Is Molycorp Inc (MCP) Ready to Run? What About Rare-Earth Metals?

One of the drivers of increased demand, according to Karayannopoulos, is improved control by the Chinese government over illegal production, smuggling and environmental practices: “The progress that China is making in this area should help deliver greater stability and predictability to markets which is good for the industry as a whole.” This greater stability may have led to a slight uptick in prices recently.

Ultimately, Molycorp Inc (NYSE:MCP) looks to be well positioned on a number of fronts and at a sufficiently depressed level to warrant acquiring some shares. The stock remains a speculative play, but with China helping to stabilize the market, demand for finished products that require rare-earth inputs – specifically autos – increasing, and the Mountain Pass mine marching toward completion essentially on budget, there is plenty of upside in the stock. On a risk-adjusted basis, Molycorp looks attractive and could deserve a spot in your portfolio.

The article Are Molycorp and Rare-Earth Metals Ready to Run? originally appeared on Fool.com and is written by Doug Ehrman.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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