LAKEWOOD, Colo., Jan. 18, 2018 /PRNewswire/ -- General Moly,
Inc. (the "Company" or "General Moly") (NYSE American and TSX:
GMO), the only western-exchange listed, pure-play molybdenum
mineral development company, reports that the recent molybdenum
spot price has topped $11 per pound,
a level last seen in 2014, and over 60% higher than the year-end
2016 price of $6.70 per pound.
Molybdenum was one of the best performing metals in price
appreciation in 2017, according to the CPM Group, a leading
commodities research and consulting firm in New York. The molybdenum spot price
strengthened during 2017, supported by increased specialty steel
output, driven by the global recovery in oil and gas drilling.
During 2017, molybdenum spot price climbed to the $8 - $9 per pound
range during August through November, before hitting double digits
early this year.
Molybdenum Demand Rising from Oil & Gas End Use
Commenting on the molybdenum outlook for 2018, General Moly
Chief Executive Officer Bruce D.
Hansen said, "We are excited by the robust performance in
the molybdenum (moly) spot price in the new year. Moly is the
premier alloy to toughen steel and make it corrosion resistant,
which is critically important in all aspects of drilling,
production, refining, storage and transportation in the oil and gas
industry. However, moly prices remain volatile, and with the
continued recovery of the petroleum industry, we anticipate the
potential for generally higher prices going forward in 2018."
In December 2017, the Baker Hughes
worldwide drill rig count increased 18% to 2,089 rigs from year ago
levels and jumped 49% from the low point seen in mid-2016. The West
Texas Intermediate oil price has risen 69% from $38.10 per barrel at year end 2016 to
$64.30 on January 15, 2017, while the NYMEX natural gas
price has risen 58% from $2.03 per
MMBtu to $3.20 over the same
period.
In addition, steel consumption especially for stainless and high
strength steels is expected to be driven by global economic
expansion. The World Bank projects global economic growth at a
solid 3.1% for 2018 after a better than expected 2017
performance.
China uses approximately a
third of global molybdenum and produces more than one-third of
global molybdenum supply. China's
continued strong steel fabrication demand led to rising imports of
molybdenum concentrate in late 2017, according to CPM.
Molybdenum Supply
CPM stated that nearly 63% of molybdenum supply is derived as a
by-product mostly from copper miners while the remainder of
molybdenum is sourced from primary producers, mostly in
China. While total molybdenum mine
supply (by-product and primary) increased to 561 million pounds in
2017 from 510 million pounds in 2016, according to CPM, molybdenum
by-product production is expected to soften in 2018, notably from
Chile.
Anticipating tightening supply of molybdenum in 2018,
Catherine Virga, Director of the CPM
Group, commented "We believe that the major copper producers are
already maximizing their molybdenum by-product production and that
increases in by-product molybdenum output in 2018 will be limited.
Furthermore, strict environmental controls including inspections
and production curtailments are expected to continue in
China, hampering growth and
putting upward pressure on production costs."
Moly Bits
Further background regarding the impact on the molybdenum market
from a strengthening global steel market and a rebounding oil and
gas industry are available in the Company's blog called Moly Bits
available on the Company's website.
About General Moly
General Moly is a U.S.-based, molybdenum mineral exploration and
development company listed on the NYSE American (NYSE AMER),
recently known as the NYSE MKT and former American Stock Exchange,
and the Toronto Stock Exchange under the symbol GMO. The Company's
primary asset, an 80% interest in the Mt. Hope Project located
in central Nevada, is considered
one of the world's largest and highest grade molybdenum deposits.
Combined with the Company's wholly-owned Liberty Project, a
molybdenum and copper property also located in central Nevada, General Moly's goal is to become the
largest primary molybdenum producer in the world.
Molybdenum is a metallic element used primarily as an alloy
agent in steel manufacturing. When added to steel, molybdenum
enhances steel strength, resistance to corrosion and extreme
temperature performance. In the chemical and petrochemical
industries, molybdenum is used in catalysts, especially for cleaner
burning fuels by removing sulfur from liquid fuels, and in
corrosion inhibitors, high performance lubricants and polymers.
Contact:
Scott
Roswell
(303) 928-8591
info@generalmoly.com
Website: www.generalmoly.com
Forward-Looking Statements
Statements herein that are not historical facts are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act, as amended and Section 21E of the Securities
Exchange Act of 1934, as amended and are intended to be covered by
the safe harbor created by such sections. Such
forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from those projected, anticipated, expected, or implied by the
Company. These risks and uncertainties include, but are not
limited to metals price and production volatility, global economic
conditions, currency fluctuations, increased production costs and
variances in ore grade or recovery rates from those assumed in
mining plans, exploration risks and results, political, operational
and project development risks, including the Company's ability to
obtain a re-grant of its water permits and Record of Decision,
ability to maintain required federal and state permits to continue
construction, and commence production, ability to raise required
project financing, ability to respond to adverse governmental
regulation and judicial outcomes, and ability to maintain and /or
adjust estimates related to cost of production, capital, operating
and exploration expenditures. For a detailed discussion of
risks and other factors that may impact these forward looking
statements, please refer to the Risk Factors and other discussion
contained in the Company's quarterly and annual periodic reports on
Forms 10-Q and 10-K, on file with the SEC. The Company
undertakes no obligation to update forward-looking statements.
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SOURCE General Moly, Inc.