Polymet Reports Fiscal 2009 Fourth Quarter And Full Year Results
Hoyt Lakes, Minnesota, May 1, 2009 – PolyMet Mining Corp. (TSX: POM; NYSE-A: PLM) (“PolyMet” or the “Company”) reported today its financial results for its fiscal year and quarter ended January 31, 2009, which have been filed as part of the Company’s financial results for the year ended January 31, 2009 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, 2009 PolyMet had cash and cash equivalents of $7.354 million compared with $20.084 million at January 31, 2008. During the year ended January 31, 2009 we drew $14.333 million net of expenses of the $50 million convertible debt financing with Glencore AG, and we repaid $1.400 million of 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, 2009 was $786,000 compared with $1,909,000 in the prior year period. General and administrative expenses were $779,000 for the quarter compared with $1,111,000 for the prior year period with the reduction reflecting primarily lower office and corporate wages expenses as a result of no bonuses paid out in the current period compared to the prior year period. Other loss was $7,000 in the period compared with $798,000 in the prior year period reflecting primarily an other than temporary investment loss of $93,000 compared with $1,050,000 in the prior year period.
For the full year ended January 31, 2009 we reported a loss of $4.536 million compared with $3.690 million in the prior year. The increase in the net loss for the period was primarily attributable to an other than temporary impairment loss of $1,365,000 (prior year period – $1,050,000); a decrease in interest income to $154,000 (prior year period – $1,168,000) due to lower cash balances and interest rates, and foreign exchange translation losses of $156,000 (prior period — gain of $566,000) as the United States dollar strengthened against the Canadian dollar in the current period while it weakened in the prior year period. General and Administrative expense in the year ended 31 January 2009 excluding non-cash stock based compensation expenses was $2,897,000 compared with $3,764,000 for the prior year period with the decrease being due to lower legal costs, lower investor relations costs and lower office and corporate wage expenses as a result of no bonuses paid out in the current year as compared with the prior year period.
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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. The NorthMet project is expected to require approximately 1.5 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:
Chief Financial Officer
+1 (646) 879-5970
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, mineral resource and mineral reserve estimates, work programs, capital expenditures, timelines including timelines for third-party studies and issuance of permit 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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