|
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2012) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") (News - Market indicators)(AIM:ELR)(JSE:EPS) reports financial results for the three months ended September 30, 2012.
Summary of results for the three months ended September 30, 2012:
- Eastplats recorded a loss attributable to equity shareholders of the Company of $5,029,000 ($0.01 loss per share) in the quarter ended September 30, 2012 ("Q3 2012") compared to earnings of $1,364,000 ($0.00 per share) in the quarter ended September 30, 2011 ("Q3 2011").
- Adjusted EBITDA was negative $2,873,000 in Q3 2012 compared to $2,912,000 in Q3 2011.
- PGM ounces sold decreased 21% to 21,273 ounces in Q3 2012 compared to 26,955 PGM ounces in Q3 2011.
- The U.S. dollar average delivered price per PGM ounce decreased 18% to $896 in Q3 2012 compared to $1,088 in Q3 2011.
- The Rand average delivered price per PGM ounce decreased 5% to R7,401 in Q3 2012 compared to R7,768 in Q3 2011.
- Total Rand operating cash costs decreased 8% to R188 million in Q3 2012 compared to R204 million in Q3 2011.
- Rand operating cash costs net of by-product credits increased 34% to R8,197 per ounce in Q3 2012 compared to R6,097 per ounce in Q3 2011. Rand operating cash costs increased 17% to R8,830 per ounce in Q3 2012 compared to R7,561 per ounce in Q3 2011.
- U.S. dollar operating cash costs net of by-product credits increased 16% to $992 per ounce in Q3 2012 compared to $854 per ounce achieved in Q3 2011. U.S. dollar operating cash costs increased 1% to $1,069 per ounce in Q3 2012 compared to $1,059 per ounce in Q3 2011.
- Head grade in Q3 2012 was 4.08 grams per tonne, consistent with the head grade in Q3 2011.
- Average concentrator recovery decreased to 76% in Q3 2012 compared to 78% in Q3 2011.
- Development meters decreased by 48% to 2,066 meters and on-reef development decreased by 57% to 966 meters compared to Q3 2011.
- Stoping units decreased 29% to 28,943 square meters in Q3 2012 compared to 40,594 square meters in Q3 2011.
- Run-of-mine ore hoisted decreased 22% to 206,176 tonnes in Q3 2012 compared to 265,889 tonnes in Q3 2011.
- Run-of-mine ore processed decreased by 22% to 203,279 tonnes in Q3 2012 compared to 261,280 tonnes in Q3 2011.
- The Company's Lost Time Injury Frequency Rate (LTIFR) was 0.63 in Q3 2012 compared to 1.66 in Q3 2011.
- At September 30, 2012, the Company had a cash position (including cash, cash equivalents and short term investments) of $135,594,000 (December 31, 2011 - $250,801,000).
The qualified person having reviewed the operating disclosures presented in this press release is Mr. Brian Montpellier, P. Eng, V.P. Project Development.
Financial Information
For complete details of financial results, please refer to the unaudited condensed consolidated interim financial statements and accompanying Management's Discussion and Analysis ("MD&A") for the three months ended September 30, 2012. These financial statements and MD&A, and the comparative financial statements for the three months ended September 30, 2011 are all available on SEDAR at www.sedar.com and on the Company's website www.eastplats.com.
Teleconference call details
Eastplats will host a telephone conference call on Wednesday, November 14, 2012 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 Wednesday, November 21, 2012 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 - 928,187,807
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. These forward-looking statements pertain to assumptions regarding the price of PGMs, fluctuations in currency markets (specifically the Rand and the U.S. dollar), the future funding of the Company's projects, the future development of the Company's projects, the Company's plans for its properties, the anticipated timing for the awarding of tenders, and the accounting policies issued but not yet effective for the Company. 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, the risk of fluctuations in the assumed exchange rates of currencies that directly impact the Company, such as Canadian dollar, South African Rand and U.S. dollar, the risk of fluctuations in the assumed prices of PGM and other commodities, the risk of 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 assumed 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.
| Eastern Platinum Limited |
| Condensed consolidated interim statements of loss |
| (Expressed in thousands of U.S. dollars - unaudited) |
| |
| |
|
|
Three months ended |
|
|
Nine months ended |
|
| |
Note |
|
September 30, |
|
|
September 30, |
|
| |
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| Revenue |
|
$ |
19,861 |
|
$ |
31,453 |
|
$ |
68,534 |
|
$ |
94,031 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Production costs |
|
|
22,734 |
|
|
28,541 |
|
|
78,420 |
|
|
88,987 |
|
| |
Depletion and depreciation |
6 |
|
3,192 |
|
|
5,502 |
|
|
11,325 |
|
|
15,880 |
|
| |
Impairment |
6 |
|
- |
|
|
- |
|
|
88,278 |
|
|
- |
|
|
(Gain) loss on disposal of property, plant and equipment |
|
|
(167 |
) |
|
- |
|
|
1,402 |
|
|
- |
|
| |
|
|
25,759 |
|
|
34,043 |
|
|
179,425 |
|
|
104,867 |
|
| Mine operating loss |
|
|
(5,898 |
) |
|
(2,590 |
) |
|
(110,891 |
) |
|
(10,836 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
General and administrative |
6(d) |
|
1,987 |
|
|
2,546 |
|
|
6,682 |
|
|
8,573 |
|
| |
Share-based payments |
7(e)(f) |
|
(31 |
) |
|
22 |
|
|
2,309 |
|
|
8,291 |
|
| |
|
|
1,956 |
|
|
2,568 |
|
|
8,991 |
|
|
16,864 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating loss |
|
|
(7,854 |
) |
|
(5,158 |
) |
|
(119,882 |
) |
|
(27,700 |
) |
| Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest income |
|
|
791 |
|
|
1,376 |
|
|
2,720 |
|
|
4,298 |
|
| |
Finance costs |
8 |
|
(281 |
) |
|
(322 |
) |
|
(5,380 |
) |
|
(1,197 |
) |
| |
Foreign exchange (loss) gain |
|
|
(138 |
) |
|
3,108 |
|
|
64 |
|
|
4,785 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss before income taxes |
|
|
(7,482 |
) |
|
(996 |
) |
|
(122,478 |
) |
|
(19,814 |
) |
| Income tax (expense) recovery |
|
|
(98 |
) |
|
447 |
|
|
12,377 |
|
|
1,040 |
|
| Net loss for the period |
|
$ |
(7,580 |
) |
$ |
(549 |
) |
$ |
(110,101 |
) |
$ |
(18,774 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Non-controlling interest |
9 |
$ |
(2,551 |
) |
$ |
(1,913 |
) |
$ |
(10,490 |
) |
$ |
(6,554 |
) |
| |
Equity shareholders of the Company |
|
|
(5,029 |
) |
|
1,364 |
|
|
(99,611 |
) |
|
(12,220 |
) |
| Net loss for the period |
|
$ |
(7,580 |
) |
$ |
(549 |
) |
$ |
(110,101 |
) |
$ |
(18,774 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Basic |
10 |
$ |
(0.01 |
) |
$ |
0.00 |
|
$ |
(0.11 |
) |
$ |
(0.01 |
) |
| |
Diluted |
10 |
$ |
(0.01 |
) |
$ |
0.00 |
|
$ |
(0.11 |
) |
$ |
(0.01 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average number of common shares outstanding in thousands |
|
|
|
|
|
|
|
| |
Basic |
10 |
|
927,499 |
|
|
908,188 |
|
|
927,499 |
|
|
908,129 |
|
| |
Diluted |
10 |
|
927,499 |
|
|
916,706 |
|
|
927,499 |
|
|
908,129 |
|
| |
| Approved and authorized for issue by the Board on November 13, 2012. |
| |
|
|
| "David Cohen" |
|
"Robert Gayton" |
| David Cohen, Director |
|
Robert Gayton, Director |
| |
| |
| Eastern Platinum Limited |
| Condensed consolidated interim statements of comprehensive loss |
| (Expressed in thousands of U.S. dollars - unaudited) |
| |
| |
|
Three months ended |
|
|
Nine months ended |
|
| |
|
September 30, |
|
|
September 30, |
|
| |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| Net loss for the period |
$ |
(7,580 |
) |
$ |
(549 |
) |
$ |
(110,101 |
) |
$ |
(18,774 |
) |
| Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Exchange differences on translating foreign operations |
|
(2,962 |
) |
|
(133,229 |
) |
|
(9,850 |
) |
|
(133,701 |
) |
| |
Exchange differences on translating non-controlling interest |
|
218 |
|
|
(82 |
) |
|
509 |
|
|
(285 |
) |
| Comprehensive loss for the period |
$ |
(10,324 |
) |
$ |
(133,860 |
) |
$ |
(119,442 |
) |
$ |
(152,760 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Non-controlling interest |
|
(2,333 |
) |
|
(1,995 |
) |
|
(9,981 |
) |
|
(6,839 |
) |
| |
Equity shareholders of the Company |
|
(7,991 |
) |
|
(131,865 |
) |
|
(109,461 |
) |
|
(145,921 |
) |
| Comprehensive loss for the period |
$ |
(10,324 |
) |
$ |
(133,860 |
) |
$ |
(119,442 |
) |
$ |
(152,760 |
) |
| |
| |
| Eastern Platinum Limited |
| Condensed consolidated interim statements of financial position as at |
| September 30, 2012 and December 31, 2011 |
| (Expressed in thousands of U.S. dollars - unaudited) |
| |
| |
|
|
September 30, |
|
|
December 31, |
|
| |
Note |
|
2012 |
|
|
2011 |
|
| |
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
|
| |
Cash and cash equivalents |
11 |
$ |
68,662 |
|
$ |
151,838 |
|
| |
Short-term investments |
|
|
66,932 |
|
|
98,963 |
|
| |
Trade and other receivables |
12 |
|
30,322 |
|
|
23,580 |
|
| |
Inventories |
13 |
|
6,862 |
|
|
7,989 |
|
| |
|
|
172,778 |
|
|
282,370 |
|
| |
|
|
|
|
|
|
|
| Non-current assets |
|
|
|
|
|
|
|
| |
Property, plant and equipment |
6 |
|
576,853 |
|
|
615,439 |
|
| |
Refining contract |
14 |
|
7,778 |
|
|
9,009 |
|
| |
Other assets |
15 |
|
8,905 |
|
|
7,995 |
|
| |
|
$ |
766,314 |
|
$ |
914,813 |
|
| |
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
| |
Trade and other payables |
16 |
$ |
23,656 |
|
$ |
40,459 |
|
| |
Finance leases |
|
|
- |
|
|
1,675 |
|
| |
|
|
23,656 |
|
|
42,134 |
|
| |
|
|
|
|
|
|
|
| Non-current liabilities |
|
|
|
|
|
|
|
| |
Provision for environmental rehabilitation |
17 |
|
8,695 |
|
|
8,390 |
|
| |
Deferred tax liabilities |
|
|
20,331 |
|
|
33,520 |
|
| |
|
|
52,682 |
|
|
84,044 |
|
| |
|
|
|
|
|
|
|
| Equity |
|
|
|
|
|
|
|
| |
Issued capital |
7 |
|
1,230,358 |
|
|
1,230,358 |
|
| |
Treasury shares |
7(c) |
|
(334 |
) |
|
(334 |
) |
| |
Equity-settled employee benefits reserve |
|
|
43,868 |
|
|
41,563 |
|
| |
Foreign currency translation reserve |
|
|
(113,329 |
) |
|
(103,479 |
) |
| |
Deficit |
|
|
(433,467 |
) |
|
(333,856 |
) |
| |
Capital and reserves attributable to equity shareholders of the Company |
|
|
727,096 |
|
|
834,252 |
|
| |
Non-controlling interest |
9 |
|
(13,464 |
) |
|
(3,483 |
) |
| |
|
|
713,632 |
|
|
830,769 |
|
| |
|
$ |
766,314 |
|
$ |
914,813 |
|
| |
| |
| Eastern Platinum Limited |
| Condensed consolidated interim statements of cash flows |
| (Expressed in thousands of U.S. dollars - unaudited) |
| |
| |
|
|
Three months ended |
|
|
Nine months ended |
|
| |
|
|
September 30, |
|
|
September 30, |
|
| |
Note |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| Operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss before income taxes |
|
$ |
(7,482 |
) |
$ |
(996 |
) |
$ |
(122,478 |
) |
$ |
(19,814 |
) |
| Adjustments to net loss for |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
non-cash items |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Depletion and depreciation |
6 |
|
3,259 |
|
|
5,568 |
|
|
11,525 |
|
|
16,540 |
|
| |
Impairment |
6 |
|
- |
|
|
- |
|
|
88,278 |
|
|
- |
|
| |
Refining contract amortization |
14 |
|
335 |
|
|
387 |
|
|
1,032 |
|
|
1,189 |
|
| |
Share-based payments |
7(e)(f) |
|
(31 |
) |
|
22 |
|
|
2,309 |
|
|
8,291 |
|
| |
(Gain) loss on disposal of property, plant and equipment |
|
|
(167 |
) |
|
- |
|
|
1,402 |
|
|
|
|
| |
Interest income |
|
|
(791 |
) |
|
(1,376 |
) |
|
(2,720 |
) |
|
(4,298 |
) |
| |
Finance costs |
8 |
|
281 |
|
|
322 |
|
|
5,380 |
|
|
1,197 |
|
| |
Foreign exchange loss (gain) |
|
|
138 |
|
|
(3,108 |
) |
|
(64 |
) |
|
(4,785 |
) |
| Net changes in non-cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
working capital items |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Trade and other receivables |
|
|
(3,039 |
) |
|
(7,736 |
) |
|
(6,231 |
) |
|
(195 |
) |
| |
Inventories |
|
|
(402 |
) |
|
(1,408 |
) |
|
920 |
|
|
(654 |
) |
| |
Trade and other payables |
|
|
(5,936 |
) |
|
(1,994 |
) |
|
(6,675 |
) |
|
(1,638 |
) |
| Cash used in operations |
|
|
(13,835 |
) |
|
(10,319 |
) |
|
(27,322 |
) |
|
(4,167 |
) |
| Adjustments to net loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
for cash items |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest income received |
|
|
979 |
|
|
573 |
|
|
3,035 |
|
|
2,246 |
|
| |
Finance costs paid |
|
|
(165 |
) |
|
(3 |
) |
|
(4,631 |
) |
|
(198 |
) |
| |
Net taxes received |
|
|
- |
|
|
90 |
|
|
543 |
|
|
57 |
|
| Net operating cash flows |
|
|
(13,021 |
) |
|
(9,659 |
) |
|
(28,375 |
) |
|
(2,062 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisition of Lion's Head |
5 |
|
- |
|
|
- |
|
|
(10,000 |
) |
|
- |
|
| Net receipt of short-term investments |
|
|
46,919 |
|
|
14,752 |
|
|
34,897 |
|
|
13,257 |
|
| Purchase of other assets |
|
|
(435 |
) |
|
(175 |
) |
|
(1,147 |
) |
|
(5,170 |
) |
| Property, plant and equipment expenditures |
|
|
(23,886 |
) |
|
(27,765 |
) |
|
(80,540 |
) |
|
(61,281 |
) |
| Disposal of property, plant and equipment |
|
|
218 |
|
|
- |
|
|
772 |
|
|
- |
|
| Net investing cash flows |
|
|
22,816 |
|
|
(13,188 |
) |
|
(56,018 |
) |
|
(53,194 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares issued for cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
- exercise of stock options |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
| Payment of finance leases |
|
|
- |
|
|
- |
|
|
(1,553 |
) |
|
(648 |
) |
| Net financing cash flows |
|
|
- |
|
|
- |
|
|
(1,553 |
) |
|
(648 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effect of exchange rate changes |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
on cash and cash equivalents |
|
|
1,470 |
|
|
(3,876 |
) |
|
2,770 |
|
|
(2,506 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase (decrease) in cash and cash equivalents |
|
|
11,265 |
|
|
(26,723 |
) |
|
(83,176 |
) |
|
(58,410 |
) |
| Cash and cash equivalents, beginning of period |
|
|
57,397 |
|
|
76,159 |
|
|
151,838 |
|
|
107,846 |
|
| Cash and cash equivalents, end of period |
|
$ |
68,662 |
|
$ |
49,436 |
|
$ |
68,662 |
|
$ |
49,436 |
| No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Eastern Platinum Limited
Ian Rozier
President & C.E.O.
+1-604-685-6851
+1-604-685-6493 (FAX)
info@eastplats.com
www.eastplats.com
or
NOMAD:
Canaccord Genuity Securities Limited, London
Rob Collins
+44 (0) 207 523 8000
or
JSE SPONSOR:
PSG Capital (Pty) Limited
Johan Fourie
+27 21 887 9602
Email: johanf@psgcapital.com
| |
