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WG: POLYMET CORPORATE AND PROJECT UPDATE; THIRD QUARTER FISCAL 2012 RESULTS
Von: Marketwire [mailto:]
Gesendet: Mittwoch, 14.
Dezember 2011 15:05
An:
Betreff: PolyMet Corporate and Project Update; Third Quarter Fiscal 2012
Results
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PolyMet Mining Corp.
TSX:
POM
NYSE Amex:
PLM
Other Recent News
December 14, 2011
PolyMet Corporate and Project Update; Third Quarter Fiscal 2012 Results
HOYT LAKES, MINNESOTA--(Marketwire - Dec.
14, 2011) - PolyMet Mining Corp.
(TSX:POM)(NYSE Amex:PLM) ("PolyMet" or the "Company") today provided an
update on corporate developments and progress at its NorthMet project.
The
Company also reported its financial results for the three months ended
October 31, 2011.
PolyMet controls 100% 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 ("IFRS").
All amounts are in U.S.
funds.
Corporate & Finance
The most significant development has been the previously announced
agreements with Glencore A.G.
("Glencore") under which Glencore has invested
an additional $20 million into PolyMet, extended the term of the existing
debentures by two years, and agreed to an early trigger on existing warrants
to purchase common shares of PolyMet in exchange for lowering the exercise
price from $2.00 per share to $1.50 per share.
Glencore now owns approximately 42.0 million shares representing 24.1% of
PolyMets 174.5 million common shares issued and outstanding.
The third
tranche of the 2010 agreement, whereby Glencore has agreed to purchase 5
million shares at $2.00 per share, exchange of the debentures into common
shares of PolyMet, and exercise of the warrants could increase Glencores
ownership to approximately 71.6 million shares, or 35.1% on a partially
diluted basis.
At that point, Glencore would have invested $121.5 million
into PolyMet, not including capitalized interest due to Glencore.
Joe Scipioni, PolyMets President and CEO, stated, "We are pleased that
Glencore, one of the worlds leading integrated producers and marketers of
commodities, continues to support our NorthMet project.
The additional
financing and extension of the debt means that we can continue to focus our
efforts on completion of the environmental review and permitting, leading to
construction and operation of the project."
Douglas Newby, PolyMets Chief Financial Officer added, "We believe that our
relationship with Glencore will enable PolyMet to develop and operate
NorthMet as an independent company, focused on generating returns for our
stakeholders while having the support of a strategic partner whose interests
are aligned with all our shareholders."
Repayment of Debt
PolyMet acquired the Erie Plant facilities from Cliffs Natural Resources
Inc.
("Cliffs") in two transactions in November 2005 (the processing plant,
tailings facilities and related infrastructure) and December 2006
(additional land, rail track and trackage rights, rail cars, and additional
infrastructure).
Total consideration was 9.2 million shares, $4.9 million
cash and $14 million, of which approximately $7.0 million had been repaid as
of October 31, 2011.
The remaining $7.0 million notes will be repaid from
the proceeds of the latest financing from Glencore, at which time PolyMet
will have no further financial obligation to Cliffs other than its
indemnification of that company for environmental liabilities at the Erie
Plant.
Cliffs sold its PolyMet shares to Glencore in July 2011.
Project Update
The Company is pleased to report significant progress toward completion of
the environmental review.
Detailed modeling of the potential environmental
impact of the NorthMet project is underway, which will provide technical
support for Supplemental Draft Environmental Impact Statement ("SDEIS").
The
US Army Corps of Engineers, the US Forest Service, and the Minnesota
Department of Natural Resources are the Lead Agencies responsible for
preparing the SDEIS.
Several other parties are participating in the process,
including three tribal governments, the US Environmental Protection Agency,
the US Fish and Wildlife Service, and the Minnesota Pollution Control Agency
(the Co-operating Agencies).
Drafting of the preliminary SDEIS is in progress.
Once completed, the
preliminary SDEIS will be circulated to Co-operating Agencies and PolyMet
for review.
Coming out of that process, the Lead Agencies will then finalize
and publish the SDEIS for review and comment by the public.
Because thorough
analysis of the modeling inputs took longer than anticipated, drafting of
the preliminary SDEIS is several weeks behind the January target date
announced in September 2011.
Brad Moore, PolyMets Executive Vice-President responsible for government
and environmental affairs, said, "Completion of modeling will be an
important milestone in the complex environmental review process.
We are
confident it will demonstrate that the project meets all state and federal
environmental standards, including sulfate standards for wild rice, during
construction, operation, closure and post-closure.
"The Lead Agencies are making important progress, including input from
Co-operating Agencies and taking careful consideration of the public
comments on the 2009 Draft EIS," he continued.
"They have adopted more
sophisticated project management tools, which have helped to focus attention
on critical path items."
Third Quarter Financial Highlights
-- Loss for the three months ended October 31, 2011 was $0.046 million
compared with $0.263 million in the prior year period.
This includes
recovery of future income taxes of $0.657 million related to the
expiration of share purchase warrants in the latest period, compared
with recovery of $0.171 million for the same reason in the prior period.
General and administrative expenses excluding non-cash stock-based
compensation were $0.491 million in the three months to October 31, 2011
compared with $0.484 million for the prior period.
-- Loss for the nine months ended October 31, 2011 was $2.552 million
compared with $3.730 million for the prior period.
General and
administrative expenses excluding non-cash stock-based compensation in
the nine months to October 31, 2011 were $2.068 million compared with
$1.939 million in the prior period, excluding non-cash stock based
compensation and a non-cash financing write-off.
-- At October 31, 2011 PolyMet had cash and cash equivalents of $7.153
million compared with $10.361 million at January 31, 2011.
At October
31, 2011, $28.855 million debentures, which were then due on September
30, 2012, were classified as a current liability.
As described above,
the term of the debentures has been extended to September 30, 2014 and
PolyMet has received gross proceeds of $20 million from the sale of 13.3
million shares to Glencore.
As such, the debentures are expected to be
reclassified as long-term in the year-end financial statements.
Had
these transactions been completed prior to October 31, 2011, the balance
sheet would have shown cash of approximately $27.2 million, net current
assets of $22.4 million and long-term liabilities of $53.8 million.
-- Under the November 2010 financing, Glencore has agreed to purchase 5
million shares at US$2.00 per share no later than October 15, 2012.
This
additional $10 million equity is not included in the pro forma above.
-- PolyMet invested $3.874 million into its NorthMet project during the
three months ended October 31, 2011, compared with $3.771 million in the
prior year period.
PolyMet also received a $0.250 million non-refundable
deposit on the sale of some equipment that the Company no longer plans
to use.
The buyer has until February 10, 2012 to decide whether to
complete the purchase or lose the deposit.
If the sale proceeds, PolyMet
will net approximately $2.5 million in addition to the deposit already
received.
-- As of October 31, 2011 PolyMet had spent $37.844 million on
environmental review and permitting, of which $31.393 million has been
spent since the NorthMet project moved from exploration to development
stage.
Key Statistics - unaudited
(in 000 US dollars, except per share amounts)
-------------------------------------------------------------
Balance Sheet
January 31,
October 31, 2011 2011
Pro Forma (1) Actual Actual
-------------------------------------------
Cash and
equivalents $ 27,153 $ 7,153 $ 10,361
Working capital 22,399 (26,356) 4,199
Total assets 195,197 175,197 156,614
Long term
liabilities 53,805 25,050 43,717
Shareholders
equity 132,521 112,521 102,295
---------------------------------------------------------------------------
Three months
ended Three months ended Nine months ended
October 31, October 31,
---------------------------------------------------------
Income Statement 2011 2010 2011 2010
---------------------------------------------------------
General and
administrative
(expense)
excluding non-
cash share-based
compensation $ 491 $ 484 $ 2,068 $ 3,769
Non-cash share-
based
compensation 29 (203) 597 (169)
Other income
(loss) (183) (153) (544) (301)
---------------------------------------------------------
Income (loss)
before tax $ (703) $ (434) $ (3,209) $ (3,901)
Recovery of
future income
tax 657 171 657 171
---------------------------------------------------------
Income (loss)
per share $ (46) $ (263) $ (2,552) $ (3,730)
---------------------------------------------------------------------------
Investing
Activities
NorthMet Property $ 3,874 $ 3,771 $ 14,634 $ 12,734
---------------------------------------------------------------------------
Weighted average
shares
outstanding 161,069,637 149,463,703 157,363,932 149,167,531
---------------------------------------------------------------------------
Note 1: The pro forma balance sheet reflects gross proceeds of the sale of
13.3 million shares at $1.50 per share and extension of debentures to
September 30, 2014
About PolyMet
PolyMet Mining Corp.
(www.polymetmining.com) is a publicly-traded mine
development company that controls 100% of the NorthMet
copper-nickel-precious metals ore body through a long-term lease and owns
100% of the Erie Plant, a large processing facility located approximately
six miles from the ore body in the established mining district of the Mesabi
Range in northeastern Minnesota.
PolyMet Mining Corp.
has completed its
Definitive Feasibility Study and is seeking environmental and operating
permits to enable it to commence production.
The NorthMet project is
expected to require approximately one-and-a-quarter million hours of
construction labor and create approximately 360 long-term jobs, a level of
activity that will have a significant multiplier effect in the local
economy.
POLYMET MINING CORP.
Joe Scipioni, CEO
This news release contains certain forward-looking statements concerning
anticipated developments in PolyMets 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 our
beliefs related to the expected proceeds and closing of the registered
direct offering, exploration results and budgets, reserve estimates, mineral
resource estimates, work programs, capital expenditures, actions by
government authorities, including changes in government regulation, the
market price of natural resources, costs, or other statements that are not a
statement of fact.
Forward-looking statements address future events and
conditions and therefore involve inherent 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.
PolyMets 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 managements beliefs,
expectations and opinions should change.
Specific reference is made to PolyMets most recent Annual Report on Form
20-F for the fiscal year ended January 31, 2011 and in our other filings
with Canadian securities authorities and the Securities and Exchange
Commission, including our Report on Form 6-K providing information with
respect to our operations for the year ended January 31, 2011 for a
discussion of some of the risk factors and other considerations underlying
forward-looking statements.
PolyMets Quarterly Report for the three months
ended April 30, 2011 included a detailed description of the transition to
IFRS.
The TSX has not reviewed and does not accept responsibility for the adequacy
or accuracy of this release.
CONTACT INFORMATION:
PolyMet Mining Corp.
- Corporate
Douglas Newby
Chief Financial Officer
+1 (212) 867-1834
or
PolyMet Mining Corp.
- Media
LaTisha Gietzen
VP Public, Govt & Environmental Affairs
+1 (218) 225-4417
or
PolyMet Mining Corp.
- Investors
Crystal Agresti
+1 (845) 742-8153
or
PolyMet Mining Corp.
- Investors
Alex Macdougall
+1 (226) 663-3000
www.polymetmining.com
INDUSTRY: Manufacturing and Production - Mining and Metals
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