Pat Rogers and Zach Spenser of General Moly came before the Eureka County Commission this week to give an update on the Mt. Hope project and the company.
Rogers reported Mike Iannacchione, Vice President and General Manager of Mt. Hope, and Pat Malone, Chief Engineer, have been laid off as a function of the current depressed molybdenum price. He described them as “two great professionals we’re sorry to lose.”
Rogers said the deposit remains world-class and will be developed when the commodity price improves until which time the project has become difficult to finance. General Moly is finalizing the deal with new partner AMER International.
Rogers said the layoffs are being implemented “to cut costs” and doesn’t know “what it means to the Eureka office” as the company considers the practicality of leaving that open while the company conserves cash “to ride out” the low commodity price cycle. Three people will remain on site but not in the Eureka office. “We get financed, get back in construction.”
Chairman J.J. Goicoechea asked about whether pipeline will be laid and Rogers said they’ll leave it stock-piled “as is.” Rogers said with financing they’ll start building.
Beutel asked how they’re ready to go given the status of the water rights.
Rogers said, “Those water rights can be regranted in the timeline” but Rogers said it all depends on when the prices come back.
Beutel asked whether they’d be meeting with the Protestants and the Water Engineer when it’s time to go forward and Rogers said he didn’t know and “it’s a little early.” Rogers said his understanding is that the State Engineer will get direction from the District Court and is confident they’ll get their water rights.