| Fri 14 May 2010, 16:00 | | PLN - Platmin Limited - Platmin announces first quarter results |
|
PLN
PLN
PLN - Platmin Limited - Platmin announces first quarter results
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
NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE
SERVICES
For immediate release
PLATMIN ANNOUNCES FIRST QUARTER RESULTS
Moving to complete build-up to full production at PPM, and to pursue growth
objectives
Friday, 14 May, 2010. TORONTO: Platmin Limited ("Platmin" or "the Company";
TSX/AIM: PPN; JSE: PLN) today announced results for the three months ended
31 March 2010. These results relate principally to Pilanesberg Platinum Mine
(PPM), the first of the Company`s Platinum Group Metals (PGM) producers.
The Company recorded a loss for the quarter ended March 31, 2010 of US$5.
181 million, or a loss per share of US$0.01, compared with a net loss of
US$12.490 million or a net loss per share of US$0.07, for the quarter ended
February 28, 2009. As a development stage company, Platmin offsets revenue
from mining activities against capitalized operating costs until such time as
PPM is brought into commercial production.
Platmin CEO Tom Dale commented that mining and processing activities
continued in the ramp-up phase to commercial production at PPM, with
the ground-work having been laid for increased production once mining
progresses from the oxidized zone. "At a corporate level this has been
an exciting period. We have just completed a significant fund-raising
initiative - from both existing and new shareholders. These funds will
be applied to complete the build-up to full production at PPM and to pursue
our vision of becoming a significant producer of PGMs through the
participation in the consolidation and cost effective development of the
shallow resource base on the Western limb of the Bushveld Complex in South
Africa."
Operating performance
A total of 3.911 million cubic metres of top-soil and waste material was
removed from the pit, and a total of 711,398 run-of-mine (ROM) tonnes of
reef mining took place. Reef ore continued to be extracted from the oxidized
layer, where metallurgical recoveries are traditionally lower.
A total of 14,177 ounces of PGMs were produced by PPM during the quarter.
As at March 31, 2010 the total stockpile of 883,535 ROM tonnes consisted of
70,609 ROM tonnes of Merensky and UG2 ore and 812,926 ROM tonnes of low grade
ore.
As at March 31, 2010, the total project capital expenditure, for the
development of PPM, including capitalised pre-production costs, plant capital
expenditure and offsetting revenue from metal sales during the pre-production
phase amounted to US$440.815 million (ZAR3.229 billion). Outstanding plant
capital expenditure to completion of the construction phase of US$16.102
million (ZAR117.948 million) will bring the total capital expenditure spent
to US$456.917 million (ZAR3.347 billion).
Key recent corporate developments include significant fund-raising
initiatives and the acquisition (subject to certain conditions) of a 10%
interest in the Sedibelo property from Barrick.
* On March 22, 2010, Platmin entered into a R191 million
(US$26.0 million) short-term lending facility with Pallinghurst
Resources Limited, which was
drawn down in full subsequent to the quarter-end.
* Post the quarter-end, on April 16, 2010 Platmin concluded an agreement
to acquire the 10% interest in the Sedibelo Platinum Project held by Barrick
Gold Corporation for a consideration of US$15 million. In addition, Barrick
has undertaken to transfer to Platmin, at cost, various long lead items
required for the development of Sedibelo. The final consideration, up to
US$45 million, is still to be determined
* On May 13, 2010, Platmin completed the issuance of 205,761,317 new common
shares at a price of US$1.215 per common share for a total consideration of
US$250 million, and the issuance US$135 million of convertible debentures.
The total funding from the prospectus offering and private placement is US$385
million. Proceeds from the convertible debenture financing have been deposited
to cash collateralized accounts, and in the event the convertible debentures
are not converted in full prior to the maturity date, the principal amount will
be returned to the holders.
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 completion of the
prospectus offering of common shares and private placement of convertible
debentures, the future financial and operating performance of Platmin, the
development of, and production from, the Pilanesberg Platinum Mine, and the
future advancement of the Mphahlele, Grootboom and Loskop projects. 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 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;
satisfaction of contractual closing terms and condition; and the requirement
for regulatory approvals. as well as those factors discussed in the section
entitled "Risk Factors" in the Company`s annual information form filed at
www.sedar.com and in the final prospectus for the common shares offering,
also available at www.sedar.com. Such forward-looking statements are based
on a number of material factors and assumptions, including that contracted
parties perform as agreed, that there is no material adverse change in the
price of platinum or other PGMs, and that all regulatory approvals are received
in the usual and ordinary course. 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.
Investment Bank and Sponsor:
Investec Bank Limited
14 May 2010
Date: 14/05/2010 16:00:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
