Shares of rare-earth producer Molycorp keep rising

* Shares up 9.7 percent in early afternoon trade

* Extending last week’s gains

* Recent deals with Mitsubishi, Sumitomo have lifted stock

* Stock has more than tripled since summer IPO

CHICAGO, Dec 27 (BestGrowthStock) – Shares of Molycorp Inc (MCP.N: )
were up nearly 10 percent on Monday, extending last week’s
double-digit percentage gains, as investors continued to digest
the recent string of positive announcements out of the producer
of rare-earth metals.

Jim Sims, Molycorp’s top spokesman, said the company was
not aware of any news that might be driving Monday’s stock
gains. But he said a number of investment blogs had picked up
last week’s news of the joint venture Molycorp signed with
Hitachi Metals Ltd (5486.T: ), which s%nt the Greenwood,
Colorado-based company’s shares up 15 percent last Tuesday.

“My best guess is that news of the Hitachi deal continues
to spread throughout the investment community,” Sims told
Reuters in an email. “I’m still seeing it spread now through
blogs, etc.”

Molycorp, which only went public this summer, said the
joint venture with Hitachi will focus on materials used in a
variety of products from computer hard drives to wind

Prices have surged for these minerals, used in everything
from iPods to fluorescent light bulbs, since authorities in
Beijing slashed their rare earth exports by 40 percent this
summer, saying China needed them for its economic development.

Japanese companies, which bore the brunt of China’s action,
have been scrambling to secure reliable supplies of the

Earlier this month, Sumitomo Corp (8053.T: ) agreed to invest
$130 million in Molycorp to secure a seven-year supply of the
materials. [ID:nN10286929]

Also last week, Molycorp said it was ahead of schedule on
re-starting mining at the Mountain Pass, California site it
purchased from Chevron Mining in 2008.

Shares of Molycorp were last up 9.7 percent at $49.74 in
early afternoon trading after earlier touching $50.29. Since
debuting in late July at $14, the company’s stock has more than
tripled in value.
(Reporting by James B. Kelleher; Editing by Tim Dobbyn)

Shares of rare-earth producer Molycorp keep rising