The Investment Doctor • 16 Comments
Apr. 17, 2015, 9:47 AM
- General Moly (GMO +53.7%) surges higher after announcing a strategic partnership with AMER International Group to become a major shareholder, which will help its ability to secure full project financing for its Mt. Hope Project.
- China-based AMER says it will work with GMO to procure and support a $700M senior secured term loan from a major Chinese bank or banks for development of Mt. Hope, and says it will guarantee the bank loan.
- GMO estimates Mt. Hope molybdenum production will total 16.5M lbs./year for the first five years.
Mar. 23, 2015, 8:42 AM
- Molycorp (NYSE:MCP) +22.2% premarket after 60 Minutes aired a report last night on the importance of rare earth elements.
- The basis of the report is that modern U.S. life - from smartphones to cars to defense missiles - depends on rare earth elements, but that China dominates the industry
- Investors may be hoping the telecast sparks renewed interest in legislation in Congress calling for subsidies for the U.S. rare earths industry.
- Also on watch: REE, AVL, GSM, GMO, OSN, REMX
Mar. 26, 2014, 3:38 PM
- Analysts say rare earth elements will continue to fall this year after China loses a trade dispute over its export controls, as new mines boost output and while demand in high tech products disappoints.
- A price war could break out after the U.S., EU and Japan won their case over export restrictions they said gave Chinese companies an unfair competitive edge in key sectors, says Ryan Castilloux of Adamas Intelligence; China's "only tangible defense becomes competing head-to-head on price with emerging global producers."
- Investors already are concerned about excess supply as Molycorp (MCP -3%) and Lynas (LYSCF -12.5%) boost output at their new mines; MCP aims to boost output to 20K metric tons/year after producing ~1K metric tons in Q4 2013.
- Also: REE -0.6%, AVL -2.4%, GMO -3.7%.
Dec. 26, 2013, 12:45 PM
Dec. 5, 2013, 10:49 AM
- General Moly (GMO +7.9%) forecasts operating costs for its Mt. Hope projec; GMO expects direct operating costs over the first full five years of operation to average $6.28/lb. and costs applicable to sales to average $7/lb., including anticipated royalty payments calculated at $15/lb. of molybdenum, which the company regards as a sustainable long-term price.
- Economics for GMO's 80% ownership in Mt. Hope anticipates an after-tax net present value, discounted at 8%, of $707M and an internal rate of return of 17.6%.
Nov. 13, 2013, 10:05 AM
- Copper futures tumble to their lowest level in more than three months on concerns about the pace of Chinese economic growth; December futures fall more than $0.06 (-2%) to $3.17/lb., hitting their lowest level since late July.
- Copper and other base metals are suffering from rumors that the China will lower its 2014 growth target to 7%, says Commerzbank commodities strategist Eugen Weinberg.
- Meanwhile, China's eagerly awaited Third Plenum offered little support for markets, outlining only vague economic goals.
- ETFs: JJC, CPER, CUPM.
- U.S.-traded copper miners: FCX -0.8%, SCCO -1.8%, TCK, GMO, SVBL, TLR.
Sep. 10, 2013, 2:30 PM
- General Moly (GMO -5.5%) shares slide after the development stage molybdenum miner last night announced a cost cutting program including pay cuts for the CEO and board members.
- GMO says the move is aimed at preserving liquidity while pursuing financing options for the Mt. Hope Project; it will continue to maintain its permits and preserve the capacity to restart engineering, procurement and construction at Mt. Hope after completing full project financing.
Mar. 21, 2013, 6:33 PM
Mar. 21, 2013, 12:57 PM
Mar. 20, 2013, 5:39 PM
Mar. 20, 2013, 5:13 PM
General Moly (GMO) -6.1% AH on news of the suspension of its $665M loan being negotiated with China Development Bank for work on its Mt. Hope molybdenum project in Nevada. The chairman of the group arranging the loan reportedly has been detained by Chinese authorities.| Mar. 20, 2013, 5:13 PM | 2 Comments
Feb. 26, 2013, 8:37 AM
General Moly (GMO) -9.9% premarket after disclosing in an SEC filing that environmental activist groups had filed suit against the Bureau of Land Management challenging BLM's issuance of a Record of Decision for GMO's Mt. Hope project in Nevada. GMO says an unfavorable outcome could have a material adverse effect on its finances.| Feb. 26, 2013, 8:37 AM | 1 Comment
Feb. 25, 2013, 5:52 PM
Sep. 14, 2012, 3:20 PM
The Street appears to be applauding the recent executive appointments at General Moly (GMO +4.2%) announced today. The company says it's selected Michael Iannacchione as general manager of the company's Mt. Hope project, and Patrick C. Rogers as vice president of permitting & environmental compliance. It also promoted Zach Spencer to director of external communications.| Sep. 14, 2012, 3:20 PM
Jun. 14, 2012, 9:19 AM
General Moly (GMO) +10.3% premarket on news that a Nevada State District Court affirmed the Nevada State Engineer's approval of water rights for the Mt. Hope molybdenum mine and issuance of Mt. Hope water permits.| Jun. 14, 2012, 9:19 AM