PolyMet Mining Corp. (“PolyMet” or the “company”) TSX: POM; NYSE
MKT: PLM – today reported that it has filed its financial results
for the three and six months ended June 30, 2018. 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.
2018 Highlights
- In June 2018, the company and the U.S.
Forest Service exchanged titles to federal and private lands,
completing the land exchange and giving the company control over
both surface and mineral rights in and around the NorthMet ore
body;
- In March 2018, the company issued an
Updated Technical Report under NI 43-101 incorporating process
improvements, project improvements and environmental controls
described in the Final Environmental Impact Statement and draft
permits. The update also included detailed capital costs, operating
costs and economic valuations for the mine plan being permitted as
well as potential future production opportunities;
- In March 2018, the company and Glencore
agreed to extend the term of outstanding debentures until March 31,
2019, reduce the interest rate on the outstanding debentures and
make available up to $80 million in additional funding. Proceeds
are being used to complete permitting, purchase wetland credits,
advance detailed engineering and perform certain early works to
prepare the site for construction;
- In January 2018, the Minnesota
Department of Natural Resources released the draft Permit to Mine
for a public review and comment period, which has now closed;
and
- In January 2018, the Minnesota
Pollution Control Agency released the draft water quality permit,
draft section 401 certification and draft air emissions permit for
public review and comment periods, which have all closed.
Goals and objectives for the next
twelve monthsThe permitting process is managed by the
regulatory agencies and, therefore, timelines are not under PolyMet
control, however, decisions by the MDNR and MPCA are expected by
the end of the year. Given these circumstances, PolyMet’s
objectives include:
- Favorable decision by the U.S. Army
Corps of Engineers on the Final Record of Decision and 404 wetlands
permit under the Clean Water Act;
- Favorable decisions on final state
permits (Permit to Mine, air, water, and dam safety permits);
- Completion of project implementation
plan; and
- Execution of a construction finance
plan, subject to typical conditions precedent such as receipt of
key permits.
Key Balance Sheet Statistics
(in ‘000 US dollars)
Balance
Sheet June 30, 2018
December 31, 2017 Cash & equivalents $ 17,595 $
6,931 Working capital (see note) (167,309) (138,057) Total assets
433,934 409,042 Total liabilities 245,178 210,367 Shareholders’
equity $ 188,756 $ 198,675
Note: Working capital deficit
largely reflects Glencore debentures maturing on or before March
31, 2019.
At June 30, 2018, PolyMet had cash of $17.595 million compared
with $6.931 million at December 31, 2017. An additional $60 million
of debentures is available from Glencore as described above.
As of June 30, 2018, PolyMet had spent $128.642 million on
environmental review and permitting since the NorthMet Project
moved from exploration to development stage.
Key Income and
Cash Flow Statement Statistics
(in ‘000 US dollars, except per share
amounts)
Three months ended
Six months ended Income and Cash Flow Statement
June 30, July 31, June 30,
July 31, 2018
2017 2018 2017
General & administrative expense excluding non-cash
share-based compensation $ 1,233 $ 1,408 $ 2,824 $ 2,536
Non-cash share-based compensation
276
672
1,455
812
Other expenses: Finance & other 594 608 1,505 1,241
Non-cash loss on land exchange 553 - 553 - Non-cash loss on
intangible disposal - - - 1,324 Non-cash loss on debenture
modification - - 4,109 - Loss for the period: 2,656 2,688
10,446 5,913 Other comprehensive loss - 17 - 5
Loss per share
0.01
0.01
0.03
0.02
Investing activities: NorthMet property $ 5,383 $ 6,166 $
10,381 $ 11,103
Weighed average shares outstanding
320,425,860
318,708,771
320,201,128
318,628,939
Loss for the three months ended June 30, 2018, was $2.656
million compared with $2.688 million for the prior year period.
General and administrative expenses for the three months ended June
30, 2018, excluding non-cash share-based compensation, were $1.233
million compared with $1.408 million for the prior year period.
Other expenses were $1.147 million, including a one-time non-cash
loss of $0.553 million on the land exchange, compared with $0.608
million for the prior year period.
Loss for the six months ended June 30, 2018, was $10.446 million
compared with $5.913 million for the prior year period largely due
to non-cash items. General and administrative expenses for the six
months ended June 30, 2018, excluding non-cash share-based
compensation, were $2.824 million compared with $2.536 million for
the prior year period. Other expenses were $6.167 million,
including a one-time non-cash loss of $4.109 million on the
debenture modification, compared with $2.565 million for the prior
year period.
PolyMet invested $5.383 million cash into its NorthMet Project
during the three months ended June 30, 2018, compared with $6.166
million in the prior year period, and invested $10.381 million
during the six months ended June 30, 2018, compared with $11.103
million in the prior year period.
About PolyMetPolyMet 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 DisclosuresThis 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 risk factors and other
considerations underlying forward-looking statements discussed in
PolyMet’s most recent Annual Report on Form 40-F for the
fiscal year ended December 31, 2017, and in our other filings with
Canadian securities authorities and the U.S. Securities and
Exchange Commission.
The Annual Report on Form 40-F also 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 Corp.MediaBruce RichardsonCorporate
CommunicationsTel: +1 (651)
389-4111brichardson@polymetmining.comorInvestor
RelationsTony GikasInvestor RelationsTel: +1 (651)
389-4110investorrelations@polymetmining.com
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