Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

February 25, 2011 08:55 ET

Moly Mines Reports Spinifex Ridge Iron Ore Shipments Recommence After Cyclone

TORONTO, ONTARIO--(Marketwire - Feb. 25, 2011) - Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to advise a shipment of Spinifex Ridge Iron Ore Fines has this evening sailed from Port Hedland, destination China.

The vessel has been loaded with 64,472 wet metric tonnes grading approximately 59% iron. Continued strength in global iron ore markets will result in another strong sales price for this cargo with final pricing expected to be in the range of US$160-170/T CFR China if prices remain constant during the 12 day voyage to the discharge port.

The shipment has been achieved despite two cyclones and periods of torrential rain that have disrupted mining and shipping operations throughout the Pilbara and at Port Hedland in the last 8 weeks. This cargo will be one of the first exports from the Pilbara since Cyclone Carlos forced the closure of the region's ports earlier this week.

Mining rates at Spinifex Ridge have exceeded ramp-up expectations in February, despite some lost time caused by inclement weather. The mine production rate is now expected to reach 1 million tonnes per annum early in the second quarter, well ahead of the planned date of July 2011.

Total iron ore production for 2011 is budgeted at 820,000 tonnes at an average free on board cost of A$60-70 per tonne, before freight costs and state government royalties.

Monthly shipments are now scheduled for the remainder of the calendar year and will increase in size to approximately 80,000 tonne shipments in April. Planning for the March 2011 shipment has commenced with a shipment likely to be booked for the 3rd week of March.

Spinifex Ridge Molybdenum / Copper Project Financing

With the Chinese New Year over, the Company has resumed talks with the Hanlong Group and the banking syndicate for the US$466 million Project Finance Loan Facility. The Hanlong Group are endeavoring to secure the commitment letter from China Export and Import Bank which matches the China Development Bank commitment letter received in January 2011.

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.

Contact Information

  • Moly Mines Limited
    Natalie Frame
    Investor Relations
    +1 416 777 1801
    +1 416 371 7541
    info@molymines.com
    or
    Moly Mines Limited
    Derek Fisher
    Managing Director
    +61 8 94293300
    www.molymines.com