AUD Audiotech Healthcare Corporation

Moly Mines Limited (TSX:MOL)(ASX:MOL) provides the following market update.

Spinifex Ridge Iron Ore Project

The Company's maiden shipment of Spinifex Ridge Iron Ore has been successfully
completed with the ore having been discharged at the port of Qingdao, China.
Provisional sales revenue was received in early January with the balance due
upon completion of outturn analysis at the port.


The vessel MV Father Neptune carried 54,500 wet tonnes (52,799 dry tonnes) of
iron ore fines grading 59.1% Fe with a final sales price of approximately US$150
per dry metric tonne CFR China. The next shipment of iron ore is expected to
occur in mid February as mine production ramps up to achieve regular monthly
shipments.


Spinifex Ridge Molybdenum / Copper Project Financing

In December 2010 the Company announced that it had been advised by its major
shareholder, Hanlong Mining Investment Pty Ltd, that the project finance
facility documentation and approvals will not be completed to the point that it
is available for drawdown by 31 January 2011 as required pursuant to the
Subscription Agreement dated 19 October 2009, as amended.


The non-Hanlong directors of Moly Mines have sought corporate and legal advice
and they continue to consider an extension to the deadline. The market will be
advised of the outcome before 31 January 2011. Moly Mines awaits receipt of the
Term Sheets from the banking syndicate for the US$466 million bank loans.


Like most prospective Australian resources projects, the Spinifex Ridge
Molybdenum / Copper Project has been negatively impacted by the recent strong
appreciation in the Australian dollar ("AUD") against the United States dollar
("USD"), particularly since 1 December 2010. The metal products from the future
mine, molybdenum, copper and silver, are priced in USD whilst most of the
forecast operating costs are denominated in AUD. The appreciation in the AUD has
resulted in a projected decrease in future project revenues measured in AUD at
31 December 2010 by up to 25%. This has a pronounced effect on forecast future
project cashflows and the project's valuation and may present challenging
economic hurdles for the project.


There has already been some depreciation in the AUD against the USD since 31
December 2010. It should also be noted that metal price fluctuations can also be
just as rapid, both down and up. Molybdenum price has particularly moved
significantly twice in recent times, from US$33/lb to US$12/lb in 2008, and from
US$7/lb to US$42/lb in 2004/5. It has currently been on an upward trend since
July 2010 to the current price of US$17.30/lb.


The Company's financial model being used in the financing process for the
Spinifex Ridge Molybdenum / Copper Project is also being continually adjusted to
reflect other variables, such as the planned fixed price Engineering,
Procurement and Construction (EPC) contract for the mine's processing facilities
and infrastructure. This contract is currently being negotiated with Chinese and
Australian engineering groups, as are the banking terms to be agreed with the
Chinese banking syndicate and Hanlong for the US$500 million project financing
facilities. At the time of completing these arrangements, the financial model
will reflect independent molybdenum price forecasts and other commodity prices
and economic parameters existing at that time including the foreign exchange
forward curve. The ability of the Company to complete the Spinifex Ridge
Molybdenum / Copper Project financing process will likely be dependent on an
improvement in both the foreign exchange outlook and molybdenum prices above
current levels.


With respect to the Company's 31 December 2010 financial statements, it is
likely that applying the foreign exchange forward curve at 31 December 2010 to
the forecast project cashflows will lead to an adjustment to the carrying value
of the project. Total expenditure capitalized to Mine, Properties and
Development in the Company's balance sheet at 31 December 2010 was approximately
A$144 million. The quantum of any adjustment to the project's carrying value
will be subject to audit review processes by the Company's Audit and Risk
Management Committee in conjunction with its external auditor.


This news release includes "forward-looking statements" as that term within the
meaning of securities laws of applicable jurisdictions. Forward-looking
statements involve known and unknown risks, uncertainties and other factors that
are in some cases beyond Moly Mines' control. These forward- looking statements
include, but are not limited to, all statements other than statements of
historical facts contained in this news release, including, without limitation,
those regarding Moly Mines' future expectations. Readers can identify
forward-looking statements by terminology such as "aim," "anticipate," "assume,"
"believe," "continue," "could," "estimate," "expect," "forecast," "intend,"
"may," "plan," "potential," "predict," "project," "risk," "should," "will" or
"would" and other similar expressions. Risks, uncertainties and other factors
may cause Moly Mines' actual results, performance, production or achievements to
differ materially from those expressed or implied by the forward-looking
statements (and from past results, performance or achievements). These factors
include the failure to complete and commission the mine facilities, processing
plant and related infrastructure in the time frame and within estimated costs
currently planned; variations in global demand and price for molybdenum and
copper; fluctuations in exchange rates between the U.S. dollar and the
Australian dollar; failure to recover the resource and reserve estimates of the
Project; the failure of Moly Mines' suppliers and service providers to fulfill
their obligations under construction, supply and tolling agreements; unforeseen
geological, physical or meteorological conditions, natural disasters or
cyclones; changes in the regulatory environment, industrial disputes, labor
shortages, political and other factors; the inability to obtain additional
financing, if required, on commercially suitable terms; and global and regional
economic conditions. Readers are cautioned not to place undue reliance on
forward-looking statements. We assume no obligation to update such information

Grafico Azioni Audiotech Healthcare Corporation (TSXV:AUD)
Storico
Da Giu 2024 a Lug 2024

Grafico Azioni Audiotech Healthcare Corporation (TSXV:AUD)
Storico
Da Lug 2023 a Lug 2024