Mt. Hope Project - Overview
The Mt. Hope project is one of the world’s largest and highest grade undeveloped molybdenum projects. The project is owned 80% by General Moly and 20% by POSCO through a joint venture. The Company has also established molybdenum off-take agreements with ArcelorMittal and SeAH Besteel Corporation. The Mt. Hope deposit contains 1.3 billion pounds of Proven and Probable reserves. General Moly completed a Bankable Feasibility Study on Mt. Hope in August of 2007 that indicated, on a 100% basis, an after-tax project Net Present Value (NPV) of $1.75 billion. General Moly’s 80% ownership in Mt. Hope represents approximately $1.4 billion of the Project’s NPV, which translates into approximately $17 per fully-diluted share. |
 General Moly and POSCO signing joint venture agreement. ( GMO - February 2008 ) |
General Moly is currently in the process of permitting, engineering, procuring equipment, and financing Mt. Hope. On a 100% basis, Mt. Hope will produce more than 38 million pounds annually over its first five years of operations and has a 44 year mine life. High grades in the early years of production are expected to make Mt. Hope one of the lowest cost producers. Mt. Hope’s economics are very sensitive to the molybdenum price, making General Moly one of the best investments to enter the moly market. General Moly and SeAH Besteel Corporation signing molybdenum off-take agreement. ( GMO - May 2008 ) |
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General Moly is currently in the process of permitting, engineering, procuring equipment, and financing Mt. Hope. On a 100% basis, Mt. Hope will produce more than 38 million pounds annually over its first five years of operations and has a 44 year mine life. High grades in the early years of production are expected to make Mt. Hope one of the lowest cost producers. Mt. Hope’s economics are very sensitive to the molybdenum price, making General Moly one of the best investments to enter the moly market. In November of 2007, General Moly entered into a molybdenum supply agreement with ArcelorMittal, the world’s largest steel company, for the sale of 6.5 million pounds (+/- 10%) of molybdenum annually for five years, beginning once Mt. Hope reaches production. The agreement provides for a floor price significantly above Mt. Hope’s operating costs and a discount to spot above that floor. The agreement is expected to provide General Moly with cash flow in excess of cash costs on those sold pounds and should support future debt service requirements. NPV values derived in the Company’s BFS were driven by molybdenum prices forecast by CPM Group, an independent commodities research and consulting firm. NPV Values for Mt.. Hope were also calculated utilizing flat prices. NPV sensitivities to flat price scenarios are displayed below in the chart (NPV Chart 1). At $15 per pound flat prices, on a 100% basis, Mt. Hope has an after-tax NPV of $1.4 billion, discounted at 8%. At today’s spot prices in excess of $30 per pound, Mt. Hope generates a consolidated NPV in excess of $4.5 billion. |
