General Moly Incurs Q1 Net Loss of $2.4 Million

General Moly Inc. (TSX:GMO,NYSEMKT:GMO) announced yesterday its unaudited financial results for the first quarter of 2014, commenting that it incurred a net loss of $2.4 million, or $0.03 per share. That’s down from its $3-million net loss in the year-ago period.

As quoted in the press release:

Excluding restricted cash, the Company’s cash balance at March 31, 2014 was approximately $17 millioncompared to $22 million at December 31, 2013. During the first quarter, cash use of $5 million was the result of $3 million spent on Mt. Hope Project development costs (engineering, procurement, owner’s cost, and reclamation bond premiums) as well as $2 million in general and administrative expenses and Liberty Projectrelated expenditures. In December 2012, the Company and POS-Minerals, as the members of Eureka Moly, LLC (‘EMLLC’), agreed to hold, as restricted cash, $36 million due to the Company, of the approximately $100 million received from POS-Minerals’ December, 2012 contributions. These funds will be held in a reserve account until the Company arranges full project financing for its 80% share of Mt. Hope Project construction cost.

Bruce D. Hansen, General Moly’s CEO, commented:

We are pleased to see the recent rise in underlying molybdenum prices from less than $10 per pound at the end of February to $13 per pound currently. Molybdenum pricing recently reached a 21-month high, supported by improved demand and tighter supply. We feel the molybdenum price is entering a more sustainable long term level.

Click here to read the full General Moly Inc. (TSX:GMO,NYSEMKT:GMO) press release.