Platinum Group Metals Ltd. (TSX:PTM) reported the company’s financial results for the six months ended February 28, 2018 and provided an update on the company’s outlook.
As quoted in the press release:
During the six months ended February 28, 2018, the Company incurred a net loss of US$26.8 million (February 28, 2017 – net loss of US$58.7 million). During the current six-month period, care and maintenance costs and interest costs were charged to earnings, whereas in the previous comparable period they had been capitalized. Also, in the previous comparable period an impairment of US$55.2 million had been recognized. Other items include a foreign exchange loss of US$3.2 million (February 28, 2017 – US$0.5 million loss) due to the US Dollar increasing in value relative to the parent company’s functional currency of the Canadian Dollar. Also, a gain on fair value of financial instruments of US$1.9 million was recognized in the current period due to a decrease in the value of the embedded derivatives in the Company’s convertible notes, which did not exist in the previous comparable period.
Accounts receivable at February 28, 2018 totalled US$2.9 million, comprised of value added taxes repayable to the Company in South Africa, amounts due to/from partners and proceeds on sale of concentrate. Accounts payable and accrued liabilities amounted to US$10.8 million, including US$4.3 million in trade payables, US$3.5 million in mining contractor settlements (which were paid post quarter end from funds held in escrow) and US$3.0 million in lease obligations on equipment the company intends to sell.
During the six-month period approximately US$3.9 million was spent at the Waterberg project for engineering and exploration activities. At period end, US$24.9 million in net costs had been capitalized to the Waterberg project. Total expenditures on the property since inception are approximately US$53 million.