| Tue 30 Mar 2010, 16:00 | | PLN - Platmin Limited - News release |
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PLN
PLN
PLN - Platmin Limited - News release
Platmin Limited
Incorporated in the accordance with the laws of Canada
Registration number: 610178-0
Share code on TSX: PPN
Share code on AIM: PPN
Share code on JSE: PLN
ISIN: CA72765Y1097
Platmin Announces Year-End Financial Results
Production Build-up Underway
30 March 2010
NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE
SERVICES
March 30, 2010. TORONTO: Platmin Limited ("Platmin" or "the Company";
TSX/AIM: PPN; JSE: PLN) today announced its financial results for the ten
months ended 31 December 2009. These results, together with the "Management
Discussion and Analysis", have been filed with applicable securities
regulators in Canada and are available at www.sedar.com and on the Company`s
website at www.platmin.com.
Platmin CEO Tom Dale commented:
"The build up to full capacity at Pilanesberg Platinum Mine continues, with
increased exposure of reef expected to translate into higher production
shortly. Although metallurgical recoveries from the oxidized reef remain low,
higher recovery "spikes" are observed on a regular basis when batches of
fresh ore are processed. Recoveries are expected to improve sharply as
sulphide extraction builds up during the second half of FY2010. Subject to
the normal uncertainties associated with mine planning during the start-up of
a new mine, we expect to reach an annualised production rate of 160,000
ounces of 3PGE+Au during FY2010, and the targeted annualized production rate
of 250,000 ounces per annum early in 2011."
Overview of Financial Results for the Year Ended 31 December 2009
For the ten months ended December 31, 2009 the Company recorded a net loss of
US$11.1 million, or US$0.02 per share, compared with a net loss of US$9.8
million, or earnings of US$0.04 per share, for the year ended February 28,
2009. These losses arise from costs associated with building-up operations at
PPM that were not capitalised, and from other corporate overheads.
As at December 31, 2009, the project capital expenditure for the development
of PPM had accumulated to US$407.8 million (ZAR3.0 billion). This total
includes concentrator capital expenditure of US$264.6 million (ZAR1.9
billion), capitalised pre-production mining costs of US$172.6 million (ZAR1.3
billion) and an offset of revenue from metal sales during the pre-production
phase of $29.4 million (ZAR240.8 million). Capital expenditure required to
complete the construction phase is estimated at US$16.4 million (ZAR121.2
million), bringing the total projected capital expenditure to US$424.2
million (ZAR3.1 billion).
Other key events during the ten month period included:
- 27,685 (3PGE+Au) ounces were dispatched and sold earning revenue of
US$29.4 million (ZAR240.8 million);
- The 3PGE+Au basket price received was $1,096/oz (ZAR8,629/oz at an
average exchange rate of R7.91 = US$1.00);
- A total of 75,015,552 common shares were issued in May 2009 at GBP0.52
pence per share (C$0.92 cents per share) for a gross consideration of
GBP39.0 million (US$62.1 million) or GBP37.3 million (US$59.4 million)
net of brokerage and legal fees;
- A secondary listing on the JSE was completed on 22 July 2009;
- The bridge loan facility with The Standard Bank of South Africa Limited
of $51.9 million (ZAR404.4 million) was repaid on 3 September 2009;
- A ZAR400 million (US$54.4 million at an exchange rate of ZAR7.35:
US$1.00) twelve month renewable, revolving commodity financing agreement
was concluded with Investec Bank Limited for working capital purposes
on 9 October 2009;
- The financial year end was changed from the last day of February to 31
December of each year;
- The company converted from Canadian GAAP to IFRS as the basis of
accounting for the current financial year-end, and was one of the first
Canadian listed mining company to do so;
- Mr Tom Dale was appointed as CEO and Director on 1 December 2009;
- Mr Brian Gilbertson was appointed Non-executive Chairman on 1 December
2009;
- The management of the exploration, development and operations functions
were separated after Mr Dale took office, and additional senior mining
staff were appointed in both PPM and the mining contractor to bolster
planning and operational capacity.
Key Events subsequent to the year end
- On 22 March 2010, subsidiary of Platmin entered into a R191m (US$26
million) promissory note facility with Pallinghurst Resources Limited.
- On 29 March 2010, Platmin executed a subscription agreement with Temasek
Holdings for the issuance of a US$100m non-interest bearing secured
Convertible Debenture.
Key operational statistics
Ten months Twelve
Unit to months to
31 Dec 2009 28 Feb 2009
Mining
RC* exploration meters 90,284 7,597
drilling
Topsoil removal cubic 655,751 143,557
meters
Overburden stripped cubic 12,459,719 1,283,056
meters
Reef hauled ROM tons 2,375,155 34,534
*Reverse
Circulation
Concentrator
Ore Processed ROM tons 1,580,179 -
Ore Milled ROM tons 1,488,587 -
About Platmin
Platmin explores for and develops Platinum Group Metals (PGM) deposits in
South Africa. The Company`s principal current focus is the Pilanesberg
Platinum Mine (PPM), which is building up to full production. Other projects
being explored are Mphahlele, Grootboom and Loskop. Platmin`s goal is to
become a significant producer of PGMs.
For further information
Charmane Russell Nicola Taylor
Russell & Associates Russell & Associates
+27 11 880 3924 +27 11 880 3924
+27 82 372 5816 + 27 82 927 8957
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This market release contains "forward-looking information" which may include,
but is not limited to, statements with respect to the future financial and
operating performance of Platmin, its subsidiaries and its mineral
properties, the future price of platinum or other PGMs, the estimation of
mineral resources and reserves, the realization of mineral resource
estimates, exploration expenditures, costs and timing of the development of
new deposits, costs and timing of the development of new mines, timing of
economic and scoping-level studies, forecasts and projections of future
production, capital costs and operating costs, future timing of achieving a
steady state of production, future costs and timing of future exploration,
requirements for additional capital, government regulation of mining
operations and exploration operations, timing and receipt of approvals and
licences under mineral legislation, environmental risks, title disputes or
claims and limitations of insurance coverage. Often, but not always, forward-
looking statements can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes" or variations (including negative
variations) of such words and phrases, or state that certain actions, events
or results "may", "could", "would", "might" or "will" be taken, occur or be
achieved.
Forward-looking statements in this market release include among others: the
Company`s plans with respect to the future development and operation of the
Pilanesberg Platinum Mine and the future advancement of the Mphahlele,
Grootboom and Loskop projects; projected annualized rates of production from
the Pilanesberg Platinum Mine; timing of the receipt of governmental
approvals and/or acceptances; targets, estimates and assumptions in respect
of platinum and other PGMs production and prices; amount and type of future
capital expenditures and capital resources; mineral reserves and mineral
resources; anticipated grades; recovery rates; future financial or operating
performance; costs and timing of the development of new deposits; costs,
timing and location of future drilling; earning of future interests in
various permits; production decisions; costs and timing of construction;
operating expenditures; costs and timing of future exploration; and
environmental and reclamation expenses. Forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Platmin and/or its
subsidiaries to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking statements. Such
factors include, among others, general business, economic, competitive,
political and social uncertainties; the actual results of current exploration
activities; conclusions of economic evaluations and studies; currency
fluctuations; future prices of platinum and other metals; possible variations
of ore grade or recovery rates; failure of equipment to operate as
anticipated; accidents, political instability, insurrection or war; delays in
obtaining governmental approvals or financing; liquidity and financing risks
related to the global economic crisis, as well as those factors discussed in
the section entitled "Risk Factors" in the Company`s annual information form
filed at www.sedar.com. Such forward-looking statements are based on a number
of material factors and assumptions, including: that contracted parties
provide goods and/or services on the agreed timeframes; that no unusual
geological (including grade) or technical problems occur; that plant and
equipment work as anticipated, and that there is no material adverse change
in the price of platinum or other PGMs. Although Platmin has attempted to
identify important factors that could cause actual actions, events or results
to differ materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to differ
from those anticipated, estimated or intended. Forward-looking statements
contained herein are made as of the date of this announcement and Platmin
disclaims any obligation to update any forward-looking statements, whether as
a result of new information, future events or results or otherwise, except as
required by applicable laws. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements due to the inherent uncertainty therein.
30 March 2010
Investment Bank and Sponsor:
Investec Bank Limited
Date: 30/03/2010 16:00:02 Produced by the JSE SENS Department.
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