Polymet Mining Corp. (PLM) stock seems to be incurring a setback today. Maybe it's just one of those days on the way up, as Polymet has been, since mid March 2008. It seems the company might hold the potential to get its stock price even higher.The company is still in the development stage, with no operating revenues, and has been incurring losses for the last year. Still, Polymet has over $20 million in cash, according to their recent SEC filing on Form 20-F .
Although the company currently has no operational activities it seems they have made the right preparation steps so far. Polymet obtained most of the equipment needed for production in 2005 with the acquisition of the Erie Plant. The company also owns Cleveland Cliff's asset base in Northern Minnesota. The property includes ore producing units and is generally rich in cobalt, gold and copper. In addition, the company has recently entered into a $25 million contract with URS Corp., for the construction of a new processing plant at one of Polymet's mines in Minnesota. Polymet still must receive environmental permission from the State of Minnesota in order to commence operations.
Polymet is in the late stages of securing these operating permits. The company stated that The Minnesota Department of Natural Resources expects to complete the Environmental Impact Statement for the company's NorthMet copper-nickel-precious metals project and its Erie Plant by the end of second quarter of 2008.
It appears some people believe the company has reached its limit though, as Polymet's stock has been recently sold-off by 4 mutual funds. It might be true for the moment, however potential growth over the long period should not be overlooked as the company appears to be about to enter exploitation stage.
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