UpdatePolyMet Announces Fiscal 2011 Third Quarter Results
HOYT LAKES, MINNESOTA--(Marketwire - Jan. 17, 2011) -
PolyMet Mining Corp. (TSX:POM)(NYSE Amex:PLM) ("PolyMet" or the "Company") reported today its financial results for the three months ended October 31, 2010, which have been filed at
www.polymetmining.com and on SEDAR. All amounts are in U.S. funds.
PolyMet controls 100% 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.
Highlights
At October 31, 2010 PolyMet had cash and cash equivalents of $4.994 million compared with $2.926 million at October 31, 2009. After October 31, 2010, the Company agreed to sell 15 million shares of common stock to Glencore AG ("Glencore") at $2.00 per share for anticipated net proceeds of $28.8 million.
During the nine months ended October 31, 2010, PolyMet repaid $1.500 million notes payable to Cliffs Natural Resources, Inc. related to the acquisition of the Erie Plant.
Third quarter loss for the three months ended October 31, 2010 was $210,000 compared with $841,000 in the prior year period. General and administrative expenses were $378,000 for the quarter compared with $883,000 for the prior year period. Excluding a one-time non-cash reversal of prior accrual of stock-based compensation in the latest quarter, general and administrative expense was $581,000 compared with $786,000 for the prior period (excluding a non-cash charge of $97,000 for stock-based compensation during that period).
For the nine months ended October 31, 2010 we reported a loss of $3.563 million compared with $2.858 million in the prior year. The increase in the loss for the period was primarily attributable to writing-off deferred financing costs related to the advisory services provided by BNP Paribas Loan Services ("BNPP"), of which $1.197 million was the fair value of warrants issued. Excluding this write-off and non-cash stock-based compensation, general and administrative expense totaled $2.222 million for the nine months ended October 31, 2010, compared with $2.099 million in the prior year period.
Key Statistics
PolyMet Mining Corp.
Three months ended
Nine months ended
(in '000 US dollars, except per share amounts)
October 31,
October 31,
2010
2009
2010
2009
Financial Position
Cash and equivalents
4,994
2,926
Net current assets
1,056
(2,515)
Long term liabilities
41,140
42,884
Shareholders' equity
93,777
72,551
Financial Results
General and administrative (expense)
(378)
(883)
(3,883)
(2,981)
Other income (loss)
168
42
320
123
Income
(210)
(841)
(3,563)
(2,858)
Income per share
(0.00)
(0.01)
(0.02)
(0.02)
Investing Activities
NorthMet Property
3,771
4,450
12,734
12,553
Weighted average shares outstanding
149,463,703
139,078,875
149,167,531
138,467,337
About PolyMet
PolyMet Mining Corp. (www.polymetmining.com) is a publicly-traded mine development company that controls 100% of the NorthMet copper-nickel-precious metals ore body through a long-term lease and owns 100% of the Erie Plant, a large processing facility located approximately six miles from the ore body in the established mining district of the Mesabi Range in northeastern Minnesota. PolyMet Mining Corp. has completed its Definitive Feasibility Study and is seeking environmental and operating permits to enable it to commence production. The NorthMet project is expected to require approximately one and a half million hours of construction labor and create 400 long-term jobs, a level of activity that will have a significant multiplier effect in the local economy.
POLYMET MINING CORP.