Inactive Moly plunges as suspension looms
Moly Mines' shares have plunged after saying it expects be suspended from trading later this month.
The company said it would be unable to meet an April 22 deadline imposed by the Australian Securities Exchange to show it had sufficient operations to justify continued quotation.
Moly also said its acting chief executive and acting chief financial officer would leave the company this month as part of overhead cuts.
It shares were down 3.2 cents, or 34 per cent, to 6.2 cents at 11.41am.
Chairman Nelson Chen said the anticipated suspension was going to be temporary. "Cash is king and patience is a virtue," he said.
"We are very well positioned in the market to go for quality projects in accordance with our strategy, Mr Chen said. "Every effort will be made to ensure we secure key assets best suited to the future growth profile of the company."
Since completing a mine gate sale agreement for iron ore produced at the Spinifex Ridge mine, Moly has been pursuing merger and acquisition deals.
"The board … has ultimately rejected several opportunities for not being in the best interests of Moly given the assets and terms available," the company said.
Therefore, it could not meet the ASX's six-month timeframe to avoid suspension.
Acting CEO David Pass will be replaced Graeme Kininmonth, currently health, safety and environment manager. Riccardo Vittino will replace Allen Howells as acting CFO.
