Shares of Molycorp, Inc. (NYSE:MCP) are shooting 13% higher after CEO Mark Smith went on CNBC (NYSE:GE) and said:
“I don’t believe there is a bubble [in rare earth prices] … These prices are absolutely sustainable and that’s really based upon the very simple facts of supply and demand.”
“The rest of the world, everybody outside of China, is going to need 55 to 65,000 tons of these materials and the Chinese government is going to limit those exports to probably somewhere around 25,000 tons,” Smith said. “There’s a huge gap there and Molycorp is going everything in its power right now to increase production.”
That was enough to get the white hot shares spiking with new demand from traders and investors. Here’s the full clip:
Disclosure: No positions.