This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

General Moly Announces Capital Cost Update And Letter Of Intent To Provide Additional Capital

On July 31, 2012, General Moly (the "Company") (NYSE MKT and TSX: GMO) announced an update to the Mt. Hope Project's capital cost estimate, which has increased by $130 million or 11% in total. In addition, the Company has entered into a non-binding letter of intent with Hanlong (USA) Mining ("Hanlong") to provide additional capital to the Mt. Hope Project, which is anticipated to meet the incremental project funding requirements.


The Company has completed its review of capital cost requirements for the Mt. Hope Project based on current major equipment, labor, and material pricing and further engineering definition. The project capital was also updated for currently known permitting and regulatory requirements and includes the schedule impacts of permitting delays since the previous September 2008 feasibility study update, which was reconfirmed in November, 2009. The Mt. Hope Project has not materially changed in scope and is currently designed at 60% engineering completion with solid scope definition. Over this 4 year period, the overall capital requirement estimate now totals $1,284 million of which $197 million has already been spent. General Moly's 80% share of the increase is $104 million.

The largest affected category of the estimate is owners' cost which increased 48% or $82 million, driven primarily by schedule delays largely attributed to an extended permitting timeline, as well as increased actual and forecasted permitting costs, driven by additional permitting requirements. The mining equipment category increased by 12%. Over 70% of the initial mining fleet is now committed with firm pricing, under purchase agreements.

Construction, materials and plant facility costs are now estimated to be $582 million, an increase of 11% or $59 million over the previous estimate, driven primarily by construction labor costs and the pricing for specialized process equipment, although we have benefited from our strategically placed equipment orders for primarily crushing and grinding equipment in 2007 and 2008 resulting in lower pricing than currently available.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.85 0.12%
FB $118.63 0.89%
GOOG $699.97 1.00%
TSLA $242.79 0.84%
YHOO $36.56 -0.10%


Chart of I:DJI
DOW 17,897.22 +123.58 0.70%
S&P 500 2,080.56 +15.26 0.74%
NASDAQ 4,814.73 +39.3720 0.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs