PolyMet Mining Corp., which has not yet developed its mining revenue stream, reported a $900,000 loss for the three months ended June 30 compared with $2.7 million for the prior year period. The reduction was attributed to lower finance costs and a non-cash loss on a land exchange in the prior year period.
Excluding non-cash compensation, general and administrative expenses for the three months were $900,000 compared with $1.2 million for the prior year period.
Loss for the first six months was $6.7 million compared with $10.4 million for the prior year period primarily due to a lower non-cash loss on debenture modification and a non-cash loss on the land exchange in the prior year period. Excluding non-cash compensation, general and administrative expenses for the six months ended June 30 were $2.5 million compared with $2.8 million a year ago.
“We continued our forward momentum in the second quarter with the completion of the rights offering, cleaning up our balance sheet and allowing us to progress financing alternatives for the project,” Jon Cherry, president and CEO, said in the report.
PolyMet said it made significant progress during 2018 and 2019 to date, receiving key permits and approvals required to construct and operate it NorthMet mining project. It also secured title to the surface rights over and around the NorthMet mineral rights.
PolyMet released an updated technical report that included an assessment of higher potential production scenarios, and secured additional financing to complete permitting, including required wetland credits and financial assurance, advanced final engineering and other
In June, the company completed a $265 million rights offering, fully backstopped by Glencore AG, with the proceeds used to fully repay outstanding debt. Glencore’s ownership of shares increased to 71.6 percent, which is a matter of controversy with project opponents.
In preparation for construction, the company completed geotechnical investigations, installed monitoring wells, advanced project execution planning and implemented its environmental management system.
In March 2019, the company received the federal Record of Decision and wetlands permit from the U.S. Army Corps of Engineers, which was the last key permit or approval needed to construct and operate the NorthMet Project.