Company Website:
http://www.polymetmining.com/
ST. PAUL, Minn. -- (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 ended December 31, 2017 | | 12 months ended January 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/
Contacts:
PolyMet Mining Corp.
Media
Bruce Richardson, +1
651-389-4111
Corporate Communications
brichardson@polymetmining.com
or
Investor
Relations
Tony Gikas, +1 651-389-4110
Investor Relations
investorrelations@polymetmining.com
Source: PolyMet Mining Corp.
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