PolyMet Mining Corp (“PolyMet” or the “Company”) TSX: POM; NYSE
MKT: PLM – today reported that it has filed its financial results
for the three months ended April 30, 2017. PolyMet controls 100
percent of the development-stage NorthMet copper-nickel-precious
metals ore-body and the nearby Erie Plant, located near Hoyt Lakes
in the established mining district of the Mesabi Iron Range in
northeastern Minnesota.
The financial statements have been filed at
www.polymetmining.com and on SEDAR and EDGAR and have been prepared
in accordance with International Financial Reporting Standards. All
amounts are in U.S. funds. Copies can be obtained free of charge by
contacting the Corporate Secretary at First Canadian Place, 100
King Street West, Suite 5700, Toronto, Ontario M5X 1C7 or by e-mail
at info@polymetmining.com.
HIGHLIGHTS OF FISCAL 2017 AND FISCAL
2018 TO-DATE
- On March 3, 2016, the state determined
that the Final Environmental Impact Statement addresses the
objectives defined in the EIS scoping review, meets procedural
requirements and responds appropriately to public comments. The
30-day period allowed by law to challenge the state’s decision
passed without any legal challenge being filed. The Final EIS
demonstrates that the NorthMet Project can be constructed and
operated in compliance with environmental and human health
standards.
- On June 2, 2016, the Company agreed to
issue up to an additional $14.0 million secured non-convertible
debentures to Glencore AG, a wholly owned subsidiary of Glencore
plc (together “Glencore”), to fund permitting and general corporate
purposes. The debentures are on similar terms as the existing
non-convertible senior secured debentures.
- On July 1, 2016, the Company repaid the
$4.0 million initial principal loan from the Iron Range Resources
and Rehabilitation Board.
- On July 11, 2016, the Company submitted
applications for water-related permits required to construct and
operate NorthMet.
- On August 2, 2016, the Company renewed
its request for Water Quality Certification under Section 401 of
the Clean Water Act.
- On August 24, 2016, the Company
submitted the air quality permit application required to construct
and operate NorthMet.
- In October 2016, the Company closed, in
two tranches, a private placement of 40,074,418 units for gross
proceeds of $30.055 million which included pro rata participation
by Glencore.
- On November 3, 2016, the Company
submitted the Permit to Mine application required to construct and
operate NorthMet.
- On December 15, 2016, the Company
received the American Exploration and Mining Association’s
Environmental Excellence Award for its responsible development of
the NorthMet Project.
- On December 20, 2016, the Memorandum of
Agreement of the Section 106 Consultation under the National
Historic Preservation Act was signed by the statutory parties.
- On January 9, 2017, the USFS issued its
Final Record of Decision authorizing the land exchange.
- Loss for the three months ended April
30, 2017, was $3.225 million compared with $2.352 million for the
prior year period. General and administrative expenses for the
three months ended April 30, 2017, excluding non-cash share-based
compensation, were $1.128 million compared with $1.213 million for
the prior year period. Other expenses were $1.957 million,
including a one-time non-cash loss of $1.324 million on the
disposal of wetland credit intangibles, compared with $0.512
million for the prior year period.
- At April 30, 2017, PolyMet had cash of
$11.865 million compared with $18.674 million at January 31, 2017.
The Company is in discussion with Glencore regarding the
convertible and non-convertible senior secured debentures currently
due to be repaid upon the earlier of availability of construction
finance or March 31, 2018.
- PolyMet invested $4.937 million cash
into its NorthMet Project during the three months ended April 30,
2017, compared with $6.868 million in the prior year period.
- As of April 30, 2017, PolyMet had spent
$121.547 million on environmental review and permitting, of which
$115.096 million has been spent since the NorthMet Project moved
from exploration to development stage.
GOALS AND OBJECTIVES FOR THE NEXT
TWELVE MONTHS
The environmental review and permitting process is managed by
the regulatory agencies and, therefore, timelines are not within
PolyMet’s control. Given these circumstances, PolyMet’s objectives
include:
- Completing the approved land exchange
with the USFS and transferring of title to the surface rights over
and around the NorthMet mineral rights to PolyMet.
- Obtaining a decision by the state on
401 Water Quality Certification and U.S. Army Corps of Engineers
Final ROD and 404 wetlands permit under the Clean Water Act.
- Publication of draft state permits
(Permit to Mine, air, water, dam safety and water appropriation
permits) for public comment.
- Decisions on state permit
issuances.
- Completion of definitive cost estimate
and project update following permits.
- Completion of project implementation
plan.
- Repayment, restructuring, and/or
conversion of Glencore loans.
- Completion of construction finance plan
including commitment of debt prior to the issuance of permits,
subject to typical conditions precedent such as receipt of key
permits.
“The state continues its careful and thorough review of the
permit applications PolyMet has submitted,” said Jon Cherry,
president and CEO. “In addition to responding to technical
questions from the state and federal agencies about the permit
applications, we are focused on conducting pre-construction
engineering.”
More detail on the status of permit review can be found at:
http://polymet.mn.gov/news.html.
Key Statistics
(in ‘000 US dollars, except per share amounts)
Balance Sheet April 30, 2017
January 31, 2017
Cash & equivalents $ 11,865 $ 18,674 Working
capital (103,419) 16,267 Total assets 391,972 389,049 Total
liabilities 187,583 181,720 Shareholders’ equity $
204,389 $ 207,329
Three months ended April 30, Income Statement
2017
2016 General & administrative expense excluding
non-cash share-based compensation $ 1,128 $ 1,213 Non-cash
share-based compensation 140 627 Other Expenses: Finance &
Other 633 512 Non-cash loss on disposal of intangibles
1,324
-
Loss before tax: 3,225 2,352 Other Comprehensive (Income)
(12) (56)
Loss per share 0.01
0.01 Investing Activities NorthMet Property $
4,937 $ 6,858 Weighted average shares outstanding
318,545,519 277,679,075
About PolyMet
PolyMet Mining Corp. (www.polymetmining.com) is a publicly
traded mine development company that owns 100 percent of Poly Met
Mining, Inc., a Minnesota corporation that controls 100 percent of
the NorthMet copper-nickel-precious metals ore body through a
long-term lease and owns 100 percent of the Erie Plant, a large
processing facility located approximately six miles from the ore
body in the established mining district of the Mesabi Iron Range in
northeastern Minnesota. Poly Met Mining, Inc. has completed its
Definitive Feasibility Study. The NorthMet Final EIS was published
in November 2015, preparing the way for decisions on permit
applications. NorthMet is expected to require approximately two
million hours of construction labor, create approximately 360
long-term jobs directly, and generate a level of activity that will
have a significant multiplier effect in the local economy.
PolyMet Disclosures
This news release contains certain forward-looking statements
concerning anticipated developments in PolyMet’s operations in the
future. Forward-looking statements are frequently, but not always,
identified by words such as “expects,” “anticipates,” “believes,”
“intends,” “estimates,” “potential,” “possible,” “projects,”
“plans,” and similar expressions, or statements that events,
conditions or results “will,” “may,” “could,” or “should” occur or
be achieved or their negatives or other comparable words. These
forward-looking statements may include statements regarding the
ability to receive environmental and operating permits, job
creation, and the effect on the local economy, or other statements
that are not a statement of fact. Forward-looking statements
address future events and conditions and therefore involve inherent
known and unknown risks and uncertainties. Actual results may
differ materially from those in the forward-looking statements due
to risks facing PolyMet or due to actual facts differing from the
assumptions underlying its predictions.
PolyMet’s forward-looking statements are based on the beliefs,
expectations and opinions of management on the date the statements
are made, and PolyMet does not assume any obligation to update
forward-looking statements if circumstances or management’s
beliefs, expectations and opinions should change.
Specific reference is made to PolyMet’s most recent Annual
Information Form for the fiscal year ended January 31, 2017 and in
other filings with Canadian securities authorities and the U.S.
Securities and Exchange Commission, including the Company’s Form
6-K providing information with respect to operations for the three
months ended April 30, 2017, for a discussion of some of the risk
factors and other considerations underlying forward-looking
statements. The Annual Information Form contains the Company’s
mineral resource and other data as required under National
Instrument 43-101.
The TSX has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.
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PolyMet Mining CorpMediaBruce Richardson, +1
651-389-4111Corporate
Communicationsbrichardson@polymetmining.comorInvestor
RelationsJenny Knudson, +1 651-389-4110Investor
Relationsjknudson@polymetmining.com
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