| Mon 15 Aug 2011, 15:16 | | PLN - Platmin Limited - Metal sales at record high in second quarter |
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PLN
PLN
PLN - Platmin Limited - Metal sales at record high in second quarter
Platmin Limited
Incorporated in the accordance with the laws of British Columbia, Canada
Registration number: C0848954
Share code on TSX: PPN
Share code on AIM: PPN
Share code on JSE: PLN
ISIN: CA72765Y1097
("Platmin" or "the company")
METAL SALES AT RECORD HIGH IN SECOND QUARTER
Illegal disruptions set back production build-up
15 August, 2011, TORONTO: Platmin Limited ("Platmin" or "the Company") today
announced production results from the Pilanesberg Platinum Mine ("PPM") and
financial results for the quarter and half-year ended June 30, 2011. This
release should be read in conjunction with the Company`s June 30, 2011
Quarterly Financial Statements and Management Discussion & Analysis for the
quarter and half-year ended June 30, 2011, both of which are available at
www.platmin.com and filed on www.sedar.com.
Operations
Sales of 4E PGM ounces ("oz") were as follows:
* For the June 2011 month - 9,258oz or about 110 000oz annualized;
* for the quarter ended June 30, 2011 - 21,888oz, an increase of over
100% compared with 10,870oz in the prior corresponding period; and
* for the half-year ended June 30, 2011 - 39,791oz, an increase of 58%
compared with 25,259oz in the prior corresponding period.
Volumes treated in the concentrator continue to improve. Between January and
June 2011, the monthly tonnes milled increased from 207kt to 277kt and
improvements to recoveries are evident when consistent ore volumes with
similar physical and chemical properties are processed.
On June 23, illegal disruptions by a small group of employees of the
Company`s mining contractor (MCC - a wholly-owned subsidiary of Eqstra
Holdings Limited) resulted in serious damage to certain items of MCC`s
equipment and interrupted mining operations. However, PPM`s concentrator
continued to operate, processing stockpiles of oxidized material.
Mining operations have resumed in full for the three operating shifts per
day. However, as a direct consequence of the equipment damage and the
reorganisation described below, the projected production ramp-up to 12,000oz
per month by the end of 2011, could be delayed by three to six months.
The final documentation for the revised environmental management plan has
been submitted to the Department of Mineral Resources and a reply is
expected during Q3 FY2011.
Financial performance
Sales revenue was:
* for the quarter-ended June 30, 2011 - US$34.5 million, an increase of
approximately 130% compared with US$15.0 million recorded in the prior
corresponding period; and
* for the half-year ended June 30, 2011 - US$60.5 million, an increase of
approximately 80% compared with the prior corresponding period.
The increases in sales revenues were due to higher metal sales and an
increase in PGM basket prices in US dollar terms over the period. However,
the benefit of the improved US dollar PGM basket price was somewhat offset
by the strength of the Rand, resulting in marginal decreases of the Rand PGM
basket prices received compared with the prior corresponding periods.
The Company recorded net losses for the quarter and half-year ended June 30,
2011 of US$23.2 million and US$58.0 million respectively, equivalent to
losses per share of US$0.02 and US$0.05.
The Company is evaluating the merit of its current listings on the TSX, AIM
and JSE and the potential merits of alternatives.
Outlook
Tom Dale, CEO of Platmin noted that although work had resumed in the
Tuschenkomst pit, a focus on sound industrial relations and long-term
industrial peace was required. "MCC, the mining contractor, and the NUM have
committed to this and external agencies, skilled in relationship building,
are being brought in," he said.
"MCC has indicated that it is currently unable to haul the volumes of rock
budgeted at the PPM site due to extensive damage to the fleet. As a result,
PPM intends bringing in an additional mining contractor.
"In order that PPM, MCC and the new contractor might focus on core
competencies, separation of drilling, blasting and load and haul activities
is being discussed. Load and haul would be further separated into waste and
reefing operations. PPM plans to take direct control of drilling and
blasting in order to optimize mineral resource management and improve pit
conditions.
Mr Dale continued, "The planned changes could take up to six months to
implement and will create clear areas of accountability among the various
parties. Prior to the industrial action, we were on our way to achieving
breakeven and full production. We are confident that, once the revised
operating structures are functioning, we will get back on track."
For further information:
Charmane Russell
Russell and Associates
+27 11 880 3924
+27 82 372 5816
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 Limited (the "Company" or
"Platmin"), its subsidiaries and affiliated companies (which together with
Platmin is referred to as "the Platmin Group" or "the Group"), and its
mineral projects, the future price of 4E PGMs (being platinum, palladium,
rhodium and gold), 4E PGM production levels, mining rates, the future price
of other base metals, future exchange rates, the estimation of mineral
resources and reserves, the realization of mineral resource estimates or
their conversion into reserves, costs and future costs of production,
capital and exploration expenditures, including ongoing capital expenditure
at PPM, costs and timing of the development of new deposits, costs and
timing of the development of new mines, costs and timing of future
exploration, requirements for additional capital, government regulation of
mining operations and exploration operations, timing and receipt of
approvals, licenses, and conversions under South African mineral
legislation, environmental risks, title disputes or claims, limitations of
insurance coverage and the timing and outcome of regulatory matters. 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", "targeted" 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, amongst others, forecast
production reaching a monthly rate of 12,000 4E PGM ounces by the end of
FY2011 and 20,000 4E PGM ounces of by the end of FY2012 provided the planned
volumes of waste stripping can be achieved; lodging of an amended
environmental management plan in August 2011; recovery rates and grade;
targets, estimates and assumptions in respect of 4E PGM prices and
production; allocation of funds for current commitments; and the timing and
completion of definitive feasibility engineering studies at the Mphahlele,
Grootboom and Loskop Projects.
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 time frames, that budgets and production forecasts
are accurate, that equipment necessary for construction and development is
available as scheduled and does not incur unforeseen break downs, that no
labour shortages or delays are incurred, that plant and equipment function
as specified, that geological or financial parameters do not necessitate
future mine plan changes, that no unusual geological or technical problems
occur, and that grades and recovery rates are as anticipated in mine
planning.
Forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of the Company 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 and mining activities; development and
operational risks; title risks; regulatory risks; conclusions of economic
evaluations and studies; fluctuations in the value of the United States
dollar relative to the Canadian dollar or South African rand; changes in
project parameters as plans continue to be refined; future prices of 4E PGM
metals; possible variations of ore grade or recovery rates (including the
existence of potholes, faults and other geological conditions that may
affect the existence or recovery of resources and reserves); failure of
plant, equipment or processes to operate as anticipated; accidents, labour
disputes, industrial unrest and strikes and other risks of the mining
industry; political instability, insurrection or war; the effect of HIV/AIDS
on labour force availability and turnover; delays in obtaining governmental
approvals or financing or in the completion of development or construction
activities, as well as those factors communicated in the section entitled
"Risk Factors" of Platmin`s current annual information form ("AIF") and its
final short form prospectus dated May 5, 2010, which can both be viewed at
www.sedar.com. 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
market release and Platmin disclaims any obligation to update any forward-
looking statements, whether as a result of new information, future events or
results or otherwise. 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
Sponsor:
Investec Bank Limited
Date: 15/08/2011 15:16:00 Produced by the JSE SENS Department.
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