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PolyMet reports results for period ended September 30, 2019

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PolyMet Mining Corp ("PolyMet" or the "company") TSX: POM; NYSE American: PLM – today reported it has filed its financial results for the three and nine months ended September 30, 2019. PolyMet is permitted to construct and operate the NorthMet copper-nickel-precious metals mine and processing plant located near Hoyt Lakes, 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.

Highlights and recent events for 2018 and 2019 to date

Significant progress was made during 2018 and 2019 to date. Notably, key permits and approvals required to construct and operate NorthMet were received and title to the surface rights over and around the NorthMet mineral rights was secured. PolyMet also released an updated technical report which included an assessment of higher potential production scenarios, and secured additional financing to complete permitting, including required wetland credits and financial assurance, advanced final engineering and other activities to facilitate the transition to construction.

More specifically:

  • In June 2019, a $265.0 million rights offering, fully backstopped by Glencore AG ("Glencore") was completed with the proceeds used to fully repay outstanding debt and strengthen the company's financial position. As a result of the rights offering, Glencore ownership of the company's issued shares increased to 71.6%;
  • In preparation for construction, the company completed geotechnical investigations, installed monitoring wells, advanced project execution planning and implemented its environmental management system;
  • In March 2019, the federal Record of Decision and wetlands permit was received from the U.S. Army Corps of Engineers, representing the last key permit or approval needed to construct and operate the NorthMet Project;
  • In December 2018, all Minnesota Pollution Control Agency permits for NorthMet which the company had applied, including air and water permits, were received; and
  • In November 2018, all Minnesota Department of Natural Resources permits for NorthMet which the company had applied, including the Permit to Mine, dam safety and water appropriations permits, were received.

Goals and objectives for the next twelve months

PolyMet's objectives include:

  • Continue successful resolution of ongoing legal challenges to permits;
  • Maintain political, social and regulatory support for the project;
  • Finalize project optimization plan;
  • Finalize project implementation plan; and
  • Complete construction finance, subject to typical conditions precedent.

Key balance sheet statistics

(in ‘000 US dollars)

Balance Sheet

   

September 30, 2019

 

 

December 31, 2018

Cash

 

$

14,995

 

$

13,857

Working capital

 

 

8,500

 

 

(225,359)

Total assets

 

 

509,294

 

 

485,629

Total liabilities

 

 

75,724

 

 

300,587

Shareholders' equity

 

$

433,570

 

$

185,042

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

 

 

September

30, 2019

 

 

September

30, 2018

 

 

September

30, 2019

 

 

September

30, 2018

General & administrative expense

 

$

1,287

 

$

1,262

 

$

5,052

 

$

5,541

Other Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Finance & other

(380)

(30)

(277)

604

Non-cash rehabilitation accretion

671

456

1,527

1,327

Non-cash loss on land exchange

-

-

-

553

Non-cash loss on debenture modification

-

-

2,004

4,109

Loss for the period:

 

 

1,578

 

 

1,688

 

 

8,306

 

 

12,134

Loss per share

 

 

0.00

 

 

0.01

 

 

0.01

 

 

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