After Tuesday’s close, Platinum Group Metals (TSX: T.PTM, Stock Forum) reported its second-quarter financial results. The company's loss for the period amounted to $383,494, or breakeven on a per-share basis, compared with a loss of $3.766 million, or six cents a share, for the comparative period in fiscal 2009. The results include a gain on sale of marketable securities in the period of $2.72 million.
Platinum Group Metals is actively assessing several strategic alternatives in order to maximize shareholder value from its projects in South Africa. The alternatives include building the Project 1 platinum mine using conventional debt and equity, hedging some of the project in a partnership or transaction involving a minority of the metal flow, or the sale of the company. Platinum Group Metals hopes to finalize and announce its path forward shortly.
During fiscal 2009 the company completed an agreement to increase its effective interest in its core assets, Project 1 and 3 of the Western Bushveld Joint Venture in South Africa. Subject to final title registrations now underway in South Africa, Platinum Group will hold a 74% interest in the large scale and high-grade Platinum Group Metals reserves and resources hosted by Projects 1 and 3. An updated feasibility study was completed in October 2009 on the more advanced Project 1, scheduling for a 275,000 ounce per year, 22-year life mine operation.
“Although our final transfers have taken some extra time, the delay has played into to our hand as the market in platinum group metals (pgms) strengthen as we said it would. The extra time has allowed us to work on our strategic options and we have done a great deal of work. We are ready for a decision on our path for best value right when platinum is in the spotlight,” Platinum Group Metals President R. Michael Jones told Stockhouse.
For more insight into the Platinum Group Metals story please read the column from Ticker Trax’s Thom Calandra.