Platts reported that General Moly has enough cash to last at least through the third quarter of this year and that it can still build its Mt Hope mine in Nevada.

General Moly said that it ended 2008 with an unaudited consolidated cash balance of USD 91 million, down from USD 121 million at the end of the third quarter. It added that it maintained the ability to construct its Mt Hope, Nevada, primary molybdenum mine within 15 to 18 months of receiving all necessary permits.

Moly said that it was continuing to evaluate several potential sources for around USD 50 to 150 million in interim financing, including additional support from strategic partners. This may also include the possibility of a sale of another minority interest in the Mt Hope project.

General Moly reiterated that Credit Suisse and Barclays were continuing to work toward the ultimate bank project financing.
It also said that lower spending levels were likely as a result of successful negotiations with, and support from, vendors whose progress payments have been deferred and equipment manufacturing slots swapped.

General Moly made no mention about the impact of the collapse in molybdenum oxide prices in Q4 2008, which fell from above USD 30 per pound to around USD 9 per pound and have shown no recovery since, on its ability to finance and construct the mine.

(Sourced from www.platts.com)