General Moly (GMO) Shares Soar After Company Highlights Cheap Valuation

May 25, 2011 12:48 PM EDT

Shares of General Moly, Inc. (NYSE: GMO) are surging higher Wednesday after the company posted slides from the upcoming Goldman Sachs Basic Materials conference on their website.

In the slides, the company discussed two world-class molybdenum assets, Mt. Hope and Liberty. General Moly also highlighted partnership support from POSCO, Hanlong, ArcelorMittal and others. The company noted financing for Mt. Hope with China's Hanlong is in place.

On valuation, General Moly said with $15/lb moly prices (current price) NPV for GMO is $15.17 per share, or 3.75x the current price. The company also said the Mercator transaction values GMO at $7.05 per share, or 1.75x the current share price.

Shares of GMO last traded at $4.79, up 16.8% for the session.