PolyMet Reports Second Quarter Fiscal 2012 Results
HOYT LAKES, MINNESOTA -- (Marketwire) -- 09/07/11 -- PolyMet Mining Corp. (TSX: POM)(NYSE Amex: PLM) ('PolyMet' or the 'Company') today reported its financial results for the three months ended July 31, 2011, which have been filed at www.polymetmining.com and on SEDAR and EDGAR. The financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS'). All amounts are in U.S. funds.
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.
Financial Highlights
-- At July 31, 2011 PolyMet had cash and cash equivalents of $11.492
million compared with $10.361 million at January 31, 2011. On July 15,
2011 Glencore AG ('Glencore') purchased 5 million shares of PolyMet
common stock at $2.00 per share for gross proceeds of $10 million in the
second tranche of the private placement agreed in November 2010. The
third and final tranche of 5 million shares is scheduled to close on or
before October 15, 2012.
-- During the three months ended July 31, 2011, PolyMet made scheduled
repayments of $0.5 million notes payable to Cliffs Natural Resources,
Inc. related to the acquisition of the Erie Plant.
-- Loss for the three months ended July 31, 2011 was $1.187 million
compared with $2.549 million in the prior year period. General and
administrative expenses were $0.962 million compared with $2.468 million
for the prior year period. Excluding non-cash stock-based compensation
in both periods and non-cash financing costs written off in the prior
year period, general and administrative expense was $0.930 million
compared with $0.614 million for the prior period. The majority of the
increase was professional fees relating to adoption of IFRS and legal
fees associated with corporate activity.
-- Loss for the six months ended July 31, 2011 was $2.506 million compared
with $3.467 million in the prior year period. General and administrative
expenses were $2.145 million compared with $3.319 million for the prior
year period. Excluding non-cash stock-based compensation in both periods
and non-cash financing costs written off in the prior year period,
general and administrative expense was $1.577 million compared with
$1.455 million for the prior period. The increase in professional fees
relating to year-end audit, adoption of IFRS and changes to the
Company's internal controls relating to financial reporting together
with legal fees associated with corporate activity totaled $0.323
million, which was partially offset by reduced corporate office expenses
and discontinuation of exploration activities.
-- PolyMet invested $7.843 million into its NorthMet project during the
three months ended July 31, 2011, compared with $4.166 million in the
prior year period. The more recent period included purchase of land that
PolyMet expects to exchange for surface rights currently held by the US
Forest Service at the NorthMet mine site. The purchase was funded with
proceeds from a $4 million loan from the Iron Range Resources and
Rehabilitation Board. As of July 31, 2011 PolyMet had spent $35.726
million on environmental review and permitting, of which $29.275 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)
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Balance Sheet July 31, 2011 January 31, 2011
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Cash and equivalents 11,492 10,361
Working capital 6,221 4,199
Total assets 171,210 156,614
Long term liabilities 48,561 43,717
Shareholders' equity 112,767 102,295
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Three months ended Six months ended
July 31, July 31,
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Income Statement 2011 2010 2011 2010
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General and
administrative (expense) (962) (2,468) (2,145) (3,319)
Other income (loss) (225) (81) (361) (148)
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Income (loss) (1,187) (2,549) (2,506) (3,467)
Income (loss) per share (0.01) (0.02) (0.02) (0.02)
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Investing Activities
NorthMet Property 7,843 4,166 10,761 8,941
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Weighted average shares
outstanding 156,040,791 149,046,890 155,480,584 149,018,305
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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 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 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. 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 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. PolyMet's 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.
Contacts:
PolyMet Mining Corp. - Corporate
Douglas Newby
Chief Financial Officer
1 (212) 867-1834
dnewby@polymetmining.com
PolyMet Mining Corp. - Investors
Crystal Agresti
1 (845) 742-8153
cagresti@polymetmining.com
PolyMet Mining Corp.
Alex Macdougall
1 (226) 663-3000
amacdougall@polymetmining.com
PolyMet Mining Corp. - Media
LaTisha Gietzen
VP Public, Gov't & Environmental Affairs
1 (218) 225-4417
1 (218) 225-4429 (FAX)
lgietzen@polymetmining.com
www.polymetmining.com