Project out or Forecast Molycorp's financials from 2012 to 2017 and determine its funding needs from 2012
Fantastic news! We've Found the answer you've been seeking!
Question:
Project out or Forecast Molycorp's financials from 2012 to 2017 and determine its funding needs from 2012 to 2017 with the help of following exhibits.
Transcribed Image Text:
Exhibit 9 Molycorp Cash Flow Forecast (millions of dollars) Operating Assumptions REO Production (tons, thousands) Percentage of REO allocated to Metals Production Metals production (tons, thousands) REO Price ($/kg) Metal/Alloy Price ($/kg) REO Cost ($/kg) Metal/Alloy Cost (S/kg) Revenue REO Metals/Alloys Total Revenue Cost of Sales REO Metals/Alloys Total Cost of Sales Gross Profit REO Metals/Alloys Total Grass Profit SG&A Other Expense EBITDA Cash Flow Items Capital Expenditures Depreciation Net Working Capital (1) Gross Margin Revenue Growth (2) July-Dec 2012 $ 6.0 63% 3.8 43.2 104.7 26.1 82.1 58 309 367 ****** 334 25 301 Fiscal Year Ending December 31st 2014 2015 2016 25.1% 2013 25.0 32% 80 20.6 58.1 9.3 34.4 158 275 433 192 190 40.0 40.0 40.0 35% 35% 14.0 14.0 815 1,382 273 19.2 63.1 6.0 37.4 70 125 258 97 $ 350 $ 499 $ 506 $513 $520 394 465 908 920 490 1,421 1,441 156 5.23 679 382 703 100 100 9 343 360 883 895 98 35% 593 14.0 45 125 289 19.5 63.9 6.1 37.9 *** *** **** 19.7 64.8 6.2 38.4 45 125 293 160 538 696 353 370 723 103 10 610 45 125 297 46.9% 50.9% 50.9% 50.9% 20.0% 69.6% 1.4% 1.4% 2017 Sources: "Molycorp, Inc.," P. Misra and P. Sood (Morgan Stanley, 8/13/2012); "Molycorp," M. Gambardella, T. Langton, and B. Ossenbeck (J.P. Morgan, 8/3/2012); and casewriter estimates. 40.0 35% 14.0 20.0 65.7 6.3 38.9 163 545 708 358 375 733 104 10 618 45 125 301 50.9% 1.4% Note: (1) Net Working Capital Accounts Receivable + Inventory-Accounts Payable-Accrued Expenses. Values are end of period. (2) FY 2013 revenue growth rate based on annual FY 2012 revenues of $679 million. Exhibit 9 Molycorp Cash Flow Forecast (millions of dollars) Operating Assumptions REO Production (tons, thousands) Percentage of REO allocated to Metals Production Metals production (tons, thousands) REO Price ($/kg) Metal/Alloy Price ($/kg) REO Cost ($/kg) Metal/Alloy Cost (S/kg) Revenue REO Metals/Alloys Total Revenue Cost of Sales REO Metals/Alloys Total Cost of Sales Gross Profit REO Metals/Alloys Total Grass Profit SG&A Other Expense EBITDA Cash Flow Items Capital Expenditures Depreciation Net Working Capital (1) Gross Margin Revenue Growth (2) July-Dec 2012 $ 6.0 63% 3.8 43.2 104.7 26.1 82.1 58 309 367 ****** 334 25 301 Fiscal Year Ending December 31st 2014 2015 2016 25.1% 2013 25.0 32% 80 20.6 58.1 9.3 34.4 158 275 433 192 190 40.0 40.0 40.0 35% 35% 14.0 14.0 815 1,382 273 19.2 63.1 6.0 37.4 70 125 258 97 $ 350 $ 499 $ 506 $513 $520 394 465 908 920 490 1,421 1,441 156 5.23 679 382 703 100 100 9 343 360 883 895 98 35% 593 14.0 45 125 289 19.5 63.9 6.1 37.9 *** *** **** 19.7 64.8 6.2 38.4 45 125 293 160 538 696 353 370 723 103 10 610 45 125 297 46.9% 50.9% 50.9% 50.9% 20.0% 69.6% 1.4% 1.4% 2017 Sources: "Molycorp, Inc.," P. Misra and P. Sood (Morgan Stanley, 8/13/2012); "Molycorp," M. Gambardella, T. Langton, and B. Ossenbeck (J.P. Morgan, 8/3/2012); and casewriter estimates. 40.0 35% 14.0 20.0 65.7 6.3 38.9 163 545 708 358 375 733 104 10 618 45 125 301 50.9% 1.4% Note: (1) Net Working Capital Accounts Receivable + Inventory-Accounts Payable-Accrued Expenses. Values are end of period. (2) FY 2013 revenue growth rate based on annual FY 2012 revenues of $679 million.
Expert Answer:
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
Students also viewed these accounting questions
-
The Fitness Studio, Inc., with the help of its investment bank, recently issued $43.125 million of new debt. The offer price (and face value) on the debt was $1,000 per bond and the underwriters...
-
The Fitness Studio, Inc., with the help of its investment bank, recently issued 2.5 million shares of new stock. The offer price on the stock was $20.50 per share and The Fitness Studio received a...
-
With the help of your instructor, identify a particular information system that is not working very well and perform a preliminary investigation of it. In your work, be sure to talk to (1) At least...
-
The Wall Street Journal Corporate Perceptions Study 2011 surveyed readers and asked how each rated the quality of management and the reputation of the company for over 250 worldwide corporations....
-
Refer to Practice 15-12. Assume that the lease is accounted for as a direct financing lease instead of as an operating lease. The interest rate implicit in the lease is 15%. Make the journal entries...
-
Describe the two main functions of an Internet Service Provider (ISP). How do they differ from Applications Service Providers?
-
\(-10>-3\) Determine if the comparison is true or false.
-
ABC Company manufactures and sells software packages to small businesses. The company has enjoyed great success since it began business in 1998. Last year, the firm doubled its revenues, and its...
-
Using the results of your review of the cash ?ows, evaluate the going concern risk of this company. What audit procedures would you recommend to address this risk. - Review the audit report of the...
-
Oil (u= 0.38 N.s/m^2) flows between parallel plates spaced 5mm apart. The bottom plate is fixed, but the upper plate moves with a velocity of 0.24 in the positive x direction. The pressure gradient...
-
For a continuous variable each score actually corresponds to an interval on the scale of measurement. ( a ) In general terms define the real limits of an interval. ( b ) If a distribution has scores...
-
Abby Sane decided to buy corporate bonds instead of stock. She desired to have the fixed-interest payments, She purchased 6 bonds of Meg Corporation 11.30% at 88.70%. As the stockbroker for Abby...
-
1.Jill buys 10 shares of stock in Costco Corporation at $150 per share on January 30, a membership retailer.During the year, Costco had a dividend of $1.80 per share at the end of June and the stock...
-
Accounting Question: Describe the process of impairment testing for goodwill as per IFRS and its impact on financial statements. * NO AI ANSWERS * AI SOLUTIONS WILL BE REPORTED *
-
1. Discuss the relationship of angle of bank to critical angle of attack. What factors make stall speed increase? 2. What external cues may identify the presence of wind-shear at an airport, assuming...
-
Cisco System's growth has slowed to a constant rate during the past few years. As a result, the company expects its common stock dividend to grow at a constant 5 percent for the remainder of the...
-
in the Journal of Psychology and Christianity or Journal of Psychology and Theology that relates to Christian psychology practice and ethics. Summarize the article and share your thoughts on the...
-
Independent random samples of sizes n1 = 30 and n2 = 50 are taken from two normal populations having the means 1 = 78 and 2 = 75 and the variances 21 = 150 and 22 = 200. Use the results of Exercise...
-
For each of the actions listed, determine what would happen to the current ratio. Assume nothing else on the balance sheet changes and that net working capital is positive. a. Accounts receivable are...
-
Discuss and compare the three explanations for the shape of the yield curve.
-
What is a companys responsibility to society? Proponents of the modern view of stakeholder theory argue that companies have a social obligation to operate in ethically, socially, and environmentally...
-
What is meant by the hockey stick pattern?
-
Flow chart the normal flow of cash in a casino.
-
While auditing a company you notice an employee in payroll who is living beyond his means (e.g., clothes, automobiles, housing). His wife does not work. Suggest six audit steps to help satisfy you...
Study smarter with the SolutionInn App