General Moly Reports Third Quarter 2016 Results

- November 7th, 2016

General Moly (TSX:GMO) has reported its third quarter 2016 results, noting a cash balance of approximately $11 million and $15.1 million in restrictive cash. The company remains on track to run business activities into 2018. As quoted in the press release: Third quarter highlights: The Company continued to prudently manage liquidity, with Corporate and Liberty … Continued

General Moly (TSX:GMO) has reported its third quarter 2016 results, noting a cash balance of approximately $11 million and $15.1 million in restrictive cash. The company remains on track to run business activities into 2018.
As quoted in the press release:

Third quarter highlights:

  • The Company continued to prudently manage liquidity, with Corporate and Liberty spend, excluding due-diligence related expenses, at $1.3 million in the third quarter, lower than previous guidance of $1.6 million.  During the final quarter of the year, the Company anticipates that Corporate and Liberty spend will be in line with previous guidance at $1.6 million.
  • The Mt. Hope Project’s joint venture operating company Eureka Moly, LLC (“EMLLC”) ended the third quarter with a balance of $13.0 million (100% basis) in a cash reserve account that is expected to fund ongoing projected care and maintenance expenses through 2021.
  • The Company continued working jointly with its long-term strategic partner and largest shareholder AMER International Group (“AMER”) in assessing value-accretive acquisition opportunities concentrated on base metal prospects in North America, incurring year-to-date due-diligence related expenses of $0.6 million, which are sourced from a restricted cash account available for that purpose.

For the third quarter ended September 30, 2016 the Company reported a net loss of $2.1 million ($0.02 per share), compared to a net loss of $2.7 million ($0.03 per share) for the prior year period. The decrease in quarterly net loss was primarily due to reduced overall ongoing expenditures in 2016 versus 2015 and from continued cash conservation and cost control efforts.
During the third quarter, cash use of $2.0 million, sourced from both restricted and unrestricted funds, was the result of $0.7 million of EMLLC owners’ costs, $0.1 million of Liberty Project costs, and $1.2 million in general and administrative expenses.

Click here to read the full press release.

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