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PolyMet Mining (TSX:POM) reported its financial results for the year ended January 31, 2015. The company reported a $7.276 million loss for the year, compared with $8.132 million for the year previous. As of January 31, 2015, PolyMet had cash and cash equivalents of $9.301 million.
- Completion of the public review and comment period on the supplemental draft Environmental Impact Statement (SDEIS) on March 13, 2014.
- U.S. Environmental Protection Agency EC-2 rating of the SDEIS, the highest rating for a mine proposal, so far as we are aware.
- The Minnesota Department of Natural Resources (MDNR), the U.S. Army Corps of Engineers and the U.S. Forest Service (the Co-lead Agencies) made substantial progress on responding to the 58,000 public comments received on the SDEIS. In October 2014, the Commissioner of the MDNR indicated at a public meeting that he thought preparation of the final EIS would be completed in the spring of 2015.
- PolyMet advanced its Definitive Cost Estimate and Project Update.
- PolyMet secured a $30 million loan facility from Glencore, which is expected to fund the company through fiscal 2016. PolyMet received the first tranche of $8 million prior to January 31, 2015 and the second tranche of $8 million on April 15, 2015. The remaining $14 million is scheduled to be drawn in two further tranches on or before July 1, 2015 and October 1, 2015. Glencore also agreed to a one-year extension of $25 million initial principal convertible debentures, originally issued in 2008, that were due September 30, 2014.
The company also outlined its goals and objectives for the year to January 31 2016:
- Publication of the final EIS in the Minnesota Environmental Quality Board Monitor and the Federal Register, which PolyMet anticipates will be in the summer of 2015.
- Submission of permit applications around the same time as publication of the final EIS.
- Decision on state permits within 150 days of application under state guidelines.
- Records of Decision on the federal 404 Wetland Permit and the Land Exchange.
- Completion of the Definitive Cost Estimate and Project Update.
- Construction finance plan including commitment of debt prior to the issuance of permits but subject to typical conditions precedent, such as receipt of permits.
PolyMet president and CEO, Jon Cherry, said:
Our 2015 fiscal year demonstrated significant progress as a result of a tremendous amount of hard work on the part of the PolyMet team and its technical and legal advisors as well as by the various state and federal government agencies and their advisors and consultants. We continue to enjoy strong support for the project statewide and especially on the Iron Range, where we can strengthen and diversify the economy of northeastern Minnesota and continue its mining heritage. Complete and thorough analysis and review of the extensive comments on the SDEIS has been essential in order for the Co-lead Agencies to develop a robust final EIS and lay the basis for permits to be issued. This groundwork places PolyMet in a strong position as we progress through completion of permitting, arranging finance and then to the ultimate objective of building and operating the NorthMet Project.
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