PolyMet Reports Results for Period Ended December 31, 2017
March 28 2018 - 8:26AM
Business Wire
PolyMet Mining Corp (“PolyMet” or the “company”) TSX: POM; NYSE
MKT: PLM – today reported that it has filed its financial results
for the eleven months ended December 31, 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.
More detail on the status of permit review can be found at:
http://polymet.mn.gov/news.html.
Highlights of 2017 and 2018
to-date
- In January 2017, the United States
Forest Service issued its Final Record of Decision authorizing a
land exchange to transfer title of the surface rights over and
around the NorthMet mineral rights to PolyMet in exchange for
certain other lands owned by PolyMet.
- In August 2017 and September, the
Minnesota Department of Natural Resources released six draft water
appropriation permits and two draft dam safety permits for 30-days
of public review and comment which have all closed.
- In September 2017, the company issued
and committed to issue to Glencore secured debentures with a total
principal amount of $20 million.
- In October 2017, the company entered
into an agreement with EIP Credit Co., LLC to reserve wetland bank
credits for the NorthMet Project.
- In November 2017, the U.S. House of
Representatives approved bipartisan legislation introduced by Rep.
Rick Nolan, D-MN-8 to ratify the previously approved land exchange
between PolyMet and the U.S. Forest Service. This bill was advanced
to the U.S. Senate for consideration.
- In December 2017, the Board of
Directors approved a change to the year end from January 31 to
December 31 resulting in an eleven month transition year.
- In January 2018, the MDNR released the
draft Permit to Mine and the Minnesota Pollution Control Agency
released the draft water quality permit, draft section 401
certification, and draft air emissions permit. The public review
and comment periods for these draft permits, including final public
hearings, have all been completed.
- 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 $80 million in additional debentures during 2018.
Proceeds will be used to complete pre- and post-permitting work,
including detailed engineering, environmental cleanup and
purchasing wetland credits.
- 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 production, capital,
operating and valuation estimates as well as an assessment of
potential future opportunities.
- Loss for the eleven months ended
December 31, 2017, was $10.1 million compared with $9.2 million for
the prior year period. Excluding non-cash compensation, general and
administrative expenses for the eleven months ended December 31,
2017, were $4.8 million compared with $4.8 million for the prior
year period.
- PolyMet invested $21.0 million cash
into its NorthMet Project during the eleven months ended December
31, 2017, compared with $23.4 million in the prior year
period.
- At December 31, 2017, PolyMet had cash
of $6.9 million compared with $18.7 million at January 31,
2017.
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:
- Transfer of title to the surface rights
over and around the NorthMet mineral rights to PolyMet as part of
the authorized land exchange.
- Favorable decision by the state on 401
Water Quality Certification and U.S. Army Corps of Engineers Final
ROD and 404 wetlands permit under Clean Water Act.
- Favorable decisions on final state
permits (Permit to Mine, air, water and dam safety permits).
- Completion of project implementation
plan.
- Completion of construction finance
plan, subject to typical conditions precedent such as receipt of
key permits.
Key Statistics
(in ‘000 US dollars, except per share
amounts)
December 31, 2017
January 31, 2017
Balance Sheet Cash &
equivalents
$
6,931
$ 18,674 Working capital (see note)
3,278
16,267 Total assets
409,042
389,049 Total liabilities
210,367
181,720 Shareholders’ equity
$
198,675
$ 207,329 Note: Working capital for December 31, 2017 is pro
forma reflecting the extenstion of the due date of $49.067 million
convertible debentures and $92.268 million non-convertible
debentures. These obligations are due March 31, 2019.
11 months endedDecember 31,
2017
12 months endedJanuary 31,
2017
Income Statement General
& administrative expense $ 6,125 $ 6,594 Other Expenses:
Finance & Other 2,180 2,635 Disposals
1,793 - Loss before tax: 10,098 9,229
Other Comprehensive (Income) 202 (213) Loss per share
0.03 0.03 Investing Activities
NorthMet Property $ 21,030 $ 23,445
Weighted average shares outstanding
318,891,961
288,998,010
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 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180328005606/en/
PolyMet Mining Corp.MediaBruce Richardson, +1
651-389-4111Corporate
Communicationsbrichardson@polymetmining.comorInvestor
RelationsTony Gikas, +1 651-389-4110Investor
Relationsinvestorrelations@polymetmining.com
Polymet Mining (TSX:POM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Polymet Mining (TSX:POM)
Historical Stock Chart
From Jul 2023 to Jul 2024