Moly’s pleasing June quarterly results, shipping 270,824 wet ore tonnes from its Spinifex Ridge mine, contrasted sharply with the September quarter in which shipments dropped to 182,225t of ore.

The steep slide was a direct result of the volatile iron ore market experienced in the quarter forcing the company to scale back on its shipments.

At its worst, the spot price of the steel-making commodity dropped below $US90 per tonne in the quarter.

Reflecting the iron ore price drop, Moly’s gross sales revenue fell 48.1% quarter-on-quarter to $A14.8 million.

Free-on-board operating cash costs for the quarter averaged $57.10/t, down from $63.30/t in the June quarter.

In response to the price slump Moly took action to soften its impact on the company, with planned September shipments deferred until October while mining activities were slowed to reduce minesite operating costs.

Planned pre-strip mining activities were deferred until 2013 and the company has revised its sales target for the calendar year to 970,000t.

Moly also deferred discretionary mine capital expenditure until 2013 to preserve costs and the company’s financial position.

In the light of the iron ore price, the company said it was reviewing the merger and acquisition strategy previously announced as being a top priority for Moly.

It was also reviewing the potential to divest its Spinifex Ridge molybdenum copper operation.

Meanwhile, the 2011 decision to defer Spinifex Ridge development remains, with the project still on care and maintenance.

The company is continuing to monitor the iron ore market and opportunities to enter into hedging arrangements.

Despite a tough quarter, cash on hand totalled $54.5 million, up from $51.2 million.

Shares in Moly were unchanged in late morning trade at 13c.