Apollo and TPG join MolyCorp race, page-5

What ARI could do is hive off Moly-Cop via a partial US float.
See you don't need UBS or Lazard.

Yes Moly-Cop has good financials and a Coca-Cola industry position.
That is why there are so many buyers out there.Not to add of course the value of their harder SAG ball and its protection against copying in the Western world,which is probably worth more than the total business is over the next 10 years.

Easy enough to place 30-40% of Moly-Cop on the market and do what all the others will ultimately do anyway without allowing them the profit they seek.
Just think back not far to Steel and Tube and the wealth it created for similar teams.

Already Canadian debt is tied to Moly-Cops potential and so is most of the American debt,in reality.
It is separating that from ARI's overall performance that is the problem.

That would leave ARI in control and with the potential to clean up minorities in the future or to sell on market to maximise future shareholder value which is the latest company catch phrase.

Yip sell 40% on market and collect $ 9-950m retail and use that to drop Ausse debt,with the rest of the US and Canadian debt transferred to Moly-Cop.
Not so hard to do,given Moly-Cops staggering rise in earnings -23% excluding Ropes last year,+new product with increased margins and 600kt of demand ahead of it,just in Sth America over a few years.
These fundies will only price gouge Moly-Cops customers while they can and they can for a few years before they sell out based on new profit assumptions,until competitors can finally up supply to meet demand.

Even then those customers will be buying cheap Cola versus Coke.

Time for Moly-Cop to have a frank discussion with its customers and discuss the future they may see versus allowing Moly-Cop better margins upfront under ARI's ownership.

Now me if I was such a customer I would consider paying 10% more for 3yrs if I would also receive a 10% discount for the same quantity of media in the future for 4yrs to help ARI and Moly-Cop out and Myself of course.
With a provisor of course that any change of ownership would result in greater pre-arranged discounts.
Even better offer pre - payment for media,like FMG does for ore,for those companies that are cash rich and would like costs even lower,like a few Goldies I could think of with cash in the bank earning nothing.
Now they would be happy to be earning 4% and a guaranteed preference for supply over their competitors.

DYOR + DYODD