Platinum Group Metals Ltd. (TSX:PTM)(NYSE MKT:PLG) ("Platinum
Group" or the "Company") reports the Company's financial results
for the year ended August 31, 2012. For details of the consolidated
financial statements (the "Financial Statements") and Management's
Discussion and Analysis for the year ended August 31, 2012 please
see the Company's filings on SEDAR (www.sedar.com) or on EDGAR
(www.sec.gov). Shareholders are encouraged to visit the Company's
website at www.platinumgroupmetals.net. Shareholders may request a
copy of the complete Financial Statements from the Company free of
charge.
The Company's cash position at August 31, 2012 was $48.17
million, including $30.51 million in restricted cash. The Company
holds cash in both Canadian dollars and South African Rand and
changes in the exchange rate may create variance in the cash
holdings reported in Canadian dollars. All amounts herein are
reported in Canadian dollars unless otherwise specified.
Platinum Group has made the transition to mine construction at
the Western Bushveld Joint Venture Project 1 platinum mine
("Project 1") located near Rustenburg, South Africa and has made a
discovery of a second platinum deposit in South Africa at the
Waterberg project located near Mokopane, South Africa.
Phase 1 construction at Project 1 is estimated for completion in
late March or early April, 2013. The planned US $260 million
project senior loan facility for Phase 2 construction has advanced
through detailed technical, financial and legal due diligence. The
loan is in the formal credit approval process at this time.
Drilling to expand the newly discovered inferred mineral
resource at the Waterberg project is continuing.
Recent Highlights
-- A US $100 million Phase 1 development program is now approximately 80%
complete at Project 1. A central box cut excavation has been completed.
The sinking of twin declines at the central location is progressing
well. Both declines are now advanced to 770 metres linear from their
collar. Substantial surface infrastructure has now been constructed on
site.
-- Safety, in all our operations, is our number one priority, and the
Company is pleased to report that onsite safety performance at Project 1
has been excellent to date with approximately 950,000 man hours worked
and two minor lost time incidents.
-- A south box cut excavation for a planned second twin decline system is
substantially complete. Sinking of this second decline set is planned to
commence under Phase 2.
-- A temporary power supply of 1.5MVA has been installed on site and has
been energized. Construction of a 10 MVA supply line and substation is
almost complete, with switch gear currently being installed. This
service is to be energized in early 2013.
Milestones Completed
-- On November 5, 2012, the Company announced new drill intercepts
approximately doubling the strike length of the Waterberg discovery to a
total of 5.5 kilometers up to the northern boundary of the current joint
venture project. The results extended the known "F" mineralized layers
for 2.7 kilometers beyond the initial resource area declared in
September, 2012. Results included 24.00 meters grading 4.32 grams per
tonne ("g/t") 2E (platinum ("Pt") and palladium ("Pd") collectively) +
gold ("Au") with a larger intercept of 58.00 meters of 2.98 g/t 2E+Au
(Hole WB027). Results also included 11.5 meters grading 7.18 g/t 2E + Au
(Hole WB031) and 8.5 meters of 4.8 g/t 2E+Au (Hole WB-034). The deposit
remains open. See Technical Report titled "Updated Exploration Results
and Mineral Resource Estimate for the Waterberg Platinum Project, South
Africa located on the Northern Limb of the Bushveld Complex", with an
effective date of November 5, 2012 (the "Updated Waterberg Report")
available at www.sedar.com.
-- On September 11, 2012, the Company announced that Rustenburg Platinum
Mines Ltd., a wholly owned subsidiary of Anglo American Platinum
Limited, had exercised its first right of refusal to purchase the off-
take of concentrate from Project 1. Formal agreements are in process.
-- On September 4, 2012, the Company announced an initial 6.6 million ounce
inferred mineral resource estimate at the Waterberg project (initial
inferred mineral resource estimate of 68 million tonnes at 3.01 g/t
2E+Au, comprised of 0.94 g/t Pt, 1.71 g/t Pd, 0.37 g/t Au. See the
Updated Waterberg Report.
-- On July 9, 2012, the Company's board of directors approved the adoption
of a shareholder rights plan (the "Plan") subject to shareholder
approval. The Plan is now effective and will be set to a vote of the
shareholders at the Company's annual general and special meeting
scheduled for January 8, 2013.
-- On May 23, 2012, the Company announced the expansion of the Waterberg
discovery. Multiple layers of higher grade mineralization were
intersected at depths as shallow as 122 to 122 meters from surface.
-- On April 4, 2012, the Government of South Africa issued a formal Mining
Right to the Company for Project 1 in terms of section 23(1) of the
Mineral and Petroleum Resources Development Act, 28 of 2002, subject to
environmental authorizations, water use licenses and compliance with
applicable legislation on an ongoing basis.
Results For The Year Ended August 31, 2012
During the year ended August 31, 2012, the Company incurred a
net loss of $10.59 million (August 31, 2011 - net loss of $8.89
million). General and administrative expenses during the period
were reduced from the previous year to $5.37 million (August 31,
2011 - $6.79 million), losses on foreign exchange, due primarily to
a weaker Rand at period end, were $3.59 million (August 31, 2011
-$0.12 million), while stock based compensation expense, a non-cash
item, totalled $2.01 million (August 31, 2011 - $6.91 million).
Finance income consisting of interest earned and property rental
fees in the year amounted to $3.94 million (August 31, 2011- $3.79
million). Loss per share for the year amounted to $0.06 per share,
as compared to a loss of $0.05 per share for the comparative year
of fiscal 2011.
Accounts receivable at August 31, 2012 totalled $4.70 million
while accounts payable and accrued liabilities amounted to $7.78
million. Accounts receivable were comprised primarily of value
added taxes repayable to the Company in South Africa and amounts
receivable from partners. Accounts payable included accrued
professional fees, contract construction fees, drilling expenses,
engineering fees and regular trade payables for ongoing exploration
and development costs and administration.
Total expenditures by the Company for development and purchases
of property and equipment for Project 1 during the year totaled
approximately $37 million, before including the effects of foreign
currency exchange rate fluctuations. Expenditures by the Company
during the year for exploration on Waterberg were approximately
$6.68 million, of which $3.36 million was funded by joint venture
partner Japanese Oil, Gas and Metals National Corporation
("JOGMEC"). Mineral property acquisition and exploration
expenditures in Canada during the year totaled $1.89 million.
Outlook
The Company's objectives for the year ahead are to complete the
senior loan facility and other financing and move into a safe and
efficient Phase 2 construction of Project 1, to further the
geological understanding of the near surface Waterberg platinum,
palladium and gold deposit and to further explore the new northern
portion of the Bushveld Complex discovered by the Company.
Phase 1 construction at Project 1 is expected to be completed on
budget. Phase 2 development will commence once the project loan
facility and additional financing from the Company are available.
Phase 2 is to include a second twin decline access south of the
central twin decline development, underground lateral development,
a milling and concentrating facility and a tailings impoundment
area.
In conjunction with ongoing cost estimation work and banking
preparations, an updated project schedule for Phase 2 has been
completed by the Company. Plant and facility construction and
commissioning are estimated to take up to two years to complete.
Full commercial production is estimated to occur after a two year
ramp-up period subsequent to the commissioning of the plant. The
Merensky Reef is scheduled to be mined in the first approximately
13 years of the mine life. Steady state production is modelled at
an average annual rate of 275,000 4E ounces of (platinum,
palladium, rhodium and gold collectively) ounces in concentrate (on
average during the nine years of peak production). See the
technical report titled "Updated Technical Report (Updated
Feasibility Study Western Bushveld Joint Venture Project 1
(Elandsfontein and Frischgewaagd)" dated November 20, 2009 with an
effective date of October 8, 2009 (the "UFS") available at
www.sedar.com.
At the Waterberg project, in the newly discovered "north of the
North Limb" of the Bushveld Complex region, approximately 28 holes
have been drilled since the cut off for the initial inferred
mineral resource. Additional assay results for many holes are
pending at this time. PGE mineralization has now been intercepted
in drilling for approximately 5.5 km of strike length. The "T"
layers have been intercepted from 122 metres below surface to 1,375
metres deep.
A US $8.37 million 2012 drilling program at Waterberg funded by
JOGMEC and the Company is nearing completion. Planning for a 2013
program by the Waterberg joint venture is in progress, including
funding for an updated resource estimate and then a preliminary
economic assessment. Interpretation of current drilling combined
with geophysical survey data indicates that the currently granted
prospecting rights allow for up to six kilometres of northeasterly
strike length before the system strikes onto the adjacent permit
area, which is under registered application to the Company. The
up-dip extension of the deposit to the east will be drilled once
that licence area, now under registered application, is granted to
the Company on behalf of the Waterberg joint venture.
About Platinum Group Metals Ltd.
Platinum Group is based in Johannesburg, South Africa and
Vancouver, Canada. The Company's main asset is a 74% interest in
Project 1 near Rustenburg, South Africa, where a Phase 1
construction budget of US $100 million is in progress, including
underground development. Project 1 has an estimated steady state
production of 275,000 ounces per year of platinum group metals.
Platinum Group also has active exploration programs with drilling
at the Sable joint venture and Waterberg joint venture in South
Africa and active exploration in Canada for platinum and
palladium.
Qualified Person
R. Michael Jones, P.Eng., the Company's President, Chief
Executive Officer and a significant shareholder of the Company, is
a non-independent qualified person as defined in National
Instrument 43-101 Standards of Disclosure for Mineral Projects and
is responsible for preparing the technical information contained in
this news release.
On behalf of the Board of Platinum Group Metals Ltd.
Frank R. Hallam, CFO and Director
This press release contains forward-looking information within
the meaning of Canadian securities laws and forward-looking
statements within the meaning of U.S. securities laws (collectively
"forward-looking statements"). Forward-looking statements are
typically identified by words such as: believe, expect, anticipate,
intend, estimate, plans, postulate and similar expressions, or are
those, which, by their nature, refer to future events. All
statements that are not statements of historical fact are
forward-looking statements. Forward-looking statements in this
press release include, without limitation, statements regarding the
Company's plans to move into full scale development, the estimated
completion of Phase 1 on Project 1, the timing of any
debt/financing for Project 1, the commencement of Phase 2 on
Project 1, the completion of off-take negotiations, the timing of
first ore production and concentrate sales, and further exploration
on the Company's properties. In addition, the results of the UFS
and the Updated Waterberg Report may constitute forward-looking
statements to the extent that they reflect estimates of
mineralization, capital and operating expenses, metal prices and
other factors. Although the Company believes the forward-looking
statements in this press release are reasonable, it can give no
assurance that the expectations and assumptions in such statements
will prove to be correct. The Company cautions investors that any
forward-looking statements by the Company are not guarantees of
future results or performance, and that actual results may differ
materially from those in forward looking statements as a result of
various factors, including, but not limited to, variations in
market conditions; the nature, quality and quantity of any mineral
deposits that may be locate;, the Company's ability to obtain any
necessary permits, consents or authorizations required for its
activities; the Company's ability to successfully complete hedging
establishment and off-take negotiations; the Company's ability to
produce minerals from its properties successfully or profitably, to
continue its projected growth, or to be fully able to implement its
business strategies and other risk factors described in he
Company's Form 40-F annual report, annual information form and
other filings with the SEC and Canadian securities regulators,
which may be viewed at www.sec.gov and www.sedar.com,
respectively.
The Toronto Stock Exchange and the NYSE MKT LLC have not
reviewed and do not accept responsibility for the accuracy or
adequacy of this news release, which has been prepared by
management.
Contacts: Platinum Group Metals Ltd., Vancouver R. Michael Jones
President (604) 899-5450 / Toll Free: (866) 899-5450 Platinum Group
Metals Ltd., Vancouver Kris Begic VP, Corporate Development (604)
899-5450 / Toll Free: (866) 899-5450 (604) 484-4710 (FAX)
www.platinumgroupmetals.net
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