On Thursday, Shares of General Moly, Inc. (NYSEMKT:GMO)lost-0.22% to $0.4001. The share price is trading in a range of 0.40 - 0.4162 (Price in Dollars). The stock exchanged hands with 55,751shares contrast to its average daily volume of 167,931shares.General Molyfinished the first quarter with a strong cash balance of about $15.80 million and $17.20 million in restricted cash. The Company remains positioned with financial liquidity to fund its current business activities and working capital needs into early 2018.
First quarter highlights:
- The Company continued to lower the cash burn rate for Corporate spend and Liberty Project costs to $2.0M in the quarter as compared to $3.0M spent in the first quarter of 2015, as it prudently manages liquidity. Corporate and Liberty spending is estimated to be lowered further and is projected to average about $1.70M per quarter going forward.
- Hope Project’s joint venture operating company Eureka Moly, LLC ended the first quarter with a balance of $14.70 million (100% basis) in a cash reserve account, and remains self-funded through 2020 based on projected care and maintenance expenses. EMLLC also received a net refund of $4.30 million (100% basis) in February 2016 from a reduction in reclamation funding requirements.
- The Company focused efforts throughout the quarter on working jointly with its long-term planned partner AMER International Group in assessing value-accretive acquisition opportunities concentrated on base metal prospects in North America.
2016 Outlook and Priorities:
As was discussed in the Company’s 2015 year-end financial results news release, General Moly’s priorities for 2016 are to:
Prudently manage financial liquidity and flexibility to sustain the Company over the medium term, counting continued stringent cost administration throughout the organization to fund current business activities into early 2018, apart from potential additional AMER investments;
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 $6.0M by AMER, contingent on a molybdenum price rise to $8.00 per pound for 30 successive calendar days;
Maintain existing federal and state permit status for the Mt. Hope Project.
The share price of General Moly, Inc. (NYSEMKT:GMO) declined46.67percent for the year. YTD, the current share price of the stock is above100.00percent. The company holds earnings per share (EPS) of $-0.16for the twelve months.
