Copper, Nickel & Precious Metals in the U.S. Jon Cherry – President & CEO Douglas Newby...
Cautionary StatementThis presentation contains certain forward-looking statements concerning anticipated developments in P...
PolyMet Overview•  100% of NorthMet Ore Body •  Copper-nickel-precious metals •  located in the Mesabi Iron ...
NorthMet Project Location PolyMet Erie Plant NorthMet Ore Body Northshore Mining ...
(NYSE MKT: PLM);(TSX: POM) 5
TSX: POM; NYSE AMEX: PLMExisting Infrastructure In Place •  Tailings basin •  Road a...
Mill Capacity •  34 parallel rod/ball mill circuits – mine plan uses only 12 •  Each circuit ~ 3,000 ton-per-day capacit...
NorthMet Ore Body Disseminated, polymetalic deposit; low strip ratio, minimal over-burden (NYSE...
Resources & Project Economics LME ...
Future Potential Metallurgical plant will expand margins Existing Erie Plant has the capacity to operate at about three...
TSX: POM; NYSE AMEX: PLMEstimated Economic Benefit Construction • $475 million investment •  $312 million Ph...
Estimated Economic Benefits (cont.) Additional Economic Impact Annually Life of Mine ...
Permitting Process $46 million invested through July 31, 2012 on Environmental Review and Permitting ...
Path Forward Federal Record Supplemental ...
Strong Bipartisan Support State •  Governor Dayton (D) •  State representatives from the Iron Range (D&R) •  St...
Glencore Strategic Relationship Strategic relationship signed in October 2008 Marketing: •  Glencore will market/purch...
Senior ManagementJon Cherry President, CEO, Director Leader in mining environmental policy and new...
Key Statistics Stock Snapshot NYSE-A: PLM / TSX: POM Recent Share Price (NYSE-MKT) ...
Stock Price Chart Global Financial DEIS Crisis Published ...
Summary •  Pre-production US mining project differentiated by existing infrastructure in an existing mining distr...
Investor Contacts www.polymetmining.com Chief Financial Officer Douglas Newby ...
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Polymet Investor Presentation

Published on: Mar 4, 2016
Published in: Investor Relations      
Source: www.slideshare.net


Transcripts - Polymet Investor Presentation

  • 1. Copper, Nickel & Precious Metals in the U.S. Jon Cherry – President & CEO Douglas Newby – CFO October 2012 (NYSE MKT: PLM);(TSX: POM)
  • 2. Cautionary StatementThis presentation contains certain forward-looking statements concerning anticipated developments in PolyMet’s operations in the future.Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,”“estimates,” “potential,” “possible,” “projects,” “plans,” and similar expressions, or statements that events, conditions or results “will,”“may,” “could,” or “should” occur or be achieved or their negatives or other comparable words. These forward-looking statements mayinclude statements regarding our beliefs related to the expected project timelines, exploration results and budgets, reserve estimates,mineral resource estimates, continued relationships with current strategic partners, work programs, capital costs and expenditures, actionsby government authorities, including changes in government regulation, the market price of natural resources, estimated production rates,costs, ability to receive environmental and operating permits, construction costs and hours created, job creation and other economicbenefits, or other statements that are not a statement of fact.Forward-looking statements address future events and conditions and therefore involve inherent known and unknown risks anduncertainties. These risks, uncertainties and other factors include, but are not limited to, adverse general economic conditions, operatinghazards, inherent uncertainties in interpreting engineering and geologic data, fluctuations in commodity prices and prices for operationalservices, government regulation and foreign political risks, fluctuations in the exchange rate between Canadian and US dollars and othercurrencies, as well as other risks commonly associated with the industry. Actual results may differ materially from those in the forward-looking statements due to risks facing PolyMet or due to actual facts differing from the assumptions underlying its predictions.In connection with the forward-looking information contained in this presentation, PolyMet has made numerous assumptions, regarding,among other things: the geological, metallurgical, engineering, financial and economic advice that PolyMet has received is reliable, andis based upon practices and methodologies which are consistent with industry standards. While PolyMet considers these assumptions tobe reasonable, these assumptions are inherently subject to significant uncertainties and contingencies.PolyMet’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements aremade, and PolyMet does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs,expectations and opinions should change.Specific reference is made to PolyMet’s most recent Annual Report on Form 20-F for the fiscal year ended January 31, 2012 and in ourother filings with Canadian securities authorities and the U.S. Securities and Exchange Commission, including our Report on Form 6-Kproviding information with respect to our operations for the three months ended July 31, 2012 for a discussion of some of the risk factorsand other considerations underlying forward-looking statements.PolyMet’s financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"). All amountsare in U.S. funds. (NYSE MKT: PLM);(TSX: POM) 2
  • 3. PolyMet Overview•  100% of NorthMet Ore Body •  Copper-nickel-precious metals •  located in the Mesabi Iron Range mining corridor •  over 100 years of mining history•  100% of existing Erie Plant •  Adjacent to NorthMet ore body •  100,000 t/d processing capacity + infrastructure •  Low initial capital costs & staged development•  Advanced stage of environmental review •  Permitting 20 year project processing 32,000 t/d of ore •  Completed groundwater monitoring agreed with EPA •  Environmental modeling – regulatory compliance•  Strong community and political support•  Strategic alliance with Glencore AG •  The world’s largest commodities trading company •  Financing and marketing of all products (NYSE MKT: PLM);(TSX: POM) 3
  • 4. NorthMet Project Location PolyMet Erie Plant NorthMet Ore Body Northshore Mining Duluth Hibbing Taconite USS Minntac Complex United Taconite Mine—Plant NorthMet Project Mesabi Iron Range Project is located in the established Mesabi Iron Range mining corridor NorthMet is not located in the Boundary Waters watershed (NYSE MKT: PLM);(TSX: POM) 4
  • 5. (NYSE MKT: PLM);(TSX: POM) 5
  • 6. TSX: POM; NYSE AMEX: PLMExisting Infrastructure In Place •  Tailings basin •  Road and Railroad •  Crushing and Grinding Mills •  Water System •  Electrical System •  Warehouses and workshops (NYSE MKT: PLM);(TSX: POM) 6
  • 7. Mill Capacity •  34 parallel rod/ball mill circuits – mine plan uses only 12 •  Each circuit ~ 3,000 ton-per-day capacity (NYSE MKT: PLM);(TSX: POM)
  • 8. NorthMet Ore Body Disseminated, polymetalic deposit; low strip ratio, minimal over-burden (NYSE MKT: PLM);(TSX: POM)
  • 9. Resources & Project Economics LME Metal Prices - US$ Mineral Resources 2008 DFS Measured and Indicated Resources Average - 3 months to 8.31.2012 Update •  694 million tons @ 0.62% copper equivalent •  8.7 billion pounds copper equivalent Copper 3.40 /lb 7,496 /t 2.90 /lb Nickel 7.30 /lb 16,094 /t 12.20 /lb Cobalt 12.80 /lb 28,219 /t 23.50 /lb Production Rate – first 5 years Palladium 597 /oz 320 /oz •  32,000 tons of ore per day Platinum 1,441 /oz 1,230 /oz •  72 million lbs of copper a year Gold 1,606 /oz 635 /oz •  15 million lbs of nickel a year •  106,000 oz of combined precious metals a year Low Costs (2008 DFS Update) •  $312 million initial capital costs •  Copper cash cost $1.05/lbs (on co-product basis) Robust Economics (2008 DFS Update) •  After tax IRR: 30.6% (2008 DFS Update) •  Annual EBITDA: $217 million The Telegraph, Photo: ALAMY, 2012 http://www.telegraph.com (NYSE MKT: PLM);(TSX: POM) 9
  • 10. Future Potential Metallurgical plant will expand margins Existing Erie Plant has the capacity to operate at about three times planned production rate, supported by •  reserve expansion at NorthMet •  exploration success •  other known deposits in the area Expansion beyond the proposed project would require additional environmental review and permitting (NYSE MKT: PLM);(TSX: POM) 10
  • 11. TSX: POM; NYSE AMEX: PLMEstimated Economic Benefit Construction • $475 million investment •  $312 million Phase I •  $163 million Phase II Hydromet • 2 million construction hours Employment • 360 high-quality, stable mining jobs • 600+ indirect jobs in St. Louis Mining equipment - not PolyMet’s operation (www.azcompleteglass.com) County * * NorthMet Economic Impact 2011 Update UMD Labovitz School of Business and Economics (NYSE MKT: PLM);(TSX: POM) 11
  • 12. Estimated Economic Benefits (cont.) Additional Economic Impact Annually Life of Mine (20yrs) •St. Louis County $515M $10.3B •State and local revenues $15M $300M •Federal revenue $45M $900M * NorthMet Economic Impact 2011 Update UMD Labovitz School of Business and Economics (NYSE MKT: PLM);(TSX: POM) 12
  • 13. Permitting Process $46 million invested through July 31, 2012 on Environmental Review and Permitting (NYSE MKT: PLM);(TSX: POM) 13
  • 14. Path Forward Federal Record Supplemental of Decision /Preliminary State Permits Final EIS SDEIS Draft EIS Adequacy Issued Decision (NYSE MKT: PLM);(TSX: POM) 14
  • 15. Strong Bipartisan Support State •  Governor Dayton (D) •  State representatives from the Iron Range (D&R) •  State Republican caucus (R) Federal •  Senators Klobuchar and Franken (D) •  Representative Cravaack (R) Local •  Mayors of local cities, including Hoyt Lakes, Aurora, Ely (NYSE MKT: PLM);(TSX: POM) 15
  • 16. Glencore Strategic Relationship Strategic relationship signed in October 2008 Marketing: •  Glencore will market/purchase 100% of production •  Market related terms – pass through of LME/COMEX prices •  Covers metals, concentrates and intermediate products Financing: •  $29 million (including capitalized interest) loan exchangeable into stock at $1.50 per share •  $75 million equity at $1.99 per share (weighted Average) •  5.6 million warrants exercisable at $1.50 Total Investment: •  $117 million, including purchase of all 9.2 million shares previously owned by Cliffs Natural Resources and capitalized interest •  26% ownership of PolyMet’s stock, 35% including debt conversion/ warrant exercise (NYSE MKT: PLM);(TSX: POM) 16
  • 17. Senior ManagementJon Cherry President, CEO, Director Leader in mining environmental policy and new mining projects, 20 years with Rio Tinto in the U.S., 23 years experience in the industryDouglas Newby Chief Financial Officer Mine finance expert, former Chairman/CEO of Western Goldfields (now New Gold) ~30 years experienceJoe Scipioni Chief Operating Officer Engineer, 30 years with US Steel, community leader in northern MinnesotaBrad Moore Executive VP – Environmental and Government Affairs Permitting and regulatory expert, former senior Minnesota government officialAndy Clark VP – Project Development Engineer +35 years experience in mine and project construction. Formerly with Bateman EngineersLaTisha Gietzen VP – Public, Government and Environmental Affairs Engineer, formerly with US Steel and Cliffs NR, specialized in environmental/permitting in MinnesotaRyan Vogt Corporate Controller CPA, formerly with Big 4 firm and controller of privately-held service company (NYSE MKT: PLM);(TSX: POM) 17
  • 18. Key Statistics Stock Snapshot NYSE-A: PLM / TSX: POM Recent Share Price (NYSE-MKT) $1.13 12-month range $1.52 – 0.67 Trading volume (NYSE-MKT) 187,000 (200-day average) Market capitalization $206 million Capital Structure Shares outstanding 182.7 million of which, owned by Glencore 47.0 million (26%) (includes 5 million shares at $2.00 per share on 10.15.2012 ) Glencore Warrants 5.6 million @ $1.50 expire 12/2015 Other Warrants 1.5 million @ $1.77 expire 12/2015 or later Options 14.5 million @ US$1.95 (NYSE MKT: PLM);(TSX: POM) 18
  • 19. Stock Price Chart Global Financial DEIS Crisis Published Leadership Change EPA – DEIS Comments (NYSE MKT: PLM);(TSX: POM) 19
  • 20. Summary •  Pre-production US mining project differentiated by existing infrastructure in an existing mining district •  Late stage of environmental review/permitting •  Low risk construction and start-up •  Margin expansion through move to value added products combined with potential to expand production (NYSE MKT: PLM);(TSX: POM) 20
  • 21. Investor Contacts www.polymetmining.com Chief Financial Officer Douglas Newby (651) 389-4105 dnewby@polymetmining.com Vice President, Investor Relations Jenny Knudson (651) 389-4110 jknudson@polymetmining.com (NYSE MKT: PLM);(TSX: POM) 21

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