Today, General Moly, Inc. (General Moly) announced its financial results for the first quarter ended 31 March 2018. The company ended the quarter with an unrestricted cash balance of approximately US$6 million and is poised to benefit as the only western-exchange listed, pure-play molybdenum (moly) development company in the continued strengthening of the moly market.
The company reported a net loss for the three months ending 31 March 2018 of US$2.6 million (US$0.02 per share), this is 26.9% greater than its net loss of $1.9 million (US$0.02 per share) for the same period in 2017.
During the quarter, total cash use of US$2.1 million was the result of US$0.4 million spent at the Mt. Hope Project related to EMLLC owners' costs, funded by the restricted cash reserve account, and US$1.7 million cash spent for general and administrative expenses, inclusive of costs incurred at the Liberty Project, funded by US$1.3 million in unrestricted cash and US$0.4 million drawn from a restricted account for business development activities. The company's cash balance of US$6.0 million at the end of 1Q18 included US$0.5 million in proceeds from the issuance of shares under an At-The-Market equity programme.
The company anticipates its quarterly unrestricted cash burn rate to average approximately US$1.3 million per quarter for the full year 2018, excluding any drill programme exploring for copper, silver and zinc at the Mt. Hope Project.
The company continues to evaluate joint business development opportunities in base metal and ferroalloys with its largest shareholder, AMER International Group (AMER). In 1Q18, the company disbursed US$0.4 million on M&A activities. This restricted cash account is designed to cover costs related to Mt. Hope Project financing and other jointly sourced business development opportunities and was funded by a portion of the AMER Tranche 1 and 2 private placements made in 2015 and 2017.
CEO of General Moly, Bruce D. Hansen, commented: "We are continuing our exploration efforts with support of Dr. Mark Osterberg, Principal Consulting Geologist, and his team at Mine Mappers, LLC, in the evaluation of the Cu-Ag Target within a 17-acre zinc mineralised area covering historical underground mining of primarily zinc at the Mt. Hope Project. We continue to be excited about the exploration potential of this skarn area of interest, immediately adjacent to the moly deposit at Mt. Hope and expect to provide an update announcement later this quarter regarding our initial exploration plan. In regards to the moly price, we saw a brief downturn where the price retraced to US$11.83/lb in mid-April before increasing to the current price of US$12.40/lb, trailing the same general pattern as the oil price, which is now at the US$70/barrel mark. As long as there is a sustainable oil industry with robust oil drilling activity and oil and gas infrastructure investment globally, there is strong demand for specialty steels using moly."
2018 Outlook and Goals
General Moly's ongoing aims for 2018 are to:
- Leverage the company's technical and financial skills and expertise to work jointly with AMER and others to identify value-accretive acquisition opportunities with a focus on base metal and ferroalloy prospects.
- Proceed with geologic assessment and further exploration of the potential copper-silver target and zinc mineralisation at the Mt. Hope Project;
- Continue to progress towards obtaining a ROD approving the SEIS and the issuance of water permits for the Mt. Hope Project.
- Manage financial liquidity and flexibility to sustain the company over the medium term, excluding potential additional equity investments from AMER or other potential strategic sources.
Read the article online at: https://www.globalminingreview.com/finance-business/08052018/general-moly-publishes-1q18-results/
You might also like
Flender has received the Supplier Excellence Recognition Award from Caterpillar.