Last July he had Resource Capital purchase more Molycorp shares in its initial public offering.
Karyannoupoulos ran Neo Materials Technologies before selling the company to Molycorp earlier this year.
Since then the prices of Molycorp Inc. shares have declined by 48% from the estimated average.
Molycorp is furthest along to renewed production and expansion so for sure gets a premium for that.
At the time Bhappu approached Chevron, however, the oil company did not seem prepared to unload Molycorp.
Molycorp and the rare earth elements it aims to produce have suddenly been receiving overwhelming public attention.
Decades later, in 2008, Bhappu put together a Resource Capital-led acquisition of Molycorp, based in Greenwood Village, Colo.
Casual investors would take one look at Molycorp, the producer of rare-earth minerals used in electronics, and run away.
Either scenario would be good news for Molycorp, as one of the major non-Chinese producers of these rare earths.
Molycorp has part of a plant (they can only separate some, not all).
Resource Capital moved in late January to sell part of its Molycorp holdings as the lockup on insider transactions expired.
While Molycorp claims trade secrets, Avalon believes its planned refining processes will use standard off the shelf long established procedures.
Chart Analysis : The weekly chart of Molycorp ( MCP) shows the break of major support, line a, last September.
In doing due diligence on Molycorp, Bhappu learned that many consumers of rare earth elements desperately wanted a Western-supply source.
Molycorp Inc. (NYSE:MCP) has three facilities, two located in the U.S., California and Arizona respectively, as well as one located in Estonia.
FORBES: 2012 Outlook: Uncertainty Continues For Rare Earths Prices, China Still Major Player
Molycorp Inc. shares are currently trading off about 2.8% on the day.
Bhappu, a 50-year-old partner at private equity firm Resource Capital Funds, has known about rare earth minerals and Molycorp his whole life.
Bhappu started his pursuit of Molycorp in 2005, after Chevron purchased Unocal.
Molycorp is on track to be producing 20, 000 tonnes a year soon.
Molycorp Inc. shares are currently trading down about 1.2% on the day.
One of the greatest private equity deals going, an investment in Molycorp, belongs to little-known private equity firm Resource Capital Funds, headquartered in Denver.
Molycorp can expect financial losses for at least two or three more years, but Bhappu claims current prices of rare earth elements are sustainable.
This year has seen considerable progress by several companies including Molycorp.
Molycorp is just going to have very, very low production costs.
Decades later, in September 2008, Bhappu, who has degrees in metallurgical engineering and mineral economics, led a group that included Goldman Sachs to purchase Molycorp from Chevron.
Two years later Bhappu had not forgotten about Molycorp when he attended a 2007 board meeting of Traxys, a metals trading firm that Resource Capital partly owns.
The leading stock in the sector, Molycorp ( MCP), was hit by disappointing earnings in May, and this put further pressure on all stocks in the sector.
Among the largest underlying components of XME, in trading today Carpenter Technology Corporation ( CRS) is up about 0.4%, and Molycorp Incorporated ( MCP) is up by about 2.9%.
As part of the deal, Chevron wound up owning Molycorp and since Chevron did not have much of a mining business Bhappu figured it might be available for purchase.
Ross Bhappu is a little-known mining and commodities investor, but he leads an investment group that controls a company, Molycorp, that U.S. legislators and military planners increasingly believe is a vital strategic asset.
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