Welcome!

News Feed Item

Platinum Group Reports Q3 2014 Financial and Operating Results

VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA -- (Marketwired) -- 07/11/14 -- Platinum Group Metals Ltd. (TSX: PTM)(NYSE MTK: PLG) ("Platinum Group" or the "Company") reports the Company's financial results for the nine months ended May 31, 2014. For details of the consolidated financial report (the "Financial Report") and Management's Discussion and Analysis for the nine months ended May 31, 2014 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 Report from the Company free of charge and are encouraged to visit the Company's website at www.platinumgroupmetals.net.

Platinum Group is focused on the construction of the WBJV Project 1 platinum mine ("Project 1") located near Rustenburg, South Africa and on further exploration and engineering on the newly discovered Waterberg platinum deposit located near Mokopane, South Africa. At Project 1 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 1,600 persons at present involved in underground development, mining and construction activities at Project 1.

At Waterberg the Company is drilling with a total of 20 drill rigs and engineering is in progress for a Pre-Feasibility Study on the Waterberg Joint Venture. Seven drill rigs are located on the Waterberg Joint Venture completing in-fill drilling with the objective of converting inferred resources to the indicated category. Results to date have been consistent with the deposit model. Thirteen drill rigs are working on the Waterberg Extension permits with the objectives of in-filling and expanding this portion of the deposit.

Recent Highlights

--  On June 12, 2014 the Company announced an increase to the inferred
    mineral resource estimate for the Waterberg Joint Venture and an initial
    inferred mineral resource estimate for the adjacent Waterberg Extension
    totaling an aggregate 29 million ounces of platinum, palladium, rhodium
    and gold. Total inferred resources in the "T" and "F" layers are
    estimated at 287 million tonnes grading 3.15 g/t 4E (0.94g/t Pt, 1.92
    g/t Pd, 0.04 g/t Rh, 0.25 g/t Au, 30%, 61%, 1%, 8% respectively).

--  On March 4, 2014 the Company announced drilling results for the
    Waterberg Extension, confirming the continuation of the Waterberg
    deposit northward on strike for approximately 4.7 km from the known 5.4
    km long deposit on the Waterberg Joint Venture. Hole WE-022 intercepted
    56.02 metres assaying 3.18 g/t 3E (0.87 g/t Pt, 2.13 g/t Pd, 0.18 g/t
    including 22.00 metres assaying 4.11 g/t 3E (1.16 g/t Pt, 2.72 g/t Pd
    and 0.23 g/t Au)).

--  On February 14, 2014 the Company announced a positive independent
    Preliminary Economic Assessment ("PEA") for the Waterberg Joint Venture.
    The PEA recommends the project advance to the pre-feasibility stage of
    development. Details of the PEA include:

    --  Steady state production of 655,000 ounces of platinum, palladium and
        gold, "3E";
    --  A two year construction period planned in 2016 to 2018;
    --  A Project post-tax NPV (7.5% discount rate) of 5.1 billion Rand or
        US$509 million (10R/US$);
    --  Peak Funding of 8.85 billion Rand or US$ 885 million (10R/US$);
    --  Major risks to be assessed at pre-feasibility including smelting
        plans, water and power delivery and geotechnical work for mine
        design along with normal increased resource, metallurgical and cost
        confidence levels; and
    --  Opportunities include significant resource expansion, optimization
        of mine plans, mine ramp up profiles, increased metallurgical
        recoveries and smelter terms and consideration of adjacent deposit
        exploration

        See details and the risks and cautions to investors in the press
        release of February 14, 2013. The economic analysis is based on
        inferred resources and is preliminary in nature. Inferred resources
        are considered too speculative geologically to have economic
        considerations applied to them that would enable them to be
        categorized as mineral reserves. There is no certainty that the PEA
        will be realized. The estimates in this preliminary assessment are
        estimated at +/-30% accuracy on an engineering basis. The complete
        PEA technical report on the Waterberg Joint Venture property is
        filed on SEDAR (www.sedar.com).

The PEA was completed by international and South African engineering firm WorleyParsons. An NI 43-101 Technical Report entitled "Waterberg Mineral Project Preliminary Economic Assessment" dated effective February 14, 2014 has been filed on SEDAR and was prepared by Dr. Michael Roberts, MSc, PhD, SAIMM of Worley Parsons TWP and Kenneth Lomberg, B.Sc. (Hons) Geology, B. Com., M. Eng. Pr.Sci.Nat., MGSSA, of Coffey Mining (SA) Pty Ltd.

--  On December 31, 2013 the Company closed 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 $165 million.

--  On December 9, 2013, the Company announced that Hole WE 08 on the
    Waterberg Extension returned 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 (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 Joint Venture 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 eliminates the involvement of Africa Wide Mineral
    Prospecting and Exploration (Pty) Limited ("Africa Wide"), a 100%
    subsidiary of Johannesburg Stock Exchange listed Wesizwe Platinum
    Limited and will build upon previous technical and legal due diligence,
    and is subject to the finalization of a facility agreement, among other
    conditions.

Results For The Period

The Company's cash position at May 31, 2014 was $161 million(1). During the nine months ended May 31, 2014, the Company had a net loss of $7.6 million (May 31, 2013 - net loss of $10.7 million). General and administrative expenses during the period were $5.9 million (May 31, 2013 - $4.2 million), gains on foreign exchange, due primarily to a stronger Rand at period end, were $0.48 million (May 31, 2013 -$9.17 million loss). Non-cash items include a write down of $3.39 million (May 31, 2013 - $0.14 million) for non-core mineral property interests held in Ontario and a stock compensation expense of $2.22 million (May 31, 2013 - $1.17 million). Finance income consisting of interest earned and property rental fees in the period amounted to $3.4 million (May 31, 2013- $3.9 million). Net loss per share for the period amounted to $0.02 per share, as compared to a loss of $0.04 per share for the comparative period of fiscal 2013.

Accounts receivable at May 31, 2014 totalled $10.6 million while accounts payable and accrued liabilities amounted to $17.9 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 $103 million, before including the effects of foreign currency exchange rate fluctuations. Expenditures by the Company during the period for exploration on the Waterberg Joint Venture and the Waterberg Extension were approximately $8.4 million, with a further $0.9 million being funded for the Waterberg Joint Venture by 37% JV partner the Japan Oil, Gas and Metals National Corporation ("JOGMEC").

To date approximately 4.49 million man hours of construction work have been completed at the Project 1 platinum mine and approximately $337 million has been invested in construction, equipment and underground development. Underground development has reached the Merensky Reef and initial mining blocks are in detailed mine planning and early development. Stockpiling of early development reef tonnes is underway. Crusher, mill, ore silo and flotation circuit foundations are substantially complete and erection of structural steel has now commenced. Mill components have been ordered and are being fabricated with a number of items now complete. The primary mill shell, ends and trunions are on site as are most floatation and rougher circuit tanks. Construction of the water pipeline from the mill to a nearby main supply line is in progress. A 10MVA electrical supply was completed and energized in October 2013 and preparations for the next 10MVA service are moving forward as planned. Two ventilation raises and fans are fully operational to support underground development. Underground mining of multiple declines and headings continues. Capital costs have been in line with the cost budget estimate and first concentrate production is targeted for calendar fourth quarter of 2015, in line with previous guidance. Underground development delays or delays in the delivery of key components or services could result in delays to the first concentrate production or ramp up.

On July 1, 2014 the National Union of Metalworkers of South Africa ("NUMSA") began a legal or "protected" walkout by 220,000 metalworkers. At the time of writing NUMSA is in active wage negotiations with the employers' group, the Steel and Engineering Industries Federation of Southern Africa and the news commentary is currently optimistic for a near term resolution. The current strike has not impacted the project schedule at this time. If prolonged the strike may cause work on Project 1 to be delayed or potentially stopped for lack of supplies, equipment and consumables.

On October 18, 2013 and on March 3, 2014 Africa Wide failed to pay approximately US $43.32 million for its 26% share of unanimously approved cash calls to fund construction at Project 1. The Company estimates that Africa Wide will dilute to approximately a 17.1% holding in Project 1 holding and operating company Maseve Investments 11 (Pty) Ltd. ("Maseve") as a result of the missed cash calls. Africa Wide disagrees with the dilution calculation and the matter has been sent to binding arbitration for determination according to the terms of the Maseve Shareholders' Agreement. Arbitration hearings and proceedings were completed in Johannesburg on June 20, 2014 and a judgment from the Arbitrator is expected shortly.

Outlook

The Company's key business objectives and milestones for the next twelve months are:

--  to build the WBJV Project 1 platinum mine safely and in accordance with
    the planned schedule and budget;
--  to close a planned US $195 million new project loan facility or an
    alternate financing for Project 1 by the end of 2014 in order to secure
    all funding required for the completion of Project 1, including mill,
    underground development and the establishment of sustained operations;
--  the completion of a pre-feasibility study on the initial Waterberg Joint
    Venture deposit during calendar in early 2015; and
--  to continue exploration and definition drilling on the Waterberg Joint
    Venture and Waterberg Extension with eight or more drill rigs during
    2014.

(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.

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 Joint Venture with JOGMEC and Mnombo Wethu Consultants (Pty) Ltd. The Company has also expanded its exploration northward on to the Waterberg Extension area. As a result of the resource scale and thickness of the Waterberg deposit, the Waterberg Joint Venture and the Waterberg Extension are of increasing importance to the Company's business.

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 with reliance on the independent qualified person technical reports where appropriate.

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 Securities and Exchange Commission ("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.

Contacts:
Platinum Group Metals Ltd.
R. Michael Jones
President

Platinum Group Metals Ltd.
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
In his session at @ThingsExpo, Dr. Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, presented the findings of a series of six detailed case studies of how large corporations are implementing IoT. The session explored how IoT has improved their economic performance, had major impacts on business models and resulted in impressive ROIs. The companies covered span manufacturing and services firms. He also explored servicification, how manufacturing firms shift from se...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
For far too long technology teams have lived in siloes. Not only physical siloes, but cultural siloes pushed by competing objectives. This includes informational siloes where business users require one set of data and tech teams require different data. DevOps intends to bridge these gaps to make tech driven operations more aligned and efficient.
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...