Platmin Announces Year-End Financial Results

Production Build-up Underway

/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES/

TORONTO, March 30 /CNW/ - 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
        (pnds stlg)0.52 pence per share (C$0.92 cents per share) for a gross
        consideration of (pnds stlg)39.0 million (US$62.1 million) or
        (pnds stlg)37.3 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 months
                                                      to             to
                                    Unit          31 Dec 2009    28 Feb 2009
    -------------------------------------------------------------------------
    Mining
    -------------------------------------------------------------------------
    RC* exploration drilling     meters            90,284         7,597
    -------------------------------------------------------------------------
    Topsoil removal             cubic meters        655,751       143,557
    -------------------------------------------------------------------------
    Overburden stripped         cubic meters     12,459,719     1,283,056
    -------------------------------------------------------------------------
    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.

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.

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

Organization Profile

PLATMIN LIMITED

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890