Polymet Reports Fiscal 2008 Fourth Quarter And Full Year Results
Hoyt Lakes, Minnesota, April 30, 2008 – PolyMet Mining Corp. (TSX: POM; AMEX: PLM) (“PolyMet” or the “Company”) reported today its financial results for the its fiscal year and quarter ended January 31, 2008, which have been filed as part of the Company’s financial results for the year ended January 31, 2008 at www.polymetmining.com and on SEDAR and EDGAR. All amounts are in U.S. funds.
PolyMet controls 100% of the development-stage NorthMet copper-nickel-precious metals ore-body and the nearby Erie Plant, located near Hoyt Lakes in the established mining district of the Mesabi Iron Range in northeastern Minnesota.
At January 31, 2008 we had cash and cash equivalents of $20.084 million compared with $8.897 at January 31, 2007. During the year ended January 31, 2008 we raised $39.826 million net of expenses from an equity private placement and exercise of stock options, and we repaid $2.000 million on outstanding notes payable to Cleveland Cliffs, Inc. related to our acquisition of the Erie Plant.
Fourth quarter net loss for the three months ended January 31, 2008 was $1.909 million compared with $1.586 million in the prior year period. Other loss was $798,000 in the period compared with a loss of $466,000 in the prior year period reflecting higher interest income as a result of greater cash balances that more than offset lower interest rates and a gain on foreign exchange conversion as a result of Canadian-US dollar exchange rate, compared with a loss on foreign exchange conversion in the prior period. Offsetting these items, we reduced the carrying value of an investment we made for strategic reasons by $1.050 million.
For the full year ended January 31, 2008 we reported a loss of $3.690 million compared with $17.893 million in the prior year. Upon completion of the Definitive Feasibility Study, from October 1, 2006 we have capitalized costs related to our NorthMet Project. Prior to that date, $8.844 million of pre-feasibility costs were expensed during the year ended January 31, 2007. In the year ended January 31, 2008, general and administrative expense of $4.399 million included $635,000 of non-cash, stock-based compensation compared with the prior year when general and administrative expense of $8.974 million included $4.723 million of non-cash, stock-based compensation and $1.289 million of non-cash bonus share expense.
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PolyMet Mining Corp. (www.polymetmining.com) is a publicly-traded mine development company that controls 100% of the NorthMet copper-nickel-precious metals ore body through a long-term lease and 100% of the Erie Plant, a large processing facility located approximately six miles from the ore body in the established mining district of the Mesabi Range in northeastern Minnesota. PolyMet has completed its Definitive Feasibility Study and is seeking environmental and operating permits to enable it to commence production in the second half of 2009. The NorthMet Project is expected to require approximately one million man hours of construction labor and create at least 400 long-term jobs, a level of activity that will have a significant multiplier effect in the local economy.
POLYMET MINING CORP.
Per: “Joe Scipioni”
Joe Scipioni, President
For further information, please contact:
+1 (604) 669-4701
President & Chief Executive Officer
+1 (218) 225-4417
Chief Financial Officer
+1 (218) 225-4417
VP Public, Governmental and Environmental Affairs
This news release contains certain forward-looking statements concerning anticipated developments in PolyMet’s operations in the future. Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimates,” “potential,” “possible,” and similar expressions, or statements that events, conditions or results “will,” “may,” “could,” or “should” occur or be achieved. These forward-looking statements may include statements regarding exploration results and budgets, reserve estimates, mineral resource estimates, work programs, capital expenditures, timelines including timelines for third-party studies and issuance of permits to operate by various government agencies, strategic plans, the market price of metals, costs, or other statements that are not a statement of fact. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements due to a variety of risks, uncertainties and other factors. PolyMet’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made, and PolyMet does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations and opinions should change.
Specific reference is made to PolyMet’s most recent Form 20-F/Annual Information Form on file with the SEC and Canadian securities authorities for a discussion of some of the risk factors and other considerations underlying forward-looking statements.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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