GENERAL MOLY ANNOUNCES
FIRST QUARTER RESULTS
LAKEWOOD, COLORADO � May 6, 2010, General Moly (NYSE
Amex and TSX: GMO) announced its unaudited financial results for the first
quarter ended March 31, 2010. Net loss for the three months ended March
31, 2010 was approximately $2.8 million ($0.04 per share), compared to a loss
of $3.0 million ($0.04 per share) for the year ago period.
Consolidated cash balance
at the end of the quarter was approximately $25 million compared to
approximately $49 million at the end of 2009. During the first quarter,
cash use of $24 million was the result of $21 million in development and
milling equipment deposit costs and $3 million in General and Administrative
costs. The Company anticipates spending approximately $8 million on
equipment and associated freight and taxes in the second quarter, and a further
$2 million through the end of the year on previously-contracted long-lead
milling equipment. Financial information is included at the end of
this release.
PERMITTING UPDATE
The Company currently expects the Bureau of Land Management (BLM) to
complete an administrative Draft Environmental Impact Statement (EIS) mid-year
and to receive its Record of Decision late in the fourth quarter of this year
or early in 2011. The two final outstanding technical reports related to
regional hydrology and pit lake geochemistry were completed and re-submitted to
the BLM in late April and early May addressing comments received from the BLM late
last year. The Company believes these reports are now final.
As announced on April 26, 2010, a Nevada District Court remanded a Nevada
State Engineer�s decision to grant water permits to the Company back for a new
hearing. A pre-hearing conference has been scheduled by the State
Engineer for May 24, where the scope and date of the new hearing will be
determined. The Company is working to expedite the schedule to the extent
possible and anticipates the re-granting of its water applications to occur in the
second half of the year.
FINANCING UPDATE
As announced on April 26, 2010, the Company drew the first $10 million
tranche of the Bridge Loan under the Hanlong agreement, which is not reflected
in the cash balances reported on these financial statements. Both parties
continue to work toward achievement of Tranche 1 Conditions, including
stockholder approval, which will be sought at the Company�s May 13, 2010 Annual
General Meeting.
ENGINEERING AND EQUIPMENT PROCUREMENT UPDATE
The Company will restart engineering efforts, which had been paused in March
2009 to conserve cash, following stockholder approval of the equity issuances
in connection with the Hanlong transaction and publication of the Draft EIS,
currently anticipated to occur by mid-year. Equipment procurement
efforts, which had also been paused, will resume later in the year.
Although the Company has secured orders for most of the milling equipment, firm
orders for much of the mobile mine fleet still must be placed.
MOLYBDENUM MARKET UPDATE
Over the first quarter of 2010, spot molybdenum prices traded higher
supported by strong demand from global steel producers, particularly in
Asia. Reports from a variety of sources indicate that both Korean and
Japanese steel mills are running at or near full capacity and that their access
to moly is becoming strained. Chinese exports of moly remain at extremely
low levels forcing Korean and Japanese steel producers to source moly from the
West and providing support to prices. During the quarter, prices averaged
approximately $16.50 per pound and are currently at $18 per pound.
Additional
information on the Company�s fourth quarter and full year 2009 results will be
available in General Moly�s 2009 Form 10-K, which will be filed with the
Securities and Exchange Commission and posted on the Company�s website.