TIDMPPN
RNS Number : 5720G
Platmin Limited
13 May 2011
For immediate release
PLATMIN DECLARES COMMERCIAL PRODUCTION; PRODUCTION UP 33%
Y-O-Y
TUSCHENKOMST/SEDIBELO WEST, "ONE OREBODY-ONE MINE"
NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES
NEWSWIRE SERVICES
May 13, 2011: TORONTO: Platmin Limited ("Platmin" or "the
Company"; TSX/AIM: PPN; JSE: PLN) today announced production
results from its Pilanesberg Platinum Mine ("PPM") and financial
results for the quarter ended March 31, 2011. This release should
be read in conjunction with the Company's March 31, 2011 Quarterly
Financial Statements and Management Discussion & Analysis for
the March 31, 2011 quarter, available at www.platmin.com and filed
on www.sedar.com.
Production of 19,148 4E ounces (4E ounces in this release refers
to platinum, palladium, rhodium and gold) for the quarter ended
March 31, 2011 was some 33% higher than Q1 FY2010 (14,393 4E
ounces). CEO Tom Dale noted that although modest reef stockpiles
had been generated during the quarter, various operating pressures
had limited volumes through the concentrator.
Sales revenue for the quarter of US$26.040 million reflects an
average basket price of US$1,570 per 4E ounce, some 15% higher than
Q1 FY2010 (US$1,370 per 4E ounce). Rand strength reduced the basket
price improvement in rand terms to 7% (Q1 FY2011 ZAR10,959; Q1
FY2010 ZAR10,249).
From January 1, 2011, PPM declared commercial production and the
results of operations are now reported in the statement of income.
As the build-up continues, the Company recorded a net loss for the
quarter ended March 31, 2011 of US$34,834 million, or US$0.04 per
share.
The principal focus of Platmin is to build up PPM's production
from its Tuschenkomst Pit to the levels it forecast in the bankable
feasibility study ("BFS"). The build-up profile remains materially
unchanged with monthly production forecast to reach 12,000 4E
ounces by end 2011 provided the planned volumes of waste stripping
can be achieved. Current planning provides for the monthly level of
metals output forecast in the BFS by end 2012 of 20 000 4E ounces,
again subject to the achievement of the planned volumes of waste
stripping.
Dale highlighted that although budgeted volumes of waste
stripping had not been achieved, and that this remained the core
operating focus and challenge, improved control of the sequencing
of waste stripping had helped generate modest reef stockpiles.
Management aims to accelerate the build-up of stockpiles to ensure
processing flexibility.
PPM assumed joint managerial responsibility for the plant with
the appointed contractor during February 2011 and volumes milled
started to improve during the second half of April. The replacement
of 3 inclined grizzlies with vibrating feeders, effectively
debottlenecking the run of mine bins, combined with the pressures
created by the bulk test of UG2 reef through the dense medium
separator ("DMS") and the steadily increasing volumes of hard
sulphide ores, has improved the feed to the concentrator. The
results of the bulk test of upgrading the high grade UG2 reef
through the concentrator were promising and slight modifications to
the plant should provide the flexibility to also upgrade the
Merensky and Pseudo reefs through the DMS.
On March 23, 2011 Platmin announced the acquisition of an
incremental 5.99 million 4E inferred resource ounces (42.57 million
tonnes at a grade of 4.38 g/t), contained within the western
portion of the Sedibelo PGM Project Concession ("Sedibelo West")
from the Bakgatla Ba Kgafela Tribe ("Bakgatla") and Itereleng
Bakgatla Mineral Resources (Proprietary) Limited ("IBMR"), for a
total purchase consideration payable in cash of US$75.000 million
(US$82.000 million including VAT). This is equivalent to US$12.50
per 4E inferred resource ounce.
Sedibelo West is contiguous with and down-dip of the eastern
boundary of the Tuschenkomst property, where the PPM opencast
mining operation is currently taking place.
The Sedibelo West purchase consideration and VAT thereon was
classified as restricted cash at March 31, 2011, and subsequently
transferred to an escrow account, pending the DMR's approval for
Sedibelo West to be incorporated into PPM's Tuschenkomst Mining
Rights.
The acquisition of Sedibelo West will add value to PPM by:
-- significantly increasing the resource base accessible from
the existing Tuschenkomst pit;
-- extending the current life of mine;
-- providing operational flexibility, once waste stripping is
complete, particularly in the north pit;
-- directly accessing sulphide ore with high recoveries (in the
absence of oxide and transitional ore).
Optimisation and mine planning studies to maximize the value of
the enlarged PPM/Sedibelo West property have begun, and should be
concluded during the 2011 financial year.
Platmin's balance sheet remains strong. Following the successful
conversion of all of its US$135.000 million worth of debentures the
company holds unrestricted cash totalling US$177.000 million and
has no material debt.
In line with it's policy, Platmin has not sold forward any of
its production.
Other significant developments since the beginning of 2011
include:
-- On February 28, 2011, the Pallinghurst promissory note of
US$26.000 million entered into on March 22, 2010 was repaid in
full, together with accrued interest and structuring fees,
totalling US$28.822 million;
-- On March 23, 2011 Platmin acquired an effective 50% interest
in power and water rights and certain other assets pertaining to
the larger Sedibelo area. These rights, the acquisition of the
Sedibelo West PGM property, and the commonality of shareholders
across other neighbouring properties, leaves Platmin well placed to
participate in any further consolidation of adjacent properties on
the Western Limb of the Bushveld Complex;
-- On March 23, 2011, Kgosi Molefe John Pilane, the appointed
traditional leader of the Bakgatla, was invited to join the Board
of Platmin;
-- On March 31, 2011, the Company announced that all the
conditions precedent for the conversion of all the convertible
debentures had been fulfilled and that conversion had taken place.
As a consequence, 160,714,286 new Platmin common shares have been
issued and Platmin now has 910,395,053 common shares in issue;
-- An application to amend the Environmental Management Plan to
convert the open void being created at the Tuschenkomst Pit into a
water storage facility has been prepared and will be lodged with
the DMR during May 2011. Should such application be granted, the
cost of rehabilitating the pit will reduce and a portion of the
restricted cash held to meet the rehabilitation costs would be
released. Such amount will be determined upon final approval by the
DMR.
For further information:
Charmane Russell Russell & Associates +27 11 880 3924
+27 82 372 5816
Charles Batten
Investec Bank plc (Nominated Advisor)
+44 20 7 597 4000
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This market release contains "forward-looking information" which
may include, but is not limited to, statements with respect to the
future financial and operating performance of Platmin Limited (the
"Company" or "Platmin"), its subsidiaries and affiliated companies
(which together with Platmin is referred to as "the Platmin Group"
or "the Group"), and its mineral projects, the future price of 4E
metals (4E refers to platinum, palladium, rhodium and gold), 4E
production levels, mining rates, the future price of other base
metals, future exchange rates, the estimation of mineral resources
and reserves, the realization of mineral resource estimates or
their conversion into reserves, costs and future costs of
production, capital and exploration expenditures, including ongoing
capital expenditure at the Pilanesberg Platinum Mine ("PPM"), costs
and timing of the development of new deposits, costs and timing of
the development of new mines, costs and timing of future
exploration, requirements for additional capital, government
regulation of mining operations and exploration operations, timing
and receipt of approvals, licenses, and conversions under South
African mineral legislation, environmental risks, title disputes or
claims, limitations of insurance coverage and the timing and
outcome of regulatory matters. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", "targeted" or
"believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved.
Forward-looking statements in this market release, amongst
others, forecast production reaching a monthly rate of 12,000 4E
ounces by end FY2011 and 20,000 4E ounces by end FY2012 provided
the planned volumes of waste stripping can be achieved; lodging of
an amended Environmental Management Plan in May 2011; recovery
rates and grade; targets, estimates and assumptions in respect of
4E metal prices and production; allocation of funds for current
commitments; and the timing and completion of definitive
feasibility engineering studies at the Mphahlele, Grootboom and
Loskop Projects.
Such forward-looking statements are based on a number of
material factors and assumptions, including, that contracted
parties provide goods and/or services on the agreed time frames,
that budgets and production forecasts are accurate, that equipment
necessary for construction and development is available as
scheduled and does not incur unforeseen break downs, that no labour
shortages or delays are incurred, that plant and equipment function
as specified, that geological or financial parameters do not
necessitate future mine plan changes, that no unusual geological or
technical problems occur, and that grades and recovery rates are as
anticipated in mine planning.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Platmin Group to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include, among others, general business, economic,
competitive, political and social uncertainties; the actual results
of current exploration and mining activities; development and
operational risks; title risks; regulatory risks; conclusions of
economic evaluations and studies; fluctuations in the value of the
United States dollar relative to the Canadian dollar or South
African rand; changes in project parameters as plans continue to be
refined; future prices of .4E metals; possible variations of ore
grade or recovery rates (including the existence of potholes,
faults and other geological conditions that may affect the
existence or recovery of resources and reserves); failure of plant,
equipment or processes to operate as anticipated; accidents, labour
disputes, industrial unrest and strikes and other risks of the
mining industry; political instability, insurrection or war; the
effect of HIV/AIDS on labour force availability and turnover;
delays in obtaining governmental approvals or financing or in the
completion of development or construction activities, as well as
those factors communicated in the section entitled "Risk Factors"
of Platmin's current annual information form ("AIF") and its final
short form prospectus dated May 5, 2010, which can both be viewed
at www.sedar.com. Although Platmin has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results to differ from those anticipated,
estimated or intended.
Forward-looking statements contained herein are made as of the
date of this market release MD&A and Platmin disclaims any
obligation to update any forward-looking statements, whether as a
result of new information, future events or results or otherwise.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements due to the inherent uncertainty
therein.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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