TSX- and NYSE-listed Platinum Group Metals (PTM) continued its efforts to lower costs, but nonetheless incurred a net loss of $8.24-million for the financial year ended August 31 – a 37% improvement on the net loss of $13.1-million reported for the 2021 financial year.

The company is focussed on advancing the Waterberg project, located on the northern limb of the Bushveld Complex in South Africa, to a development and construction decision.

This financial year’s loss was lower primarily as a result of a reduced interest expense of $1.7-million against the $5.1-million of the prior financial year.

However, all of PTM’s debt of $27.8-million as at August 31, 2021, was paid off during the period under review, while general and administrative expenses were 15.7% lower year-on-year at $4.3-million.

Share-based compensation was also 31.2% lower year-on-year at $2.2-million.

The foreign exchange gain recognised in the period under review was $300 000 – 57.1% lower than in the 2021 financial year as a result of the dollar having increased in value relative to the Canadian dollar during the period.

At period’s end, finance income consisting of interest earned and property rental fees amounted to $200 000, up from the $100 000 of the period prior.

The miner’s loss a share amounted to $0.09, down from the loss of $0.18 in the prior financial year.

Accounts receivable, comprising mainly value-added taxes at period’s end, totalled $400 000, up from the $300 000 of the 2021 fiscal year, while accounts payable, mostly comprising Waterberg project engineering and maintenance costs, and other liabilities, was down 56% to $1.1-million.

Meanwhile, in June, PTM completed an at-the-market equity programme, selling 10.43-million common shares at an average price of $2.94 apiece, totalling proceeds of $30.6-million.

Total expenditures before partner reimbursements on the Waterberg project, which is a joint venture (JV) between PTM, Impala Platinum, Mnombo Wethu Consultants, Japan Organisation for Metals and Energy Security and Hanwa Company, was down 18.9% year-on-year at about $3-million.

At period’s end, $40.4-million in accumulated net costs was capitalised to the Waterberg project, thereby bringing total project expenditure since inception to about $80.9-million.

Meanwhile, the Waterberg JV on October 18 approved in principle the pre-construction work programme of about $21-million over a 23-month period to end August 31, 2024.

The work programme will focus on project infrastructure including initial road access, water supply, essential site facilities, a first phase accommodation lodge, a site construction power supply from power utility Eskom and advancement of the Waterberg social and labour plan.

The Waterberg project is planned to be a fully mechanised, shallow, decline-access palladium, platinum, gold and rhodium mine.

Going forward, an update to the 2019 Waterberg definitive feasibility study is also planned, including a review of cut-off grades, mining methods, infrastructure plans, scheduling, concentrate offtake, dry stack tailings, costing and other potential revisions to the project's financial model.

From the work programme, the initial budget of about $2.5-million was approved for expenditure by March 31, 2023. This work has now started.

The initial budget includes a 32-hole infill drilling programme targeting near-surface, modelled inferred mineral resource blocks that have good potential for conversion to higher confidence levels, thereby enabling them to be added to early mine plans, potentially reducing early capital expenditure and the period to first mining.