General Moly Reports its First Quarter Results

General Moly (NYSE:MXT) has reported its first quarter results for 2016, finishing the quarter with approximately $15.8 million and $17.2 million in restricted cash.
As quoted in the press release:

First quarter highlights:

• The Company continued to lower the cash burn rate for Corporate spend and Liberty Project costs to $2.0 million in the quarter versus $3.0 million spent in the first quarter of 2015, as it prudently manages liquidity.  Corporate and Liberty spending is estimated to be lowered further and is projected to average about $1.7 million per quarter going forward.
• Mt. Hope Project’s joint venture operating company Eureka Moly, LLC (“EMLLC”) ended the first quarter with a balance of $14.7 million (100% basis) in a cash reserve account, and remains self-funded through 2020 based on projected care and maintenance expenses.  EMLLC also received a net refund of $4.3 million (100% basis) in February 2016 from a reduction in reclamation funding requirements.
• The Company focused efforts throughout the quarter on working jointly with its long-term strategic partner AMER International Group (“AMER”) in assessing value-accretive acquisition opportunities concentrated on base metal prospects in North America.

Bruce Hansen, CEO, said:

We continue to evaluate value-accretive, acquisition opportunities jointly with AMER, for our mutual benefit.  Further, we continue to take decisive actions that better position our Company to advance the development of the Mt. Hope Project when market conditions improve.  Through our management restructuring and cost reduction programs, we have achieved additional reductions in our Corporate spend and Liberty Project care and maintenance costs, and we remain focused on working toward the reinstatement of our water rights for the Mt. Hope Project.

Click here for the full press release.