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EPS - Eastern Platinum Limited - Eastern Platinum reports results for the

Release Date: 14/05/2012 15:54
Code(s): EPS
Wrap Text

EPS - Eastern Platinum Limited - Eastern Platinum reports results for the three months ended March 31, 2012 EASTERN PLATINUM LIMITED (Incorporated in Canada) (Canadian Registration number BC0722783) (South African Registration number 2007/006318/10) Share Code TSX: ELR ISIN: CA2768551038 Share Code AIM: ELR ISIN: CA2768551038 Share Code JSE: EPS ISIN: CA2768551038 May 14, 2012 Trading Symbol: ELR (TSX & AIM) EPS (JSE) NEWS RELEASE EASTERN PLATINUM REPORTS RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2012 Mr Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") reports financial results for the three months ended March 31, 2012. Summary of results for the three months ended March 31, 2012 ("Q1 2012"): * Eastplats recorded a loss attributable to equity shareholders of the Company of $8,908,000 ($0.01 loss per share) in the quarter ended March 31, 2012 ("Q1 2012") compared to a loss of $5,633,000 ($0.01 loss per share) in the quarter ended March 31, 2011 ("Q1 2011"). * EBITDA decreased to negative $2,414,000 in Q1 2012 compared to $6,412,000 in Q1 2011. * PGM ounces sold decreased 4% to 24,474 ounces in Q1 2012 compared to 25,387 PGM ounces in Q1 2011. * The U.S. dollar average delivered price per PGM ounce decreased 15% to $969 in Q1 2012 compared to $1,136 in Q1 2011. * The Rand average delivered price per PGM ounce decreased 6% to R7,510 in Q1 2012 compared to R7,963 in Q1 2011. * Total Rand operating cash costs increased 1% to R208 million in Q1 2012 compared to R205 million in Q1 2011. * Rand operating cash costs net of by-product credits increased 24% to R7,670 per ounce in Q1 2012 compared to R6,167 per ounce in Q1 2011. Rand operating cash costs increased 5% to R8,486 per ounce in Q1 2012 compared to R8,090 per ounce in Q1 2011. * U.S. dollar operating cash costs net of by-product credits increased 13% to $990 per ounce in Q1 2012 compared to $880 per ounce achieved in Q1 2011. U.S. dollar operating cash costs decreased 5% to $1,095 per ounce in Q1 2012 compared to $1,154 per ounce in Q1 2011. * Head grade increased to 4.07 grams per tonne in Q1 2012 from 3.93 grams per tonne in Q1 2011. * Average concentrator recovery decreased to 77% in Q1 2012 compared to 79% in Q1 2011. * Development meters decreased by 26% to 3,117 meters and on-reef development decreased by 30% to 1,704 meters compared to Q1 2011. * Stoping units decreased 11% to 39,857 square meters in Q1 2012 compared to 44,674 square meters in Q1 2011. * Run-of-mine ore hoisted remained consistent at 247,538 tonnes in Q1 2012 compared to 247,369 tonnes in Q1 2011. * Run-of-mine ore processed decreased by 4% to 235,354 tonnes in Q1 2012 compared to 245,500 tonnes in Q1 2011. * The Company`s Lost Time Injury Frequency Rate (LTIFR) was 5.46 in Q1 2012 compared to 1.54 in Q1 2011. * At March 31, 2012, the Company had a cash position (including cash, cash equivalents and short term investments) of $213,492,000 (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 condensed consolidated financial statements and accompanying Management`s Discussion and Analysis ("MD&A") for the three months ended March 31, 2012, set out below. Teleconference call details Eastplats will host a telephone conference call on Monday, May 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 Monday, May 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 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 NOMAD: Rob Collins Canaccord Genuity Limited, London Tel: +44 (0) 207 523 8000 JSE SPONSOR: Johan Fourie PSG Capital (Pty) Limited Email: johanf@psgcapital.com Tel: +27 21 887 9602 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. (Unaudited Financial Statements) Eastern Platinum Limited Condensed consolidated interim income statements (Expressed in thousands of U.S. dollars, except per share amounts - unaudited) Three months ended Note March 31, March 31, 2012 2011 Revenue $ 24,386 $ 35,702 Cost of operations Production costs 26,800 29,290 Depletion and depreciation 6 4,323 5,119 31,123 34,409
Mine operating (loss) earnings (6,737) 1,293 Expenses General and administrative 6(d) 2,203 3,095 Share-based payments 7(e)(f) 2,317 8,223 4,520 11,318 Operating loss (11,257) (10,025) Other income (expense) Interest income 1,032 1,509 Finance costs 8 (294) (522) Foreign exchange gain 247 1,564 Loss before income taxes (10,272) (7,474) Income tax (expense) recovery (2,837) 122 Net loss for the period $ (13,109) $ (7,352) Attributable to Non-controlling interest 9 $ (4,201) $ (1,719) Equity shareholders of the Company (8,908) (5,633) Net loss for the period $ (13,109) $ (7,352) Loss per share Basic 10 $ (0.01) $ (0.01) Diluted 10 $ (0.01) $ (0.01) Weighted average number of common shares outstanding in thousands Basic 10 927,499 908,015 Diluted 10 927,499 908,015 Approved and authorised for issue by the Board on May 10, 2012. "David Cohen" "Robert Gayton" David Cohen, Director Robert Gayton, Director Condensed consolidated interim statements of comprehensive income (loss) (Expressed in thousands of U.S. dollars - unaudited) Three months ended March 31, March 31, 2012 20 11
Net loss for the period $ (13,109) $ (7,352) Other comprehensive income Exchange differences on translating foreign operations 33,176 (1,729) Exchange differences on translating non-controlling interest (285) (192) Comprehensive income (loss) for the period $ 19,782 $ (9,273) Attributable to Non-controlling interest (4,486) (1,911) Equity shareholders of the Company 24,268 (7,362) Comprehensive income (loss) for the period $ 19,782 $ (9,273) Condensed consolidated interim statements of financial position as at March 31, 2012 and December 31, 2011 (Expressed in thousands of U.S. dollars - unaudited) March 31, December 31, Note 2012 2011
Assets Current assets Cash and cash equivalents 11 $ 78,010 $ 151,838 Short-term investments 135,482 98,963 Trade and other receivables 12 32,949 23,580 Inventories 13 9,081 7,989 255,522 282,370 Non-current assets Property, plant and equipment 6 661,159 615,439 Refining contract 14 9,152 9,009 Other assets 15 8,781 7,995 $ 934,614 $ 914,813
Liabilities Current liabilities Trade and other payables 16 $ 34,553 $ 40,459 Finance leases - 1,675 34,553 42,134 Non-current liabilities Provision for environmental rehabilitation 17 9,047 8,390 Deferred tax liabilities 38,154 33,520 81,754 84,044 Equity Issued capital 7 1,230,358 1,230,358 Treasury shares 7(f) (334) (334) Equity-settled employee benefits reserve 43,872 41,563 Foreign currency translation reserve (70,303) (103,479) Deficit (342,764) (333,856) Capital and reserves attributable to equity shareholders of the Company 860,829 834,252 Non-controlling interest 9 (7,969) (3,483) 852,860 830,769 $ 934,614 $ 914,813 Condensed consolidated interim statements of cash flows (Expressed in thousands of U.S. dollars - unaudited) Three months ended March 31, March 31, Note 2012 2011 Operating activities Loss before income taxes $ (10,272) $ (7,474) Adjustments to net loss for non-cash items Depletion and depreciation 6 4,388 5,119 Refining contract amortisation 14 357 395 Share-based payments 7(e)(f) 2,317 8,223 Interest income (1,032) (1,509) Finance costs 8 294 522 Foreign exchange gain (247) (1,564) Net changes in non-cash working capital items Trade and other receivables (5,653) (317) Inventories (637) (38) Trade and other payables 1,545 2,428 Cash (used in) generated from operations (8,940) 5,785 Adjustments to net loss for cash items Interest income received 819 650 Finance costs paid (38) (193) Net taxes received (paid) 716 (283) Net operating cash flows (7,443) 5,959 Investing activities Acquisition of Lion`s Head 5 (10,000) - Net purchase of short-term investments (34,467) (5,071) Purchase of other assets (334) (691) Property, plant and equipment expenditures (22,623) (14,323) Net investing cash flows (67,424) (20,085) Financing activities Payment of finance leases (1,680) - Net financing cash flows (1,680) - Effect of exchange rate changes on cash and cash equivalents 2,719 2,126 Decrease in cash and cash equivalents (73,828) (12,000) Cash and cash equivalents, beginning of period 151,838 107,846 Cash and cash equivalents, end of period $ 78,010 $ 95,846 Date: 14/05/2012 15:54:04 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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