General Moly Reports Q2 2015 Net Loss of $6.8 Million

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General Moly Inc. (TSX:GMO,NYSEMKT:GMO) released its unaudited financial results for Q2 2015, commenting that it incurred a net loss of $6.8 million, or $0.07 per share.

General Moly Inc. (TSX:GMO,NYSEMKT:GMO) released its unaudited financial results for Q2 2015, commenting that it incurred a net loss of $6.8 million, or $0.07 per share. That’s up from a net loss of $2.8 million, or $0.03 per share, during the year-ago period.
As quoted in the press release:

Excluding restricted cash, the Company’s cash balance at June 30, 2015 was $18 million compared to $13 million at December 31, 2014 and $16 million at March 31, 2015. In June 2015, General Moly announced an agreement which will allow the transition to the provider’s network services by terminating the existing third-party transmission contracts to provide power to the Mt. Hope Project. With the agreement, Eureka Moly, LLC (“EMLLC”), of which General Moly is an 80% member, received a return of approximately $7.9 million net of termination costs, expenses and consideration to the transmission providers. In January 2015, the Company and POS-Minerals Corporation (“POS-Minerals”), as the members of EMLLC, announced an agreement that provided access to the $36 million reserve account for Mt. Hope dedicated spend. During the second quarter, cash use of $6 million was the result of $3 million spent on Mt. Hope Project development costs (including owner’s cost, reclamation bond premiums and $2 million towards completing the purchase of electrical transformers) and $3 million in general and administrative expenses. With the jointly developed revised long-term budget to maintain the Mt. Hope Project in its permitted, construction ready status, the EMLLC members agreed in January that the budget will be entirely funded by the reserve account, until at least through 2020. Thus, the reserve account should cover anticipated operating expenses, and committed equipment purchase obligations until the Company’s full financing for the Mt. Hope Project construction is obtained.

Bruce D. Hansen, CEO of General Moly, commented:

The Company made significant strides to advance development of the fully permitted Mt. Hope Project and improve our liquidity profile in the second quarter. AMER is an enthusiastic and committed partner who will become a major shareholder of General Moly and has agreed to work with the Company to procure and ultimately guarantee a senior secured term loan of approximately $700 million for development of the Mt. Hope Project.
The proceeds from the termination of the transmission agreement, combined with the previously announced $8.5 million private placement financing and a January agreement with POS-Minerals Corporation to use restricted cash of up to $36 million for the benefit of the Mt. Hope Project, provides the Company with a significantly improved project and corporate liquidity profile, even before considering the funding anticipated from the closing of the AMER transaction, while fully maintaining the Mt. Hope Project’s construction-ready status.
The Company remains focused on procuring full construction financing for the Mt. Hope Project. Given that the transaction with AMER was recently approved at our Annual Meeting of Stockholders, we are coordinating closely to address the remaining conditions for closing the Investment and Securities Purchase Agreement. When this is complete, the Company will begin leveraging AMER’s equity investment and debt capacity to further advance financing for the Mt. Hope Project.

Click here to read the full General Moly Inc. (TSX:GMO,NYSEMKT:GMO) press release.

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