Moving to complete build-up to full production at PPM, and to pursue growth objectives
/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES/
TORONTO, May 14 /CNW/ - 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."
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
- 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.
SOURCE PLATMIN LIMITED
For further information: For further information: Charmane Russell, Russell & Associates, +27 11 880 3924, +27 82 372 5816; Nicola Taylor, Russell & Associates, +27 11 880 3924, +27 82 927 8957