/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES/
TORONTO, Aug. 12 /CNW/ - Platmin Limited ("Platmin" or "the Company"; TSX/AIM: PPN; JSE: PLN) today announced results for the three months ended 30 June 2010 (Q2). These results relate principally to Pilanesberg Platinum Mine (PPM), the Company's first platinum group metal mining operation, where the production build-up continues.
During this build-up phase and as a development stage company, Platmin capitalizes operating costs, net of revenue from metal sales. This will continue until such time as PPM is brought into commercial production. The Company recorded a loss for the quarter ended June 30, 2010 of US$0.571 million. This excludes the once off non-cash fair value adjustment of US$23.455 million on the US$135 million non-interest bearing convertible debenture issued during the quarter. In total the loss for the quarter was US$24.026 million or a loss per share of US$0.04, compared with a net loss of US$13.585 million or a net loss per share of US$0.03, for the quarter ended May 31, 2009. For the six-month period ended 30 June 2010, the Company recorded a loss of US$29.207 million, or a loss per share of US$0.05, compared with a net loss of US$26.075 million or a net loss per share of US$0.07, for the six months ended May 31, 2009.
During the quarter under review,
- waste stripped increased to 4,012,655 bulk cubic meters;
- ore delivered to the run of mine pads was 551,673 tonnes;
- ore milled was 608,182 tonnes;
A total of 10,548 ounces (3PGM+Au) were dispatched and sold during the quarter, yielding US$14.998 million (ZAR114.106 million) in revenue. This was offset against pre-production operating costs of US$36.641 million (ZAR278.775 million). For the six-month period ended June 30, 2010, a total of 25,072 ounces (3PGM+Au) were dispatched and sold, yielding US$33.501 million (ZAR252.612 million) in revenue.
As at June 30, 2010, total project expenditure for the construction and development of the PPM mining complex, including capitalized pre-production costs and plant capital expenditure, offset by revenue from metal sales during the pre-production phase, amounted to US$456.432 million (ZAR3.473 billion). Further outstanding mine development expenditure of US$14.988 million (ZAR114.037 million), will bring the total project expenditure to US$471.420 million (ZAR3.587 billion).
During the quarter under review, there were a number of short-term challenges which adversely impacted operational performance. These included:
- unseasonal high rainfall in April resulting in wet floor and unsafe
operating conditions for the trucks during April and part of May;
- damage to the precipitator at the Northam Platinum Limited
metallurgical plant affected concentrate deliveries for approximately
- downtime at the Merensky mill during June to re-build the pinion
Platmin CEO Tom Dale commented that, "We strengthened the team further during the second quarter, specifically in mineral resource management and planning. We continue to make sound decisions for long term production and these will begin to show results during the second half of the year. Sales and dispatches for the month of July were 6,375 (3PGM+Au) ounces compared to the 10,548 ounces for the June quarter. Looking ahead, we plan to produce up to 12,000 ounces per month (144,000 ounces on an annualized basis) by December 2010 and a total of up to 80,000 ounces for the 2010 financial year. This is a reduction from our recently published capital raising prospectus in which we forecast a total of 120,000 ounces dispatched and sold for the current year. The planning and budgeting process for 2011 is underway and we will publish updated guidance for the next financial year when this is available. We continue to plan towards the target of 200,000 ounces dispatched and sold during 2011."
During the quarter under review, the company raised US$250 million through the placement of 205,761,317 new common shares at a price of US$1.215 each. These funds were raised to complete construction and build-up to full production at PPM and for certain growth projects. A further amount of US$135 million was raised with select investors through the placement of non-interest bearing convertible debentures, convertible at the option of the holder by December 31, 2010 at a conversion price of US$1.215 per common share.
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 include 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: James Duncan/Charmane Russell, Russell & Associates, +27 11 880 3924