Market Overview

PolyMet Reports Results for Period Ended March 31, 2018


PolyMet Mining Corp ("PolyMet" or the "company") TSX: POM; NYSE MKT: PLM
– today reported that it has filed its financial results for the three
months ended March 31, 2018. PolyMet controls 100 percent of the
development-stage NorthMet copper-nickel-precious metals ore-body and
the nearby Erie Plant, located near Hoyt Lakes in the established mining
district of the Mesabi Iron Range in northeastern Minnesota.

The financial statements have been filed at
and on SEDAR and EDGAR and have been prepared in accordance with
International Financial Reporting Standards. All amounts are in U.S.
funds. Copies can be obtained free of charge by contacting the Corporate
Secretary at First Canadian Place, 100 King Street West, Suite 5700,
Toronto, Ontario M5X 1C7 or by e-mail at

2018 Highlights

  • In January 2018, the Minnesota Department of Natural Resources
    released the draft Permit to Mine for public review and comment which
    has now closed;
  • In January 2018, the Minnesota Pollution Control Agency released the
    draft water quality permit, draft section 401 water quality
    certification, and draft air emissions permit for public review and
    comment which have all closed;
  • In March 2018, all remaining public comment periods for the various
    draft permits concluded without extension;
  • In March 2018, the company and Glencore agreed to extend the term of
    outstanding debentures until March 31, 2019, reduce the interest rate
    on the outstanding debentures, and make available up to $80 million in
    additional debentures during 2018 of which $20 million was drawn on
    May 7, 2018. Proceeds are being used to complete pre- and
    post-permitting work, including detailed engineering and environmental
    cleanup, and to purchase wetland credits; and
  • In March 2018, the company issued an Updated Technical Report under NI
    43-101 incorporating process improvements, project improvements, and
    environmental controls described in the Final Environmental Impact
    Statement and draft permits. The update also included detailed capital
    costs, operating costs, and economic valuation for the mine plan being
    permitted as well as potential future production opportunities.

Goals and objectives for the next twelve months
permitting process is managed by the regulatory agencies and, therefore,
timelines are not under PolyMet control. Given these circumstances,
PolyMet's objectives include:

  • Transfer of title to the surface rights over and around the NorthMet
    mineral rights to PolyMet as part of the authorized administrative
    land exchange;
  • Favorable decision by the U.S. Army Corps of Engineers on the Final
    Record of Decision and 404 wetlands permit under the Clean Water Act;
  • Favorable decisions on final state permits (Permit to Mine, air,
    water, and dam safety permits);
  • Completion of project implementation plan; and
  • Execution of a construction finance plan, subject to typical
    conditions precedent such as receipt of key permits.

Key Balance Sheet Statistics


(in ‘000 US dollars)

Balance Sheet     March 31, 2018     December 31, 2017
Cash & equivalents $ 4,415 $ 6,931
Working capital (see note) (153,862) (138,057)
Total assets 412,974 409,042
Total liabilities 220,298 210,367
Shareholders' equity   $ 192,676   $ 198,675

Note: Working capital deficit is due to the Glencore debentures being
classified as current on the basis they mature on or before March 31,

As at March 31, 2018, PolyMet had cash of $4.415 million compared with
$6.931 million as at December 31, 2017. Subsequent to quarter end, an
additional $20 million was received from Glencore as described above.

As at March 31, 2018, PolyMet had spent $125.050 million on
environmental review and permitting since the NorthMet Project moved
from exploration to development stage.

Key Income and Cash Flow Statement


(in ‘000 US dollars, except per share amounts)

    Three months ended*
Income and Cash Flow Statement   March 31, 2018   April 30, 2017
General & administrative expense excluding non-cash share-based
$ 1,591 $ 1,128

Non-cash share-based compensation



Other Expenses:
Finance & Other 911 633
Non-cash loss on intangible disposal - 1,324
Non-cash loss on debenture modification     4,109     -
Loss for the period: 7,790 3,225
Other Comprehensive (Income)     -     (12)

Loss per share





Investing Activities:
NorthMet Property   $ 4,998   $ 4,937
View Comments and Join the Discussion!