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Calculate the amount of financing needed for Molycorp in 2012.

Hint: financing amount is use of cash (capital expenditures, repayment of debt, investment in net working capital, interest expenses) minus source of cash (cash holdings minus minimum required cash).

Exhibit 3 Molycorp Income Statement, 2009-2012 (millions of dollars) Year Ending 12/31 2009 2010 6 Months Ending 6/30 2011 2012 2011 $ Revenue Costs of Goods Sold Gross Profit 7.1 $ 21.8 (14.7) 35.2 $ 28.8 396.8 154.2 242.7 $ 125.9 $ 189.0 55.1 145.3 70.8 43.8 6.4 12.7 22.5 45.2 2.3 56.7 7.7 15.2 65.6 9.7 SG&A Research & Development (R&D) Depreciation Earnings Before Interest and Tax (EBIT) 3.0 5.4 11.1 1.2 (28.6) 6.9 (48.1) 163.1 39.9 (42.6) 0,2 (0.2) 0.4 (0.2) 9.7 3.0 15.8 Net Interest Restructuring and Other Charges Profit Before Tax (PBT) (0.2) (28.6) 47.6 (99.9) (50.8) 146.9 40.1 28.6 0.8 (6.4) 1.0 Tax Expense (Credit) Minority Interest Net Income (29.5) (0.7) (69.7) (28.6) (50.8) 117.5 45.6 0.0 0.0 Common Dividends 0.0 0.0 0.0 Sources: S&P Capital IQ (accessed 11/8/13), and Molycorp Annual Reports, various years. Exhibit 4 Molycorp Balance Sheet, 2009-2012 (millions of dollars) As of December 31st 2009 2010 June 30th 2012 2011 $ $ Assets Cash & Short-Term Investments Accounts Receivable Inventory Other Assets Current Assets 6.9 $ 12 8.5 1.8 316.4 $ 16.4 18.8 1.8 418.9 70.7 111.9 37.5 639.0 369.3 118.4 319.9 105.4 913.0 18.5 353.4 66.4 94.0 Net PP&E Goodwill Intangibles Other Long-Term Assets Total Assets 0.7 12.1 0.6 31.5 479.6 561.6 3.4 3.1 47.9 1,255.1 1,153.3 505.0 491.9 96.0 3,159.2 97.7 Liabilities Short-Term Borrowing Accounts Payable Accrued Expenses Current Portion of LT Debt Other Current Liabilities Current Liabilities 2.9 5.9 3.1 13.0 4.2 0.9 161.6 12.9 1.5 1.7 287.9 51.5 263.2 35.0 637.6 0.7 0.4 20.7 9.5 178.6 196.5 18.9 15.8 835.0 172.7 50.9 Long-Term Debt Deferred Tax Liabilities Other Non-current Liabilities Total Liabilities Shareholder Equity Total Uabilities & Equity 13.5 23.1 12.3 33.0 409.9 1,696.2 74.6 97.7 446.5 479.6 845.2 1,255.1 1,463.0 3,159.2 Other Items Total Shares Outstanding Current Ratio Debt-to-Total Capital (book value) 45.0 1.9 0% 82.3 17.1 1% 83.9 3.6 19% 109.9 1.4 43% Sources: S&P Capital IQ (accessed 11/8/13), and Molycorp Annual Reports, various years. Exhibit 3 Molycorp Income Statement, 2009-2012 (millions of dollars) Year Ending 12/31 2009 2010 6 Months Ending 6/30 2011 2012 2011 $ Revenue Costs of Goods Sold Gross Profit 7.1 $ 21.8 (14.7) 35.2 $ 28.8 396.8 154.2 242.7 $ 125.9 $ 189.0 55.1 145.3 70.8 43.8 6.4 12.7 22.5 45.2 2.3 56.7 7.7 15.2 65.6 9.7 SG&A Research & Development (R&D) Depreciation Earnings Before Interest and Tax (EBIT) 3.0 5.4 11.1 1.2 (28.6) 6.9 (48.1) 163.1 39.9 (42.6) 0,2 (0.2) 0.4 (0.2) 9.7 3.0 15.8 Net Interest Restructuring and Other Charges Profit Before Tax (PBT) (0.2) (28.6) 47.6 (99.9) (50.8) 146.9 40.1 28.6 0.8 (6.4) 1.0 Tax Expense (Credit) Minority Interest Net Income (29.5) (0.7) (69.7) (28.6) (50.8) 117.5 45.6 0.0 0.0 Common Dividends 0.0 0.0 0.0 Sources: S&P Capital IQ (accessed 11/8/13), and Molycorp Annual Reports, various years. Exhibit 4 Molycorp Balance Sheet, 2009-2012 (millions of dollars) As of December 31st 2009 2010 June 30th 2012 2011 $ $ Assets Cash & Short-Term Investments Accounts Receivable Inventory Other Assets Current Assets 6.9 $ 12 8.5 1.8 316.4 $ 16.4 18.8 1.8 418.9 70.7 111.9 37.5 639.0 369.3 118.4 319.9 105.4 913.0 18.5 353.4 66.4 94.0 Net PP&E Goodwill Intangibles Other Long-Term Assets Total Assets 0.7 12.1 0.6 31.5 479.6 561.6 3.4 3.1 47.9 1,255.1 1,153.3 505.0 491.9 96.0 3,159.2 97.7 Liabilities Short-Term Borrowing Accounts Payable Accrued Expenses Current Portion of LT Debt Other Current Liabilities Current Liabilities 2.9 5.9 3.1 13.0 4.2 0.9 161.6 12.9 1.5 1.7 287.9 51.5 263.2 35.0 637.6 0.7 0.4 20.7 9.5 178.6 196.5 18.9 15.8 835.0 172.7 50.9 Long-Term Debt Deferred Tax Liabilities Other Non-current Liabilities Total Liabilities Shareholder Equity Total Uabilities & Equity 13.5 23.1 12.3 33.0 409.9 1,696.2 74.6 97.7 446.5 479.6 845.2 1,255.1 1,463.0 3,159.2 Other Items Total Shares Outstanding Current Ratio Debt-to-Total Capital (book value) 45.0 1.9 0% 82.3 17.1 1% 83.9 3.6 19% 109.9 1.4 43% Sources: S&P Capital IQ (accessed 11/8/13), and Molycorp Annual Reports, various years

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