[credit provider=”Wikimedia Commons” url=”http://en.wikipedia.org/wiki/File:Rareearthoxides.jpg”]
Molycorp (MCP) is down 5 per cent in early trading after the company announced that its CEO and president, Mark Smith, was leaving the company.The largest rare-earths producer in the U.S. has undertaken an extensive overhaul of its principal asset, the California Mountain Pass mine, over the course of 2012.
However, the company was forced to raise capital in August due to cost overruns related to the project. Shares are down nearly 53 per cent year-to-date.
In November, Molycorp revealed that it was under investigation by the SEC for alleged inaccuracies in its public disclosures.
Molycorp spokesman Jim Sims told Bloomberg News that Smith’s exit was a mutual decision, and that “the board decided to make a management change because the profile of th company is rapidly changing.” Furthermore, Sims said the departure was not related to the ongoing SEC investigation.