Market Overview

PolyMet Reports Results for Period Ended September 30, 2018 Following State's Issuance of Permit to Mine on November 1, 2018

Share:

PolyMet Mining Corp ("PolyMet" or the "company") TSX: POM; NYSE
American: PLM – today reported that it has filed its financial results
for the three and nine months ended September 30, 2018. PolyMet received
its Permit to Mine on November 1, 2018 and 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 www.polymetmining.com
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 info@polymetmining.com.

2018 Highlights

  • In November 2018, the company received all Minnesota Department of
    Natural Resources permits for NorthMet for which the company had
    applied, including the Permit to Mine, dam safety, water
    appropriations and public waters work permits along with Wetland
    Conservation Act approval;
  • In October 2018, the Minnesota Pollution Control Agency transmitted
    revised draft air and water permits for U.S. Environmental Protection
    Agency review, noting that they are not open for public comment and
    final permit decisions are expected by the end of the year;
  • In June 2018, the company and U.S. Forest Service completed the
    federal land exchange giving PolyMet title and control over both
    surface and mineral rights in and around the NorthMet ore body;
  • 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 valuations for the mine plan
    being permitted, as well as discussion of potential future
    opportunities; and
  • In March 2018, the company and Glencore agreed to extend the term of
    outstanding debentures until March 31, 2019 or certain events, reduce
    the interest rate on the outstanding debentures, and make available up
    to $80 million in additional funding. Proceeds are being used to
    complete permitting, purchase wetland credits, advance detailed
    engineering and perform certain early works to prepare the site for
    construction.

Goals and objectives for the next twelve months

The permitting process is managed by the regulatory agencies and,
therefore, timelines are not under PolyMet control. However, the MPCA
announced that final decisions will be made by the end of the year and
U.S. Army Corps of Engineers final decisions are expected to follow
thereafter. Given these circumstances, PolyMet's objectives include:

  • Favorable decisions on final MPCA permits (air and water);
  • Favorable decision by the USACE on the Final Record of Decision and
    404 wetlands permit under the Clean Water Act;
  • Completion of Project implementation plan; and
  • Execution of a construction finance plan.
 
Key Balance Sheet Statistics

(in ‘000 US dollars)

 
Balance Sheet September 30, 2018       December 31, 2017
       
Cash & equivalents $ 6,962 $ 6,931
Working capital (see note) (185,264) (138,057)
Total assets 436,073 409,042
Total liabilities 248,785 210,367
Shareholders' equity     $ 187,288     $ 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,
2019.

At September 30, 2018, PolyMet had cash of $6.962 million compared with
$6.931 million at December 31, 2017. Subsequent to quarter end, an
additional $25 million was received from Glencore under the March 2018
agreement described above.

As of September 30, 2018, PolyMet had spent $131.315 million on
environmental review and permitting since the NorthMet Project moved
from exploration to development stage.

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

 

Key Income and Cash Flow Statement
Statistics

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

       
Three months ended Nine months ended
Income and Cash Flow Statement Sept 30,     Oct 31, Sept 30,     Oct 31,
2018 2017 2018 2017
 

General & administrative expense excluding non-cash share-based
compensation

$ 1,080 $ 910 $ 3,904 $ 3,446
 

Non-cash share-based compensation

182

283

1,637

1,095

 
Other Expenses:
Finance & Other 426 589 1,931 1,830
Non-cash loss on disposals - 469 553 1,793
Non-cash loss on debenture modification - - 4,109 -
1 TNXP, PTON: 18 Stocks Moving in Thursday's Pre-Market Session
2 ADBE, LYG: 20 Stocks Moving in Friday's Pre-Market Session
3 TSLA: 'I Can't Fight It Anymore': Why Cramer Lik...
4 OGI, ACB: Why Production Costs Could Lead To 'Carnage&...
5 DELL, LUV: Facebook, Google Are No Longer The Best...
6 CORV, PBYI: The Daily Biotech Pulse: Europ...
7 IR, ADC: Benzinga's Top Upg...