Platinum Group Reports Year End Financial Results
November 29, 2007
(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM-TSX; PLG-AMEX) (“Platinum Group”) announces the publication of the Company’s audited financial results for the year ended August 31, 2007. For complete details of the August 31, 2007 financial statements and Management’s Discussion and Analysis please see the Company’s filings on SEDAR (www.sedar.com) or on EDGAR (www.sec.gov/edgar/searchedgar/webusers.htm).
The Company’s cash position at August 31, 2007 was $12.67 million. The Company’s cash is invested with the Royal Bank of
in guaranteed investment certificates or in a current account. An additional $2.0 million was held in short term investments which consist of guaranteed investment certificates with original terms of more than 90 days. All amounts herein are reported in Canadian dollars unless otherwise specified. None of the Company’s cash has been invested in asset backed commercial paper. The Company also held marketable securities at year end with a book value of $210,000 and a market value of $2.084 million.
Accounts receivable at year end totalled $597,989 while accounts payable amounted to $2.29 million. Accounts receivable were comprised primarily of value added taxes repayable to the Company in
while accounts payable were due mostly for drilling, sampling, geophysical and engineering work conducted on the Western Bushveld Joint Venture (“WBJV”).
Total global exploration expenditures for the Company’s account in fiscal 2007, including the Company’s share of WBJV expenditures, totaled $4,531,533 (2006 - $5,474,479), and of this $3,775,890 was for the WBJV (2006 - $4,998,447) and $755,643 was for other exploration (2006 - $476,032). After meeting its earn in requirements in April 2006, Platinum Group Metals Ltd. is currently responsible for its 37% pro-rata share of expenditures for the WBJV. Total WBJV expenditures during fiscal 2007 by all Joint Venture partners totaled $10,497,472 (2006: $7,705,592).
The Company’s loss for the year ended August 31, 2007 amounted to $6.76 million or $0.12 per share as compared to $3.85 million or $0.08 per share for the prior year. The 2007 loss includes $1.49 million as a non-cash charge for Stock Based Compensation ($0.11 million for 2006). Also included is a charge for the right off of mineral property acquisition and deferred exploration costs of $1.32 million ($1.17 million for 2006). General overhead and administration costs for 2007 amounted to $4.59 million ($2.81 million for 2006) before interest income and management fess earned of $640,359 ($235,236 for 2006). The increase in general and administrative costs in 2007 is primarily the result of the Company’s increased activity level in South Africa and increased staffing levels as the Company prepares for potential project development in South Africa.
During 2007 the Company raised funding of $11,454,791 by issuance of 6,333,194 shares for the exercise common share purchase warrants and $625,575 by issuance of 914,375 shares for the exercise of stock options.
The Company’s key project is its 37% interest in the WBJV, a platinum exploration and development project on combined mineral rights covering approximately 72 square kilometres on the Western Bushveld Complex of
. The Company is primarily focused on the completion of a feasibility study for the WBJV and on obtaining relevant permitting from the Government of South Africa. Completion and announcement of the feasibility study results by the Company as operator of the WBJV is expected in early 2008. The feasibility study will be used for a project build decision and if implemented the Company would then need to complete project financing for its share of capital costs and expand its capabilities as operator. Permit applications are in process and final permitting is expected during 2008.
About Platinum Group Metals Ltd.
Platinum Group is based in
. Platinum Group has a management team in both
, which have successful track records of more than 20 years in exploration, mine discovery, mine construction and mine operations. The Company was formed in 2000 and is focused on the development of platinum operations. It holds significant mineral rights in the Northern and Western Bushveld Igneous Complex of South Africa.
Platinum Group is also a significant mineral rights holder in the area surrounding
’s only primary platinum and palladium mine near
On behalf of the Board of
Platinum Group Metals Ltd.
“Frank R. Hallam”
Chief Financial Officer and Director
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|For further information contact:|
R. Michael Jones, President
or John Foulkes, Manager Corporate Development
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450 / Toll Free: (866) 899-5450
Roth Investor Relations, NJ
Tel: (732) 792-2200
The TSX Exchange and the American Stock Exchange have not reviewed and do not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
This press release contains forward-looking statements within the meaning of Canadian and
U.S. securities laws. Such statements include, without limitation, statements regarding the timing of future activities by the Company, future anticipated exploration and development programs, the review of technical information, the discovery and delineation of mineral deposit and resources, business plans, potential mining scenarios, business trends and future operating factors. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. All statements that are not statements of historical fact are forward-looking statements. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company’s ability to obtain any necessary permits, consents or authorizations required for its activities, the Company’s ability to produce minerals from its properties successfully or profitably, to continue its projected growth, or to be fully able to implement its business strategies. In addition, forward-looking statements are subject to various risks, including that data is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment; no firm quotes for costs have been received; the legal right to mine the project discussed has not been confirmed or applied for and the process for such application is new in South Africa; the potential capital cost of the project is beyond the current means of the Company and there can be no assurance that financing for further work will be available. There are significant risks with respect to grade estimation, metallurgical recovery and mining plans that may result in over estimation or failure to meet targets. Any estimates, plans or studies prepared by or on behalf of other companies with respect to the project have not been prepared or reviewed by the Company or the Company’s QPs and such disclosure can’t and should not be in any way be attributed to the Company or the Company’s QPs, independent or non-independent. Any reference to Project 2 does not imply that this is a stand alone area for any potential mine plan. The reader is referred to the Company’s filings with the SEC and Canadian securities regulators for disclosure regarding other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.