This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

General Moly Breaks Ground At Mount Hope

General Moly Breaks Ground at Mount Hope General Moly (AMEX:GMO,TSX:GMO) achieved a significant milestone with its Mount Hope project in early January, beginning preliminary construction at the site after completing the permitting process in late 2012.

“The permitting process was a long road,” said Scott Kozak, General's director of investor relations, in a January 30 telephone interview. “We worked as closely as possible with all major stakeholders, from the Bureau of Land Management to Eureka County and the general public. We are very confident in our planning and mitigation efforts and are committed to developing Mount Hope responsibly. We believe Mount Hope will become an important contributor to economic development in Nevada for decades to come.”

General is a molybdenum-focused development, exploration and mining firm with two projects, 80-percent-owned Mount Hope and the 100-percent-owned Liberty project, both of which are located in Nevada. South Korea's POSCO (NYSE:PKX), the world's fourth-largest steelmaker by output, owns the remaining 20 percent of Mount Hope.

Molybdenum is the only economically viable mineral at the site, and Mount Hope contains 1.3 billion pounds in the proven and probable categories, according to the company's 2010 investor presentation. General Moly envisions an open-pit mine on the property with a projected life of 44 years. The project will contain on-site crushing, milling and roasting facilities.

Strategic partners, presold production benefit Mount Hope

“Mount Hope is a large-scale, high-grade, lower-cost molybdenum deposit located in a stable jurisdiction,” said Kozak. “We also have excellent strategic partners that are both underpinning our financing and are committed customers for when we start production.”

POSCO, for example, remains an important strategic partner, according to Kozak. “We reached an agreement with POSCO in 2008,” he said. “They have already contributed $200 million to Mount Hope's development, including a $100-million payment in December 2012 after we received all permits required for the construction of Mount Hope. POSCO continues to see this asset as a long-life, stable, significant source of moly, which they need to produce high-grade steels.”

1 of 3

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs