Platinum Group Metals cuts 2017 production guidance

|About: Platinum Group Metals Ltd (PLG)|By:, SA News Editor

Platinum Group Metals (PLG -2.6%) is lower after reporting Q2 earnings and cutting its 2017 production guidance to 85K oz. of platinum, palladium, rhodium and gold from 100K oz.

PLG says it held $25M in cash as of Feb. 28, but would need to source $10M-$15M of additional funding through refinancing existing debt, issuing new debt or equity, or selling project or property interests in order to achieve positive cash flow and to maintain its working capital covenants in 2017 under existing loan facilities.

PLG says delays in underground development, stoping rates and planned tonnages would continue to hurt working capital requirements until sufficient mined stoped material was produced to allow mine operations to generate positive cash flow.

PLG's flagship Maseve mine in South Africa reported its best-ever production in March of 2,598 oz., but the result was below target and did not offset lower January and February results of 1,351 oz. and 1,193 oz., respectively.