LAKEWOOD, Colo., Nov. 7, 2016 /PRNewswire/ -- General Moly,
Inc. (the "Company" or "General Moly") (NYSE MKT and TSX: GMO)
finished the third quarter of 2016 with a cash balance of
approximately $11.0 million and
$15.1 million in restricted cash and
remained on track to run its current business activities into early
2018.
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 $1.2 million in general and administrative
expenses.
Bruce Hansen, Chief Executive
Officer, remarked, "2016 has been a challenging year as the
molybdenum market slowly recovers. We remain focused on
maintaining our permits at the Mt. Hope and Liberty projects,
progressing efforts toward the reinstatement of our water rights
for the Mt. Hope Project, and continuing to control our ongoing
spending levels in alignment with our cash conservation and
liquidity management goals. Together with our largest
shareholder AMER, we have continued to methodically evaluate a
number of base metal and molybdenum prospects over the last three
quarters. AMER remains patient and committed to the acquisition
opportunity process continuing in earnest into 2017, as we
anticipate an improved molybdenum market going forward as we see
the oil market stabilize and energy related steel production
increasing.
Table 1: Financial Summary
($ and Shares in
000)
|
3Q
2016
|
3Q
2015
|
3Q YOY
Variance
|
Exploration
& evaluation expenses
|
$
235
|
$
464
|
-49%
|
General and
administrative expenses
|
1,589
|
2,169
|
-27%
|
Total Operating
Expenses
|
1,824
|
2,633
|
-31%
|
Interest
expense
|
(266)
|
(56)
|
375%
|
Net Loss
|
$ (2,090)
|
$ (2,674)
|
-22%
|
Net Loss Per
Share
|
$
(0.02)
|
$
(0.03)
|
-33%
|
Avg. Weighted Shares
Outstanding
|
110,568
|
95,725
|
16%
|
Table 2: Balance Sheet Summary
($ in 000)
|
September 30,
2016
|
December 31,
2015
|
Cash and Cash
Equivalents
|
$
11,030
|
$
13,047
|
Current
Assets
|
11,039
|
13,197
|
Current
Liabilities
|
1,192
|
2,404
|
Working
Capital
|
9,847
|
10,793
|
Restricted
cash held at EMLLC
|
13,025
|
16,636
|
Other
restricted cash
|
2,099
|
6,782
|
Total
Assets
|
338,935
|
346,311
|
|
|
|
Long term
debt
|
1,415
|
1,517
|
Senior
Convertible Promissory Notes
|
5,529
|
5,316
|
Return of
contributions payable to POS-Minerals
|
33,641
|
33,884
|
Other
liabilities
|
12,976
|
12,523
|
Long term
liabilities
|
53,561
|
53,240
|
|
|
|
Contingently
Redeemable Non-controlling Interest
|
172,668
|
173,265
|
Total Shareholders'
Equity
|
$
111,514
|
$
117,402
|
Fourth Quarter 2016 and 2017 Outlook and Priorities
As was previously discussed in the Company's 2015 year-end
financial results news release, General Moly's priorities for the
fourth quarter and into 2017 remain to:
- Prudently manage financial liquidity and flexibility to sustain
the Company over the medium term, including continued stringent
cost management throughout the organization to fund current
business activities into early 2018, excluding potential additional
AMER equity investments into General Moly;
- Continue to leverage General Moly's technical and financial
skills and expertise to work jointly with AMER to identify
value-accretive acquisition opportunities with a focus on base
metal prospects in North
America;
- Effect reinstatement of permits for water rights at the Mt.
Hope Project, which would lead to the Tranche 2 investment of
$6.0 million by AMER, contingent on a
molybdenum price rise to $8 per pound
for 30 consecutive calendar days;
- Maintain existing federal and state permit status for the Mt.
Hope and Liberty projects.
About General Moly
General Moly is a U.S.-based molybdenum mineral development,
exploration and mining company listed on the NYSE MKT and the
Toronto Stock Exchange under the symbol GMO. The Company's primary
asset, an 80% interest in the Mt. Hope Project located in
central Nevada, is considered one
of the world's largest and highest grade molybdenum deposits.
Combined with the Company's wholly-owned Liberty Project, a
molybdenum and copper property also located in central Nevada, General Moly's goal is to become the
largest pure play primary molybdenum producer in the world.
Contact:
Scott
Roswell
(303) 928-8591
info@generalmoly.com
Website: www.generalmoly.com
Forward-Looking Statements
Statements herein that are not historical facts are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act, as amended and Section 21E of the Securities
Exchange Act of 1934, as amended and are intended to be covered by
the safe harbor created by such sections. Such
forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from those projected, anticipated, expected, or implied by the
Company. These risks and uncertainties include, but are not
limited to, metals price and production volatility, global economic
conditions, currency fluctuations, increased production costs and
variances in ore grade or recovery rates from those assumed in
mining plans, exploration risks and results, political, operational
and project development risks, including the Company's ability to
obtain a re-grant of its water permits and to maintain required
federal and state permits to continue construction, commence
production and its ability to raise required project financing, as
well as adverse governmental regulation and judicial outcomes such
as the appeal of the Record of Decision and estimates related to
cost of production, capital, operating and exploration
expenditures. For a detailed discussion of risks and other
factors that may impact these forward looking statements, please
refer to the Risk Factors and other discussion contained in the
Company's quarterly and annual periodic reports on Forms 10-Q and
10-K, on file with the SEC. The Company undertakes no
obligation to update forward-looking statements.
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SOURCE General Moly, Inc.