General Moly Reports First Quarter 2017 Results

General Moly, Inc. (the “Company” or “General Moly”) (NYSE MKT and TSX: GMO) announced its financial results for the first quarter ended March 31, 2017.  The Company ended the quarter with a cash balance of approximately $7.1 million as compared to $8.5 million at year-end 2016.  The Company is well positioned with financial liquidity to fund its current business activities and working capital needs into the second quarter of 2018.

First quarter highlights:

  • The Company maintained the quarterly cash burn rate for Corporate and Liberty Project costs at an estimated $1.5 million per quarter.  The Company forecasts that it has the ability to fund its current business plans and working capital into the second quarter of 2018, excluding potential additional equity investments from AMER International Group Inc. (“AMER”) or other potential strategic partners;
  • At the Mt. Hope Project, our 80% owned joint venture operating company Eureka Moly, LLC (“EMLLC”) ended the first quarter of 2017 with a restricted cash balance of $12.0 million (100% basis) compared to $13.0 at year end 2016 in a cash reserve account, and remains self-funded through 2021 based on projected care and maintenance expenses.
  • The Company reported a net loss for the three months ending March 31, 2017 of $1.9 million ($0.02 per share), compared to a net loss of $2.2 million ($0.02 per share) for the same prior year period. The decrease in quarterly net loss was primarily due to the Company’s ongoing cost-cutting measures.

Bruce D. Hansen, Chief Executive Officer, said

“We remain focused on progressing efforts to reinstate our permits for water rights at the Mt. Hope Project and working with the Bureau of Land Management (“BLM”) to resolve the technical deficiencies noted by the U.S. Court of Appeals for the Ninth Circuit (“Ninth Circuit”) concerning the baseline air quality requirements under the National Environmental Policy Act (“NEPA”) and complete a supplemental Environmental Impact Statement to obtain the reissuance of our Record of Decision (“ROD”).

In addition to advancing the Mt. Hope Project, we are continuing to progress efforts with our strategic partner AMER and others as we review value accretive base metals and molybdenum related opportunities.  We have seen the molybdenum price increase by over 30% year to date to trade at approaching $9/lb and anticipate an improved molybdenum market going forward as we see the oil market stabilize and energy related steel production increasing.  In addition, general construction and infrastructure development bodes well for the molybdenum market as global steel production grew over 5% in the quarter.”

Click here to read the full news release.

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