General Moly Updates Mt. Hope’s Operating Cost Estimate, Project Economics

General Moly Inc. (TSX:GMO,NYSEMKT:GMO) updated the operating cost estimate and project economics for its Nevada-based Mt. Hope project, commenting that over the first full five years of operation, direct operating costs are expected to average $6.28 per pound, while costs applicable to sales should average $7 per pound.

“On a look forward basis,” and at a flat, long-term moly price of $15 per pound, “economics for General Moly’s 80% ownership in the Mt. Hope Project” indicate an after-tax net present value of $707 million at an 8-percent discount rate, and an expected internal rate of return of $17.6 percent.

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

We have enhanced the granularity of our mine plan and demonstrated the attractive economics and robust case for the construction and operation of the Mt. Hope Project. Given the ongoing due diligence supporting our financing efforts, we were eager to update the mine plan and project economics from our prior estimates.

While we predictably, and like most industry players, saw some measure of operating cost escalation, we believe this update compares favorably to industry trends, and note that the Mt. Hope Projectremains well positioned within the lower quartile of the cost curve for primary molybdenum development projects and existing primary molybdenum operations. Further, we feel that the Mt. Hope Project remains the world’s best large scale, low cost, fully permitted and construction ready primary molybdenum development project. Given the cost structure of the industry along with growth demand potential, we feel the molybdenum price will continue to improve in the coming years to a more sustainable long term level.

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