Welcome!

News Feed Item

Platinum Group Reports Q1 2014 Financial and Operating Results

VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA -- (Marketwired) -- 01/10/14 -- Platinum Group Metals Ltd. (TSX: PTM)(NYSE MKT: PLG) ("Platinum Group" or the "Company") reports the Company's financial results for the three months ended November 30, 2013. For details of the consolidated financial statements (the "Financial Statements") and Management's Discussion and Analysis for the three months ended November 30, 2013 please see the Company's filings on SEDAR (www.sedar.com) or on EDGAR (www.sec.gov). Shareholders may request a copy of the complete Financial Statements from the Company free of charge and are encouraged to visit the Company's website at www.platinumgroupmetals.net.

The Company's cash position at November 30, 2013 was $79.9 million(1). At present the Company holds approximately $237 million in cash after receiving net proceeds of $166 million on December 31, 2013 pursuant to the closing of a bought deal financing (see details below).

Platinum Group is focused on the construction of the WBJV Project 1 platinum mine ("Project 1") located near Rustenburg, South Africa. The Company is also focused on further exploration and initial engineering on the newly discovered Waterberg platinum deposit located near Mokopane, South Africa where the Company is the operator of the Waterberg Joint Venture Project (the "Waterberg JV Project") with the Japan Oil, Gas and Metals National Corporation ("JOGMEC") and Mnombo Wethu Consultants (Pty) Ltd. ("Mnombo"). The Company has also expanded its exploration on to prospecting rights covering 530 square kilometres immediately adjacent and north of the Waterberg JV Project property (the "Waterberg Extension Project").

The Company's owners' team oversees engineering, procurement, construction and management firm DRA Mineral Projects (Pty) Ltd. and underground mining contractor JIC Mining Services. Including subcontractors there are approximately 1,000 persons at present involved in underground development, mining and construction activities at Project 1.

Platinum Group is finalizing a preliminary economic assessment on the Waterberg JV Project with engineering firm WorleyParsons TWP. In addition, eight drill rigs are ramping up on the Waterberg JV Project and Waterberg Extension Project following the holiday break with the objective of expanding and upgrading the newly discovered Waterberg platinum deposit.

Recent Highlights


--  On December 9 2013, the Company announced a bought deal financing for
    148.5 million common shares of the Company at a price of $1.18 per share
    resulting in gross proceeds of $175.23 million. The offering closed
    December 31, 2013 with net proceeds to the Company after fees,
    commissions and costs of approximately $166 million.

--  On December 9, 2013, the Company announced that Hole WE 08 at the
    Waterberg Extension Project returned preliminary assay values of 5.26
    grams/tonne "3E" platinum, palladium and gold (1.40g/t Pt, 3.59 g/t Pd
    and 0.27 g/t Au) over 53.22 metres (from 555.50 metres to 608.72 metres,
    estimated true thickness of approximately 44 metres). Hole WE 08 is
    located approximately 340 metres northward along strike from previously
    announced hole WE 02 (15.63 metres grading 3.16 g/t 3E, 1.11 Pt g/t,
    1.92 g/t Pd, 0.13 g/t Au) and approximately 1,600 metres directly along
    strike from the Waterberg JV Project deposit. The mineralization in WE
    08 has geological units and layering that is consistent with the deposit
    to the south. The intercept in WE 08 is open for expansion along strike
    and up and down dip.

--  On November 14, 2013, the Company reported the first available assay
    results from drilling on the Waterberg Extension Project in two
    intersections confirming the northward extension of the "Super F" zone.
    Drill holes WE 01 and WE 02, located respectively 700 metres and 1.4
    kilometres north of the known 5.4 kilometre long Waterberg platinum
    deposit, intersected "Super F" mineralization grade and average true
    thickness of 11 metres in the predicted position and geology with metal
    ratios consistent with the Waterberg platinum deposit.

--  Drilling on the Waterberg Extension Project in November 2013 added 4.7
    kilometres of confirmed F zone mineralization to the north of the
    Waterberg platinum deposit area and has now identified 23 kilometres of
    new Bushveld Complex, including the initial 5.4 kilometre long Waterberg
    platinum deposit.

--  On November 11, 2013, the Company announced a new mandate letter with
    Barclays Bank PLC, Absa Corporate and Investment Bank, a division of
    Absa Bank Limited, Caterpillar Financial SARL and Societe Generale
    Corporate & Investment Banking who have agreed to use commercially
    reasonable efforts to arrange a new project loan facility for up to US
    $195 million to continue development of the Project 1 platinum mine. The
    new mandate letter will build upon previous technical and legal due
    diligence, and is subject to the finalization of a facility agreement,
    among other conditions.

--  In a surprise decision on October 18, 2013, Africa Wide Mineral
    Prospecting and Exploration (Pty) Ltd. ("Africa Wide"), a subsidiary of
    Wesizwe Platinum Ltd. ("Wesizwe"), elected to not fund a 213 million
    Rand (approximately US $21.8 million) cash call for its 26% share of an
    approved six month forward construction budget for Project 1. This
    resulted in the requirements for a new lending mandate (as described
    above) and a restructured loan facility for Project 1. The Company
    calculates that, as a result of its decision, Africa Wide's share in the
    Project 1 operating company, Maseve Investments 11 Pty Ltd. ("Maseve"),
    will be diluted by approximately 5% based on a formula in the Maseve's
    shareholders' agreement, reducing Africa Wide to an approximately 21%
    interest. Africa Wide contends the dilution will be approximately 3.5%,
    and Africa Wide's actual dilution has been submitted to arbitration. The
    Company is currently working on a plan to sell Africa Wide's diluted
    percentage in Maseve to an alternative, qualified black economic
    empowerment partner.

--  On September 3, 2013, the Company announced an updated independent
    inferred resource estimate for the Waterberg JV Project of 167 million
    tonnes grading 3.26 grams per tonne of platinum, palladium and gold
    (0.98 g/t Pt, 1.97 g/t Pd, 0.32 g/t Au, Ken Lomberg QP) for a total of
    17.5 million ounces with significant copper and nickel credits. The
    estimate includes the "T1", "T2" and "F" layers in an extension of the
    Bushveld Complex discovered in late 2011. The shallowest edge of the
    known deposit is approximately 130 metres below surface with the
    resource estimate restricted to 1,000 metres vertical.

Results For The Period

During the three months ended November 30, 2013, the Company had net income of $0.47 million (November 30, 2012 - net loss of $1.7 million). General and administrative expenses during the period were $1.4 million (November 30, 2012 - $0.8 million), gains on foreign exchange, due primarily to a stronger Rand at period end, were $0.9 million (November 30, 2012 -$0.2 million loss). Finance income consisting of interest earned and property rental fees in the year amounted to $1.0 million (November 30, 2012- $0.6 million). Earnings per share for the period amounted to $0.00 per share, as compared to a loss of $0.01 per share for the comparative period of fiscal 2012.

Accounts receivable at November 30, 2013 totalled $3.2 million while accounts payable and accrued liabilities amounted to $18.1 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 contract construction fees, drilling expenses, engineering fees, accrued professional 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 period totaled approximately $33 million, before including the effects of foreign currency exchange rate fluctuations. Expenditures by the Company during the period for exploration on the Waterberg JV Project and the Waterberg Extension Project were approximately $2.1 million, with a further $0.4 million being funded by joint venture partner, JOGMEC.

To date approximately 3,153,000 man hours of construction work has been completed at the Project 1 platinum mine and approximately $254 million has been invested in construction, equipment and underground development. Underground development has reached the Merensky Reef, and initial mining blocks are in planning and early development. Stockpiling of early ore is underway. Crusher, mill and flotation circuit foundations are constructed to above ground level. Mill components have been ordered and large surface civil works areas are being constructed. A 10MVA electrical supply was completed and energized in October. One ventilation raise and fan is now functional and a second is in progress. Underground mining of multiple declines and headings continues. Capital costs have generally been within budget, however the project schedule is being affected by delays.

Outlook

As a result of the successful equity financing closed on December 31, 2013, the Company plans to re-establish a full construction pace at Project 1. Prior to January 2014 the Company had withheld the execution of significant new contracts for Project 1 pending the completion of additional debt or equity financing. Also as a result of the equity financing closed on December 31, 2013, the Company has allocated a 2014 budget for the Waterberg JV Project and Waterberg Extension Project of approximately $15 million.

In addition to the construction of Project 1, the Company's key business objectives for calendar 2014 will be:


--  to close the US $195 million project loan facility, or complete an
    alternate financing for Project 1, in order to secure all of the funding
    required for the completion of Project 1, including mill completion,
    underground development and the establishment of sustained operations;

--  the completion of a preliminary economic assessment on the initial
    Waterberg JV Project deposit during the first quarter of calendar 2014;
    and

--  to continue exploration and definition drilling on the Waterberg JV
    Project and Waterberg Extension Project with eight or more drill rigs
    during 2014.

About Platinum Group Metals Ltd.

Platinum Group is based in Johannesburg, South Africa and Vancouver, Canada. The Company's business is currently focused on the construction of the Project 1 platinum mine and the exploration and initial engineering on the newly discovered Waterberg platinum deposit, where the Company is the operator of the Waterberg JV Project with JOGMEC and Mnombo. The Company has also expanded its exploration northward on to the Waterberg Extension Project. As a result of the resource scale and thickness of the Waterberg deposit, the Waterberg JV Project and the Waterberg Extension Project have increased in importance in the Company's business over the period.

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

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.

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 ("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 completion of the New Project Loan Facility, the Company's ability to secure alternative financing, the Company's plans with respect to future exploration, development and production on the Company's projects including mine construction at Project 1, the dilution of Africa Wide's interest in Maseve and the ability of the Company to sell such diluted interest to another bona fide black economic empowerment partner. 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 located; metal prices; other prices and costs; currency exchange rates; the Company's ability to obtain any necessary permits, consents or authorizations required for its activities; the Company's ability to access further funding and 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 the 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.

Cautionary Note to U.S. Investors Regarding Estimates of Inferred Mineral Resources

This press release uses the terms "inferred mineral resources." We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the SEC does not recognize them. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estimates of "inferred mineral resources" may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally mineable.

(1) The Company holds cash in Canadian dollars, United States dollars and South African Rand, and changes in exchange rates may create variance in the cash holdings reported in Canadian dollars. All amounts herein are reported in Canadian dollars unless otherwise specified.

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
www.platinumgroupmetals.net

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...