General Moly (NYSE AMEX: GMO) (TSX: GMO) announced its unaudited
financial results for the second quarter ended June 30, 2009.
Second quarter net loss was approximately $2.8 million ($0.04 per share)
compared to a loss of $3.8 million ($0.05 per share) for the year ago
period. Net loss for the six month period ending June 30, 2009 was
approximately $5.8 million ($0.08 per share) compared to a loss of $9.1
million ($0.13 per share) for the year ago period.
Consolidated cash balance at the end of the second quarter was
approximately $70.1 million compared to $80.4 million at the end of the
first quarter as a result of $8.6 million in development and equipment
deposit costs and $1.7 million in General and Administrative costs.
PERMITTING UPDATE
As announced in March, the Company initiated efforts to enhance its
understanding of groundwater hydrology surrounding the Mt. Hope
project’s planned open pit operation and long-term pit water quality.
During the quarter, six observation wells and three core holes were
drilled and pump tests were conducted for the purpose of collecting
hydrologic data at depth. Drilling was largely conducted in May and the
pump tests were concluded on July 20. Results of these pumping tests
will now be incorporated into the numerical groundwater models to
complete the technical studies. The regional and local pit hydrology
study and pit lake geochemistry study represent the final two
outstanding reports required for the Bureau of Land Management (BLM) to
prepare its draft of the Environmental Impact Statement (EIS). These
studies are now being finalized and are anticipated to be submitted to
the BLM in September of this year. The Company anticipates completion by
the BLM of an administrative Draft EIS in late 2009 and expects to
receive its Record of Decision (ROD) in mid-2010.
Additionally, all mine water permits for the Company’s water
applications that were approved in late March were issued on July 21 and
other Nevada State permits continue to be expected to be received prior
to the effective date of the ROD.
FINANCING PLAN UPDATE
The Company is continuing work with Credit Suisse and Barclays to seek
ultimate bank project financing. Additionally, the Company has engaged
Cutfield Freeman & Co., a London based financial advisory firm, to
assist the Company in primarily seeking bi-lateral agency and off-take
related financing to potentially augment the projected bank financing.
