Platinum Metals .(PLG) - 2024 Q3 - Quarterly Report

Interim Condensed Consolidated Financial Statements Interim Consolidated Statements of Financial Position As of May 31, 2024, total assets were $49.85M, liabilities $2.16M, and equity $47.69M, reflecting changes from August 2023 Consolidated Statement of Financial Position Highlights (in thousands of USD) | Account | May 31, 2024 | August 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Assets | | | | | Cash and cash equivalents | $4,765 | $6,989 | ($2,224) | | Mineral properties | $44,051 | $41,614 | $2,437 | | Total Assets | $49,850 | $50,021 | ($171) | | Liabilities | | | | | Accounts payable and accrued liabilities | $236 | $1,367 | ($1,131) | | Total Liabilities | $2,159 | $2,647 | ($488) | | Equity | | | | | Total shareholders' equity | $47,691 | $47,374 | $317 | Interim Consolidated Statements of Loss and Comprehensive Loss For the nine months ended May 31, 2024, net loss was $4.017M, with comprehensive loss at $3.795M, a significant improvement from prior year Statement of Loss Highlights (in thousands of USD, except per share data) | Metric | Nine months ended May 31, 2024 | Nine months ended May 31, 2023 | | :--- | :--- | :--- | | General and administrative | $2,567 | $2,922 | | Stock based compensation expense | $1,613 | $1,586 | | Net Loss for the period | $4,017 | $4,049 | | Comprehensive Loss for the period | $3,795 | $10,157 | | Basic and diluted loss per common share | $0.04 | $0.04 | Interim Consolidated Statements of Changes in Equity Total shareholders' equity increased to $47.69M by May 31, 2024, driven by a $2.5M share issuance and $1.1M stock compensation, offsetting a $4.017M net loss - Shareholders' equity increased from $25.73 million to $24.94 million for shareholders of the parent company, while non-controlling interest increased from $21.65 million to $22.75 million[6] - Key equity changes during the nine-month period included a $2.5 million share issuance, a $4.017 million net loss, and $1.1 million in stock-based compensation[6] Interim Consolidated Statements of Cash Flows Net cash decreased by $2.446 million for the nine months ended May 31, 2024, primarily due to investing activities, partially offset by financing activities Cash Flow Summary (in thousands of USD) | Activity | For the nine-month period ended May 31, 2024 | For the nine-month period ended May 31, 2023 | | :--- | :--- | :--- | | Net cash from Operating Activities | ($1,801) | ($3,087) | | Net cash from Financing Activities | $2,384 | $2,521 | | Net cash from Investing Activities | ($3,029) | ($3,172) | | Net decrease in cash | ($2,446) | ($3,738) | | Cash, end of period | $4,765 | $8,218 | Notes to the Interim Condensed Consolidated Financial Statements Detailed notes cover company operations, accounting policies, Waterberg Project focus, ownership, financing, legal proceedings, and related-party transactions under IFRS Note 1. Nature of Operations Platinum Group Metals Ltd. is a development-stage company focused on mineral properties in South Africa, primarily the Waterberg Project, held through subsidiaries and joint ventures - The company is a development-stage entity focused on mineral properties in South Africa containing platinum group metals[8] - The company holds its interests through several subsidiaries, including a 37.10% direct interest in Waterberg JV Resources (Pty) Ltd. and a 52.08% interest in Lion Battery Technologies Inc[10] Note 2. Basis of Presentation and Material Accounting Policies Interim consolidated financial statements are prepared under IFRS (IAS 34), consistent with annual policies, with the United States Dollar (USD) as the presentation currency - Financial statements are prepared in accordance with IFRS applicable to interim financial statements (IAS 34)[12] - The presentation currency is the United States Dollar (USD)[13] Note 3. Mineral Properties The Waterberg Project's capitalized costs increased to $44.05 million, with the company holding a 50.07% controlling interest, while the mining right faces ongoing legal challenges Waterberg Project Capitalized Costs (in thousands of USD) | Date | Amount | | :--- | :--- | | Balance August 31, 2023 | $41,614 | | Additions | $2,299 | | Foreign currency translation adjustment | $138 | | Balance May 31, 2024 | $44,051 | - As of May 31, 2024, the company held a controlling 50.07% interest in Waterberg JV Co. This interest is expected to increase to 50.16% after covering a cash call for partner Implats, whose interest will be diluted to 14.86%[23][28] - A new legal application was filed on March 7, 2024, seeking to set aside the 2021 grant of the Waterberg Mining Right. The company has filed a notice of opposition[32] Note 4. Lion Battery Technologies Inc. Lion Battery Technologies Inc., a joint venture with Amplats, researches PGM-based battery technology, funded with $4.612 million, holding five U.S. patents and engaging BIC for commercialization - Lion is a joint venture with Amplats to research PGM-based battery technology, with total funding of $4.612 million as of May 31, 2024[33][34] - Lion holds exclusive rights to five U.S. patents for battery technology and has engaged The Battery Innovation Center (BIC) to advance commercialization efforts[36][37] Note 5. Share Capital Fiscal 2024 share capital activities include a $2.5 million private placement with HCI, 3.8 million stock options outstanding, and recorded compensation costs for DSU and RSU plans - In September 2023, the company closed a $2.5 million private placement with Deepkloof Limited (a subsidiary of HCI), issuing 2,118,645 common shares at $1.18 each[39] Stock Option Activity | Status | Number of Options | Average Exercise Price (CAD) | | :--- | :--- | :--- | | Outstanding at Aug 31, 2023 | 4,793,837 | $3.17 | | Granted | 589,950 | $1.52 | | Cancelled / Expired | (1,584,169) | - | | Outstanding at May 31, 2024 | 3,799,618 | $2.19 | - During the period, the company recorded stock compensation costs of $0.79 million for options, $0.69 million for DSUs (including revaluation), and $0.315 million for RSUs[45][48][50] Note 6. Related Party Transactions The company engaged in transactions with related parties, including payments to directors and services from a common officer's company, with HCI holding a 26.3% interest and participating in a $2.5 million private placement - Major shareholder Hosken Consolidated Investments Limited (HCI) held a 26.3% interest in the company as of May 31, 2024[51] - HCI subscribed to a $2.5 million private placement in September 2023, reinforcing its position as a key shareholder[51] Note 7. Contingencies and Commitments Total commitments are approximately $0.7 million, mainly office lease obligations, while the legal action by Africa Wide concerning the Maseve Mine sale was fully resolved in the company's favor Commitment Schedule (in thousands of USD) | Type | < 1 Year | 1 - 3 Years | 4 - 5 Years | Total | | :--- | :--- | :--- | :--- | :--- | | Lease Obligations | $94 | $270 | $75 | $439 | | Environmental Bonds | $43 | $129 | $86 | $258 | | Totals | $137 | $399 | $161 | $697 | - The legal challenge by Africa Wide regarding the Maseve Mine sale was dismissed by the South Africa Supreme Court of Appeal. Africa Wide was ordered to pay costs and paid R2.99 million (approx. $159k) to the company in February 2024[54][55] Note 8. Supplementary Cash Flow Information The net change in non-cash working capital was a positive $246 thousand for the nine months ended May 31, 2024, driven by a decrease in receivables and prepaids Net Change in Non-Cash Working Capital (in thousands of USD) | Item | May 31, 2024 | May 31, 2023 | | :--- | :--- | :--- | | Amounts receivable, prepaid expenses and other assets | $344 | ($193) | | Accounts payable and other liabilities | ($98) | ($529) | | Total | $246 | ($722) | Note 9. Segmented Reporting The company operates in two segments, Canada and South Africa, with most assets ($45.46 million) in South Africa and most liabilities ($2.00 million) in Canada, and the net loss primarily from Canada Assets and Liabilities by Segment (in thousands of USD) - May 31, 2024 | Segment | Assets | Liabilities | | :--- | :--- | :--- | | Canada | $4,394 | $2,003 | | South Africa | $45,456 | $156 | | Total | $49,850 | $2,159 | Loss by Segment (in thousands of USD) - Nine months ended | Segment | May 31, 2024 | May 31, 2023 | | :--- | :--- | :--- | | Canada | $3,772 | $3,531 | | South Africa | $245 | $518 | | Total | $4,017 | $4,049 |