|Shares Out. (in M):||92||P/E||0.0x||0.0x|
|Market Cap (in $M):||190||P/FCF||0.0x||0.0x|
|Net Debt (in $M):||159||EBIT||0||0|
|TEV (in $M):||350||TEV/EBIT||0.0x||0.0x|
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On Apr 3, 2013
CEO Hansen: “The Company has made substantial progress with regards to our preliminary construction activities at Mt. Hope including early well field development, clearing and grubbing of terrain and cultural clearance. Moreover, we maintain a strong liquidity position and anticipate reporting an unrestricted cash position ranging from $54 to $58 million at the end of the first quarter with an additional $36 million in restricted cash. We will continue to prudently manage our cash position going forward as we progress our efforts toward full financing.”
On May 3rd 2013, Earnings were Announced
Excluding restricted cash, the Company’s cash balance at March 31, 2013 was approximately $57 million compared to $68 million at December 31, 2012. During the first quarter, cash use of $16 million was the result of Mt. Hope Project development, engineering, and procurement costs as well as general and administrative expenses partially offset by the receipt of $5 million in contribution payments from POS-Minerals Corporation. In December, the Company and POS-Minerals, as members of Eureka Moly, LLC (“EMLLC”), agreed to hold $36 million of the approximately $100 million received from POS-Minerals’ December 2012 contributions in a reserve account to maintain additional liquidity until the Company arranges full project financing.
In a previous project financing update, the Company reported that on March 20, 2013, the Company was notified that China Development Bank had provided instructions to its legal counsel to suspend work on the $665 million Term Loan. This suspension relates to reports that Mr. Liu Han, Chairman of Sichuan Hanlong Group has been detained by Chinese authorities. The Company is continuing efforts with Hanlong (USA) Mining (“Hanlong”) to secure another strategic partner to help advance the full financing of the Mt. Hope Project.
Bruce D. Hansen, Chief Executive Officer of General Moly, said "The Company made substantial progress with regards to our preliminary construction activities at Mt. Hope during the first quarter including early well field development, clearing and grubbing of terrain and cultural clearance.”
Mr. Hansen added, “We are working with Hanlong to secure another Chinese strategic partner to help advance the full financing of the Mt. Hope Project and reinvigorate advanced stage loan negotiations with China Development Bank. Our efforts to secure such a strategic partner are enhanced, given that we are advancing a fully permitted, construction-ready, high grade / lower cost molybdenum deposit along with our EMLLC partner POS-Minerals.”
On May 14, 2013
General Moly and Hanlong (USA) Mining (“Hanlong”) mutually agreed to terminate a $125 million subordinated loan agreement intended to supplement a $665 million Chinese sourced term loan for the financing of the Mt. Hope Project. The subordinated loan agreement, which would have become available upon receipt of the Chinese sourced term loan, was terminated to provide General Moly with greater flexibility in securing an additional Chinese strategic partner. The termination of the subordinated loan agreement also cancels the arrangement fee of $6.25 million payable upon closing of a Chinese sourced term loan. Further, the warrant with a 2.5 year maturity to purchase ten million shares of General Moly common stock at a strike price of $4.23 per share was terminated. Bruce D. Hansen, Chief Executive Officer of General Moly, said, “Hanlong’s cooperation and assistance is appreciated as we move forward to secure another Chinese strategic partner capable of advancing the full financing of the Mt. Hope Project and reinvigorating advanced stage loan negotiations with China Development Bank.”
Mr. Hansen added, “Our efforts to secure such a strategic partner are incrementally enhanced by the elimination of these warrants which reduces the potential for future dilution. We are actively marketing the Mt. Hope Project as a fully permitted, construction-ready, high grade / lower cost molybdenum deposit supported by our joint venture partner POS-Minerals, and recently attracted a number of parties in China who are beginning to engage in due diligence.”
Mr. Hansen concluded, “We are also in discussions to negotiate an equipment lease agreement on the mobile mining fleet to replace all or part of the subordinated loan agreement component of our Mt. Hope Project finance plan.”
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