Shares of Molycorp (MCP.N) fell more than 12 percent on Friday after the rare earth producer said in a regulatory filing that it is under investigation by the Securities and Exchange Commission over the accuracy of its disclosures.
The company said that it is co-operating with the SEC and cannot predict the length or scope of the investigation. It is not clear if the investigation will have an impact on operations.
After the market closed on Thursday, Molycorp reported a third-quarter loss on lower rare earth prices and higher production costs, but beat analyst expectations.
Shares opened 6.5 percent higher, but then fell more than 12 percent after the regulatory filing was made public. The stock was down 8.3 percent at $7.96 at midday on the New York Stock Exchange. (Reporting by Julie Gordon; Editing by David Gregorio)