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390 – 3600 Lysander Lane, Richmond, British
Columbia, Canada, V7B 1C3 |
| Tel: +1 (604) 248-0939 / Fax: +1 (604)
248-0940 |
| www.polymetmining.com |
| |
6500 County Road 666, Hoyt Lakes, MN
55750-0475
Tel: 218-225-4417 / Fax: 218-225-4429 |
| |
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| ADVANCING TO
PRODUCTION |
|
TSX: POM, NYSE Amex: PLM
POLYMET REPORTS
FIRST QUARTER FISCAL 2012
RESULTS
UPDATE ON STATE OF
MINNESOTA GOVERNMENT SHUTDOWN
Hoyt Lakes, Minnesota, July 6, 2011 - PolyMet Mining Corp.
(TSX: POM; NYSE-A: PLM) (“PolyMet” or the “Company”) today reported its
financial results for the three months ended April 30, 2011, which have been
filed at www.polymetmining.com and on SEDAR and EDGAR.
The Canadian
Accounting Standards Board requires all public companies to adopt International
Financial Reporting Standards ("IFRS") for interim and annual financial
statements relating to fiscal years beginning on or after January 1, 2011. These
are PolyMet's first condensed interim consolidated financial statements prepared
in accordance with 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
- Reconciliation from Canadian GAAP to IFRS: The most significant
changes relate to the Asset Retirement Obligation. Under IFRS, the future
obligation is discounted using a liability specific risk-free interest rate as
opposed to a higher, company credit adjusted risk-free interest rate. The
affect of this is to increase the book value of the Erie Plant with a slightly
larger increase in the long-term environmental liability at the time of the
acquisition – the difference being a larger accretion expense. The fair value
of the convertible debt and slightly different accounting for subsequent
extension of the term of the debt also cause minor some changes. The net
affect is to reduce total equity at January 31, 2011 by $0.323 million to
$102.295 million and to increase the total comprehensive loss in the year
ended January 31, 2011 by $0.401 million to $7.761 million.
- At April 30, 2011 PolyMet had cash and cash equivalents of $5.909 million
compared with $10.361 million at January 31, 2011. In November 2010, Glencore
AG ("Glencore") agreed to purchase 15 million shares of PolyMet common stock
at $2.00 per share for gross net proceeds of $30 million. The first tranche of
this private placement, comprising 5 million shares, closed on January 17,
2011. The second tranche of 5 million shares is scheduled to close on or
before October 17, 2011 and the final tranche of 5 million shares is scheduled
to close on or before October 15, 2012.
- During the three months ended April 30, 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 April 30, 2011 was $1.319 million compared
with $0.918 million in the prior year period. General and administrative
expenses were $1.183 million compared with $0.851 million for the prior year
period. Excluding non-cash stock-based compensation, general and
administrative expense was $0.647 million compared with $0.841 million for the
prior period, reflecting the Company's continued cost-cutting efforts during
the past year.
- PolyMet invested $2.914 million into its NorthMet project during the three
months ended April 30, 2011, compared with $4.775 million in the prior year
period. As of April 30, 2011 PolyMet had spent $33.648 million on
environmental review and permitting, of which $27.223 million has been spent
since the NorthMet project moved from exploration to development stage.
Douglas Newby, PolyMet's Chief Financial Officer stated, "the
transition to IFRS has gone smoothly and I am pleased that we have completed
these interim statements ahead of the regulatory schedule. I believe that we
have taken the necessary actions to ensure that we comply with reporting
timelines in the future.
"We expect to finalize timing of the second tranche of the
November 2010 private placement with Glencore imminently," he continued.
| Key Statistics - unaudited |
|
|
|
|
|
|
| (in '000 US
dollars, except per share amounts) |
|
|
|
|
|
|
| Balance Sheet |
|
April
30, 2011 |
|
|
January 31, 2011 |
|
| Cash and equivalents
|
|
5,909 |
|
|
10,361 |
|
| Working capital |
|
693 |
|
|
4,199 |
|
| Total assets |
|
155,975 |
|
|
156,614 |
|
| Long term liabilities |
|
43,773 |
|
|
43,717 |
|
| Shareholders' equity |
|
102,172 |
|
|
102,295 |
|
| |
|
|
|
|
|
|
| |
|
Three months ended |
|
| |
|
April 30, |
|
| Income Statement |
|
2011 |
|
|
2010 |
|
| General and
administrative (expense) |
|
(1,183 |
) |
|
(851 |
) |
| Other income (loss) |
|
(136 |
) |
|
(67 |
)
|
|
Income (loss) |
|
(1,319 |
) |
|
(918 |
) |
|
Income (loss) per share |
|
(0.01 |
) |
|
(0.01 |
)
|
| Investing Activities |
|
|
|
|
|
|
|
NorthMet Property |
|
2,914 |
|
|
4,775 |
|
| Weighted average shares outstanding |
|
154,913,235 |
|
|
148,989,218 |
|
Minnesota State Government
Most State of Minnesota
government functions ceased operations on July 1, 2011 owing to a budget impasse
between the Governor and the Minnesota Legislature. This shutdown has placed a
temporary halt on the work of the Minnesota Department of Natural Resources
("MDNR"), which is the lead State agency responsible for PolyMet's Supplemental
Draft Environmental Impact Statement (SDEIS).
The federal co-lead agencies, the US Army Corps of Engineers
and the US Forest Service, are providing oversight for the EIS process. The
third party contractor responsible for drafting the SDEIS is continuing to work
during the shutdown, as will PolyMet's EIS contractors. PolyMet expects that the
SDEIS process will continue to advance, although a prolonged state shutdown
could affect the timing of completion of the SDEIS.
* * * * *
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. |
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|
|
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|
|
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Per: |
“Joe Scipioni” |
| |
|
Joe Scipioni, CEO |
For further information, please contact:
| Corporate |
Media |
| Douglas Newby |
LaTisha Gietzen |
| Chief Financial Officer |
VP Public, Gov't & Environmental Affairs
|
| Tel: +1 (212) 867-1834 |
Tel: +1 (218) 225-4417 |
| dnewby@polymetmining.com |
lgietzen@polymetmining.com |
| |
|
| Investors |
|
| Crystal Agresti |
Alex Macdougall |
| Tel: +1 (845) 742-8153 |
Tel: +1 (226) 663-3000 |
| cagresti@polymetmining.com |
amacdougall@polymetmining.com
|
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.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.