(MENAFN- ProactiveInvestors)
() one of the few rare earths producers outside of China is deeper in the red after reporting its 12th quarterly net loss in a row prompting its shareholders and industry peers to wonder whether the company will be able to survive.
Both quarterly and yearly losses proved to be worse than the most pessimistic analyst expectations.
posted fourth quarter revenues of US$116.2 million a 6 percent decrease from the third quarter of 2014. The decrease in revenues was attributed to a shifting product mix and lower sales volumes from all segments accounting for a net loss of US$329 million or US$1.43 per share.
For the year the company reported net revenues of $475.6 million 14 percent lower than the previous year and losses attributable to shareholders of US$670 million or US$2.70 per share.
was trading at 50 cents per share on Tuesday down almost 33 percent. Shares fell 14 percent in premarket trades after 's auditor sounded an alarm about the miner's ability to survive noting a "going concern."
has been a highly volatile stock but investors had reason to hope for better news last month following an announcement of increased production in the fourth quarter at its Mountain Pass mine in California.
Yet with the latest financials many investors will wonder whether or not will continue to be listed on the New York Stock Exchange (NYSE) because it is trading below the required US$1 per share threshold.
Last summer secured funding to the tune of US$400 million from Oaktree Capital Management of Los Angeles which must clearly have been unfazed by concerns surrounding the company's high cash burn rate.
As shareholders wonder where ’s shares are heading investors will sadly recall that in 2011 the company was trading at US$70 per share.
’s die-hard fans are betting on a resumption of demand for cerium and lanthanum. Lanthanum is very useful in alloys used to make superconductors and the industrial field of superconductivity is one of the technologies that is sure to grow in the next decade. In the 1960s and 70s lanthanum and cerium drove the demand for rare earths as they were used to make phosphors used in color TVs.
remains the only active rare earth project in North America but the market has not (yet anyway) shown sufficient demand for its product mix.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.