After reporting quarterly earnings earlier this week, Vancouver-based platinum and palladium focused mining company Platinum Group Metals Ltd.'s (PTM:TSX; PLG:AMEX) shares traded more than 35% higher today establishing a new 52-week high price of $2.869 per share.
The firm recently announced Q1/20 financial results for the period ending November 30, 2019 and provided a summary of recent events along with an updated outlook. For Q1/20, the company reported a net gain of $0.55 million compared to a net loss of $5.64 million in Q1/19, and posted a basic and diluted gain of $0.01 per share for Q1/20, compared to a loss of $0.19 per share in Q1/19. The company further advised that in December 2019 it closed a non-brokered private placement of shares resulting in gross proceeds to the company in the amount of $4.0 million.
The company advised in the report that at present it is mainly focused on advancing the palladium dominant Waterberg Project located on the North Limb of the Bushveld Complex in South Africa. The firm noted that a published independent Definitive Feasibility Study (DFS) last September indicated that "the Waterberg Project will be one of the largest and potentially lowest cash cost underground PGM mines globally."
According to the company, "the Waterberg DFS projects a fully mechanized, shallow, decline access palladium, platinum, gold and rhodium ("4E") mine at an annual production rate of 420,000 4E ounces and a 45 year mine life."
The company provided upwardly revised Waterberg deposit estimates and reported updated measured and indicated mineral resources of 242.4 million tonnes at 3.38g/t 4E for 26.4 million 4E ounces and proven and probable mineral reserves of 187.5 million tonnes at 3.24 g/t 4E for 19.5 million 4E ounces.
The firm pointed out that "the spot metal basket price per 4E ounce for the Waterberg Project has increased by an aggregate of approximately 25% since spot prices for the DFS were measured on September 4, 2019. The market outlook for strong palladium demand and the potential for continued palladium supply deficits indicates a bright future for Waterberg's dominant metal."
Platinum Group Metals Ltd. is headquartered in Vancouver, B.C. and is an exploration and development mining company primarily focused on the development of palladium and platinum. The company has mining operations in Canada and South Africa. Its business is mostly engaged on the ramp up of production at the Maseve Mine, and the exploration, engineering and operation of the Waterberg joint venture platinum deposit in South Africa.
Platinum Group Metals has a market capitalization of around $120.6 million with approximately 61.83 million shares outstanding. PLG shares opened unchanged today at $1.95 from yesterday. Since the open shares have risen by more than 35% setting a new 52-week high price today of $2.869. The stock has traded today between $1.95 to $2.869 per share and is currently trading at $2.66 (+$0.71, +34.87%).
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