General Moly (the “Company” or “General Moly”) (NYSE MKT and TSX: GMO) announced its financial results for the third quarter ended September 30, 2017 and reiterated that the Company’s balance sheet was strengthened through a $6.0 million private placement with its largest shareholder AMER International Group (“AMER”), which closed on October 16, 2017.
Bruce D. Hansen, Chief Executive Officer, said:
“Our Company is well positioned for the continuing gradual recovery of the molybdenum market. Steel demand in China and worldwide has rebounded strongly in 2017 underpinning molybdenum demand. Global stainless steel production rose 14.5% year-over-year to 11.8 million tonnes in the first quarter 2017, according to the International Stainless Steel Forum.
In the United States and around the world, oil and gas drilling activity requiring moly-reinforced steel has bounced back to over 2,000 operating rigs, a level last seen two years ago. While the fourth quarter typically reflects lower molybdenum demand from steel producers during the winter, we believe we will continue to see higher quarterly highs and lows in the molybdenum prices in 2019.”