Interconnecting financial performance and internationalization: A case of a rare metal producer

Abstract

The paper aims to outline the causes that affected a rare earth metal producer Molycorp Silmet’s internationalization based on case study evidence. Moreover, based on statistical analysis, it aims to study how its internationalization and financial performance were interconnected. It concludes that 1) its export fluctuations mostly resulted from external factors and that despite such fluctuations, the firm’s financial health was mostly good, 2) high concentration on a single target market can lower profitability, 3) fluctuations in target market shares can increase or decrease a firm’s profitability, but they are not interconnected with its bankruptcy probability.