production, Molycorp explained.

The company's chemicals and oxides segment sold 1 651 t and reported $43.5-million in revenues for the period under review. The lower ASP of $26.33/kg offset the slight sequential increase in volume, owing to a less favourable product mix.

The company’s magnetic materials and alloys segment sold 1 516 t of magnetic powders, reporting third-quarter revenues of $62.7-million on an ASP of $40.42/kg. This compared with second-quarter revenues of $54.4-million on an ASP of $39.31/kg for the segment.

Further, Molycorp's rare metals segment reported a sales volume of 104 t on revenues of $21.3-million. The ASP for the segment was $204.51/kg, which compared favourably with second-quarter revenues of $15.9-million on an ASP of $201.81/kg.

The rare earths producer's stock was down 19.15% at $1.14 in extended trading, having shed 72.21% in value over the past 12 months.