1. You have been hired as a consultant by Molycorp, a rare earth mineral mining company headquartered in Colorado. Your job is to evaluate a huge financing decision the company faces as part of its capital expenditure program named "Project Phoenix." You need to evaluate how much financing Molycorp will need as well as a set of financing choices available to Molycorp including internal cashflows, multiple external funding sources, and an asset sale, and provide a report to the CFO of Molycorp about recommended paths forward. The CFO has provided to you with the information you will need for your analysis in two complementary case studies, "Molycorp: Financing the Production of Rare Earth Minerals" and "Showdown at Mountain Pass: Bidding for Neo Materials." Download and read the case studies, "Molycorp: Financing the Production of Rare Earth Minerals" and "Showdown at Mountain Pass: Bidding for Neo Materials" (both are in your Harvard case packet) and answer the questions below as you formulate a recommendation for the CFO. You may also find the reading note "Convertible Securities" (in your Harvard case packet) to be useful in your analysis. 
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3. Note: Harvard has not made electronic exhibits publicly available for the Neo Materials case. Answer the following questions in your report to the CFO: 
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5. Evaluate each of the financing choices available to Molycorp (given in the Molycorp case) separately. Project out the financials with each of these choices. Based on these projections, what are the costs and benefits to Molycorp of using each option relative to the others? Again, you should assume a $50 future stock price at the time of conversion of any convertible securities.

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Moly Corp Financing the Production of Rare Earth Minerals Introduction Moly Corp is an American business whose headquarters are situated in Greenwich This firm extracts nonpolluting minerals from the ... View the full answer