Spinifex Ridge in doubt

Moly Mines molybdenum project is in doubt as the Australian dollar rises.

Moly Mines molybdenum project is in doubt as the Australian dollar rises.

The miner has stated that completion of the Spinifex Ridge project is reliant on more favourable exchange rates as well as higher molybdenum prices.

The metal generated from the mine is to be priced in US dollars, whereas operating costs are denominated in Australian dollars.

The consistently increasing Aussie dollar has seen projected revenues slashed by as much as quarter, the miner said.

“This has a pronounced effect on forecast future project cashflows and the projects valuation and may present challenging economic hurdles for the project,” it said.

This announcement from the company comes on the back of unresolved delays in financing for its Pilbara based project.

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