Mr. Ian Rozier, President and CEO of Eastern
Platinum Limited ("Eastplats") is pleased to report on financial
results for the quarter ended June 30, 2008.
Highlights for the quarter ended June
30, 2008 (�Q2 2008�)
Eastplats recorded net earnings of $12,705,000 ($0.02 per share) compared
to a net loss of $4,693,000 ($0.01 loss per share) in the second quarter of
2007 (�Q2 2007�). The Company�s results improved over Q2 2007 primarily due
to a significant increase in revenues and PGM production.
- Production at the Crocodile River Mine (�CRM�) increased by 21%
to 30,311 PGM ounces, from 25,111 PGM
ounces in Q2 2007.
- Revenues from CRM increased by 125% to $50,143,000 compared to $22,324,000 in Q2 2007.
- The average sales price per PGM ounce increased by 49% to $1,657 compared to $1,113 in Q2 2007.
- EBITDA increased by 538% to $29,085,000 from $5,033,000 in Q2 2007.
- Operating cash costs decreased by 1% to $696 per ounce, compared to $702 per ounce in Q2 2007.
- Recovery rates improved to 73%,
compared to 69% in Q2 2007, following planned improvements to the
concentrator circuit at the Crocodile River Mine.
- Grades improved to 4.03 grams per tonne (5PGE+Au) compared to 3.97 grams per tonne (5PGE+Au) in Q2 2007.
- Stoping units for the quarter increased by 25% to a record 44,277
square meters, compared to 35,315 square
meters in Q2 2007.
- Total underground development increased by 16% to 5,575 meters during the quarter (4,807 meters in Q2 2007) as the Company
continues to make substantial progress in the development of the ore
reserve at CRM.
- The average mining rate increased by 25% to 101,711 tonnes per
month during Q2 2008 from 81,425 tonnes per
month in Q2 2007.
- At
June 30, 2008, the Company had a cash position (including cash and cash
equivalents and short term investments) of $195,387,000 (December 31,
2007 � $189,856,000).
�We are pleased to report that
production, mining rates, and underground development rates have increased
compared to the first quarter of this year�, said Mr. Rozier. �Our primary
objectives are to increase our current rate of production at the Crocodile
River Mine while maintaining a steady cost structure, and to develop and
bring CRM�s Crocette Section and our Spitzkop project into production as
quickly as possible. With our current management team and financial
resources, we are confident that we can achieve these objectives.�
Financial
Information
For complete
details of financial results, please refer to the attached audited
consolidated financial statements and accompanying Management�s Discussion
and Analysis (�MD&A�) for the three and six months ended June 30, 2008.
These financial statements and MD&A, and the comparative financial
statements for the three and six months ended June 30, 2007 are all available
on SEDAR at www.sedar.com
and on the Company�s website www.eastplats.com.
About
the Company
Eastplats is
an expanding platinum group metals (�PGM�) producer engaged in the mining and
development of PGM�s with properties located in various provinces in South
Africa. All of the Company�s properties are situated on the western and
eastern limbs of the Bushveld Complex (�BC�), the geological environment that
supports over 75% of the world�s PGM supply.
The
Company�s primary operating asset is an 85% direct and indirect interest in
Barplats Investments Limited (�Barplats�), whose main assets are the PGM
producing Crocodile River Mine located on the western limb of the BC and the
non-producing Kennedy�s Vale Project located on the eastern limb of the BC.
The Company also has a 75.5% direct and indirect interest in Mareesburg
Platinum JV (�Mareesburg�) and a 93.4% direct and indirect interest in
Spitzkop PGM Project (�Spitzkop�) both located on the eastern limb of the BC.
The
Company�s strategy is to maximize shareholder returns from its Crocodile
River Mine and from its other mining properties under development. The
Company will continue to focus on traditional cost effective mining methods
that place a premium on a safe work environment. The Company takes full
advantage of the current PGM price environment as it has neither hedged nor
sold forward any of its PGM production.
The
Company�s shares are listed in Toronto on the TSX and on AIM (Alternative
Investment Market) of the London Stock Exchange and trade under the symbol
ELR. The Company shares are also listed on the Johannesburg Stock Exchange
and trade under the symbol EPS.
The
Company�s Nominated Advisor (�NOMAD�) in London is Canaccord Adams Limited
and the Company�s Sponsor in Johannesburg is PSG Capital (PTY) Limited.
Teleconference
call details
Eastern
Platinum Limited will host a telephone conference call on Thursday August 14,
2008 at 10:00 am Pacific (1:00 pm Eastern) to discuss these results. The
conference call may be accessed by dialing 1-800-319-4610 in Canada and the
United States, or 1-604-638-5340 internationally. The conference call will be
archived for later playback until Thursday August 21, 2008 and can be
accessed by dialing 1-604-638-9010 or 1-800-319-6413 and using the pass code
4219 followed by the number sign (#).
Total shares
issued and outstanding � 680,251,290
For
further information, please contact:
EASTERN
PLATINUM LIMITED Ian Rozier, President & C.E.O. +1-604-685-6851 (tel)
+1-604-685-6493 (fax)
info@eastplats.com
www.eastplats.com
No stock
exchange, securities commission or other regulatory authority has approved or
disapproved the information contained herein.
Cautionary
Statement on Forward-Looking Information
This press
release, which contains certain forward-looking statements, is intended to
provide readers with a reasonable basis for assessing the financial
performance of the Company. All statements, other than statements of
historical fact, are forward-looking statements. The words �believe�,
�expect�, �anticipate�, �contemplate�, �target�, �plan�, �intends�,
�continue�, �budget�, �estimate�, �may�, �will�, �schedule� and similar
expressions identify forward looking statements. Forward-looking statements
are necessarily based upon a number of estimates and assumptions that, while
considered reasonable by the Company, are inherently subject to significant
business, economic and competitive uncertainties and contingencies. Known and
unknown factors could cause actual results to differ materially from those
projected in the forward-looking statements. Such factors include, but are
not limited to, fluctuations in the currency markets such as Canadian dollar,
South African Rand and U.S. dollar, fluctuations in the prices of PGM and
other commodities, changes in government legislation, taxation, controls,
regulations and political or economic developments in Canada, the United
States, South Africa, or Barbados or other countries in which the Company
carries or may carry on business in the future, risks associated with mining
or development activities, the speculative nature of exploration and
development, including the risk of obtaining necessary licenses and permits,
and quantities or grades of reserves. Many of these uncertainties and
contingencies can affect the Company�s actual results and could cause actual
results to differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, the Company. Readers are
cautioned that forward-looking statements are not guarantees of future
performance. There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially from
those acknowledged in such statements. Specific reference is made to the
Company's most recent Annual Information Form on file with Canadian
provincial securities regulatory authorities for a discussion of some of the
factors underlying forward-looking statements.
The Company disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result of new
information, future events or otherwise, except to the extent required by
applicable laws.