Platinum Group Reports 2019 outlook
Recently Platinum Group Metals reports the Company's financial results and provides an update and outlook. The Company has focused its business on the palladium dominant Waterberg Project located on the North Limb of the Bushveld Complex in South Africa. Here is their outlook part:
The Company achieved several important business objectives during the past 12 months, including the repayment of a significant portion of the Company's secured debt and the completion of the Waterberg DFS. The positive results of the Waterberg DFS provide a solid base for the assessment of value for the Waterberg Project in the year ahead.
The support of the major shareholders over the past year has strengthened the Company. The positive market outlook for palladium, including the potential for continued palladium supply deficits, has been recognized by market analysts. The Company looks to 2020 with an optimistic outlook and renewed enthusiasm.
The Company's key business objective is to advance the palladium dominant Waterberg Project to a development and construction decision. The Company currently awaits the approval of the Waterberg DFS by the shareholders of Waterberg JV Resources (Pty) Limited, expected in December 2019.
After approval of the Waterberg DFS, within 90 business days Implats may elect to exercise a purchase and development option to increase its stake in Waterberg JV Co. from 15% to 50.01% by purchasing an additional 12.195% equity interest from the Japan Oil, Gas and Metals National Corporation for $34.8 million and earning a further 22.815% interest by making a firm commitment to an expenditure of $130.0 million in development work. Implats made a strategic investment of $30.0 million in November 2017 to purchase an initial 15% stake in the project.
At present, the Company continues to work on advancing project permitting, infrastructure servitudes and community relationships with its partners Implats, JOGMEC, Hanwa and Mnombo through a technical committee of Waterberg JV Co. Concentrate off take negotiations with Implats are currently in process, along with other off take possibilities being considered, subject to Implats' right to match.
An interim implementation budget of Rand 22.9 million (approximately $1.95 million) was approved by Waterberg JV Co. at a meeting of its Board of Directors on September 3, 2019.
The Company also advises that its Financial Statements for the fiscal year ended August 31, 2019, included in the Company's Form 20-F, contain an audit report from its independent registered public accounting firm that includes a going concern emphasis of matter. The foregoing statement is required by Section 610(b) of the NYSE American Company Guide.
As well as the discussions within this press release, the reader is encouraged to also see the Company's disclosure made under the heading, Risk Factors in the Company's Form 20-F, which was also filed as the Company's AIF in Canada.
