General Moly, Inc. (NYSE:GMO) started its trading session with the price $0.37 and closed Monday at price of $0.38 by scoring 2.7%. Day range of the stock was $0.37 – $0.38. GMO stock traded with total volume of 59,657 shares while the average trading capacity remained 99805 shares. Earnings per share was $-0.07. GMO has total market capitalization of $49677625.
General Moly, Inc. (NYSE:GMO) reported its financial results today for the first quarter ended March 31, 2018. The Company ended the quarter with an unrestricted cash balance of approximately $6.0 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.
First quarter and year-to-date highlights:
Results from a high-intensity, ground-based Induced Polarization (“IP”) survey identified an apparent contiguous group of high chargeability anomalies aligned with the recently identified high-grade copper-silver mineral zone (“Cu-Ag Target”), at the Mt. Hope Project in central Nevada; analysis of the geophysical and historical drilling results is ongoing to define an initial exploration plan;
The Company’s 80%-owned joint venture company, which owns and operates the Mt. Hope Project, Eureka Moly, LLC (“EMLLC”); ended the quarter with a balance of $9.0 million (100% basis) in a restricted cash reserve account, and remains self-funded through 2021 based on estimated care and maintenance expenses;
The moly oxide daily global spot price averaged $12.23/lb during the quarter, up 40 percent over the average of $8.76/lb in 4Q 2017, according to Platts;
A revamped www.generalmoly.com website with improved functionality and broader content, including moly market information was rolled out recently, as announced in the Company’s news release on April 30, 2018.
The Company reported a net loss for the three months ending March 31, 2018 of $2.6 million ($0.02 per share), compared to a net loss of $1.9 million ($0.02 per share) for the same prior year period.
During the quarter, total cash use of $2.1 million was the result of $0.4 million spent at the Mt. Hope Project related to EMLLC owners’ costs, funded by the restricted cash reserve account, and $1.7 million cash spent for general and administrative expenses, inclusive of costs incurred at the Liberty Project, funded by $1.3 million in unrestricted cash and $0.4 million drawn from a restricted account for business development activities. The Company’s cash balance of $6.0 million at the end of 1Q 2018 included $0.5 million in proceeds from the issuance of shares under an At-The-Market equity program. As described in its March 13, 2018 news release on full year 2017 results, the Company anticipates its quarterly unrestricted cash burn rate to average approximately $1.3 million per quarter for the full year 2018, excluding any drill program 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 1Q 2018, the Company disbursed $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.
Bruce D. Hansen, Chief Executive Officer, said, “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 mineralized 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 $11.83/lb in mid-April before increasing to the current price of $12.40/lb, trailing the same general pattern as the oil price, which is now at the $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.”
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