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NEWS RELEASE : EASTERN PLATINUM REPORTS RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2012
EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR ISIN: CA 2768551038
Share Code AIM: ELR ISIN: CA 2768551038
Share Code JSE: EPS ISIN: CA 2768551038
August 14, 2012
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
NEWS RELEASE
EASTERN PLATINUM REPORTS RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2012
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") reports
financial results for the three months ended June 30, 2012.
Summary of results for the three months ended June 30, 2012 ("Q2 2012"):
Eastplats recorded a loss attributable to equity shareholders of the Company of
$85,674,000 ($0.09 loss per share) in the quarter ended June 30, 2012 ("Q2 2012")
compared to a loss of $7,951,000 ($0.01 loss per share) in the quarter ended June 30,
2011 ("Q2 2011").
The Company recorded an impairment charge of $88,278,000 on its Eastern Limb
properties in Q2 2012.
Adjusted EBITDA was negative $4,599,000 in Q2 2012 compared to negative
$4,280,000 in Q2 2011. The impairment charge was not included in the calculation of
adjusted EBITDA.
PGM ounces sold increased 29% to 26,412 ounces in Q2 2012 compared to 20,528
PGM ounces in Q2 2011.
The U.S. dollar average delivered price per PGM ounce decreased 19% to $902 in Q2
2012 compared to $1,113 in Q2 2011.
The Rand average delivered price per PGM ounce decreased 3% to R7,324 in Q2
2012 compared to R7,557 in Q2 2011.
Total Rand operating cash costs increased 11% to R235 million in Q2 2012 compared
to R211 million in Q2 2011.
Rand operating cash costs net of by-product credits decreased 9% to R7,390 per
ounce in Q2 2012 compared to R8,119 per ounce in Q2 2011. Rand operating cash
costs decreased 14% to R8,881 per ounce in Q2 2012 compared to R10,287 per ounce
in Q2 2011.
U.S. dollar operating cash costs net of by-product credits decreased 24% to $910 per
ounce in Q2 2012 compared to $1,196 per ounce achieved in Q2 2011. U.S. dollar
operating cash costs decreased 28% to $1,094 per ounce in Q2 2012 compared to
$1,515 per ounce in Q2 2011.
Head grade increased to 3.99 grams per tonne in Q2 2012 from 3.93 grams per tonne
in Q2 2011.
Average concentrator recovery increased to 79% in Q2 2012 compared to 76% in Q2
2011.
Development meters decreased by 18% to 2,922 meters and on-reef development
decreased by 21% to 1,653 meters compared to Q2 2011.
Stoping units increased 29% to 40,959 square meters in Q2 2012 compared to 31,828
square meters in Q2 2011.
Run-of-mine ore hoisted increased 27% to 257,250 tonnes in Q2 2012 compared to
203,166 tonnes in Q2 2011.
Run-of-mine ore processed increased by 25% to 252,883 tonnes in Q2 2012 compared
to 201,986 tonnes in Q2 2011.
The Companys Lost Time Injury Frequency Rate (LTIFR) was 1.17 in Q2 2012
compared to 0.63 in Q2 2011.
At June 30, 2012, the Company had a cash position (including cash, cash equivalents
and short term investments) of $167,871,000 (December 31, 2011 $250,801,000).
The Company is pleased to report that, following its announcement on May 30, 2012 of its
proposed plan for the suspension of development of the Mareesburg open-pit mine and
construction of the Kennedys Vale concentrator, the construction work has wound down
efficiently following a coordinated plan. The project will be an estimated 40% complete and
is forecast to be on full care and maintenance by the end of September 2012.
The Company is also pleased to report that its implementation of a comprehensive mine
development plan at the Crocodile River Mine is progressing well. As a result of the
temporary suspension of stoping at the Zandfontein section while continuing "on-reef"
mining operations at the Maroelabult section, the Company expects production for the full
year of 2012 to be approximately 75,000 PGM ounces and for the full year of 2013 to be
approximately 60,000 PGM ounces.
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 audited condensed consolidated
financial statements and accompanying Managements Discussion and Analysis ("MD&A")
for the three months ended June 30, 2012. These financial statements and MD&A, and the
comparative financial statements for the three months ended June 30, 2011 are all available
on SEDAR at www.sedar.com and on the Companys website www.eastplats.com.
Teleconference call details
Eastplats will host a telephone conference call on Tuesday, August 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 Tuesday, August 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 Securities 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. 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 Companys projects, the future development of the
Companys projects, the Companys 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 Companys 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, except per share amounts - unaudited)
Three months ended Six months ended
Note June 30, June 30, June 30, June 30,
2012 2011 2012 2011
Revenue $ 24,287 $ 26,876 $ 48,673 $ 62,578
Cost of operations
Production costs 28,886 31,156 55,686 60,446
Depletion and depreciation 6 3,810 5,259 8,133 10,378
Impairment 6 88,278 - 88,278 -
Loss on disposal of property,
plant and equipment 1,569 - 1,569 -
122,543 36,415 153,666 70,824
Mine operating loss (98,256) (9,539) (104,993) (8,246)
Expenses
General and administrative 6(d) 2,492 2,932 4,695 6,027
Share-based payments 7(e)(f) 23 46 2,340 8,269
2,515 2,978 7,035 14,296
Operating loss (100,771) (12,517) (112,028) (22,542)
Other income (expense)
Interest income 897 1,413 1,929 2,922
Finance costs 8 (4,805) (353) (5,099) (875)
Foreign exchange (loss) gain (45) 113 202 1,677
Loss before income taxes (104,724) (11,344) (114,996) (18,818)
Income tax recovery 15,312 471 12,475 593
Net loss for the period $ (89,412) $ (10,873) $ (102,521) $ (18,225)
Attributable to
Non-controlling interest 9 $ (3,738) $ (2,922) $ (7,939) $ (4,641)
Equity shareholders
of the Company (85,674) (7,951) (94,582) (13,584)
Net loss for the period $ (89,412) $ (10,873) $ (102,521) $ (18,225)
Loss per share
Basic 10 $ (0.09) $ (0.01) $ (0.10) $ (0.01)
Diluted 10 $ (0.09) $ (0.01) $ (0.10) $ (0.01)
Weighted average number of common shares outstanding in thousands
Basic 10 927,499 908,183 927,499 908,099
Diluted 10 927,499 908,183 927,499 908,099
Approved and authorized for issue by the Board on August 10, 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 Six months ended
June 30, June 30, June 30, June 30,
2012 2011 2012 2011
Net loss for the period $ (89,412) $ (10,873) $ (102,521) $ (18,225)
Other comprehensive (loss) income
Exchange differences on translating
foreign operations (40,064) 1,257 (6,888) (472)
Exchange differences on translating
non-controlling interest 576 (11) 291 (203)
Comprehensive loss for the period $ (128,900) $ (9,627) $ (109,118) $ (18,900)
Attributable to
Non-controlling interest (3,162) (2,933) (7,648) (4,844)
Equity shareholders of the Company (125,738) (6,694) (101,470) (14,056)
Comprehensive loss for the period $ (128,900) $ (9,627) $ (109,118) $ (18,900)
Eastern Platinum Limited
Condensed consolidated interim statements of financial position as at
June 30, 2012 and December 31, 2011
(Expressed in thousands of U.S. dollars - unaudited)
June 30, December 31,
Note 2012 2011
Assets
Current assets
Cash and cash equivalents 11 $ 57,397 $ 151,838
Short-term investments 110,474 98,963
Trade and other receivables 12 27,244 23,580
Inventories 13 6,556 7,989
201,671 282,370
Non-current assets
Property, plant and equipment 6 564,494 615,439
Refining contract 14 8,230 9,009
Other assets 15 8,595 7,995
$ 782,990 $ 914,813
Liabilities
Current liabilities
Trade and other payables 16 $ 29,945 $ 40,459
Finance leases - 1,675
29,945 42,134
Non-current liabilities
Provision for environmental rehabilitation 17 8,646 8,390
Deferred tax liabilities 20,424 33,520
59,015 84,044
Equity
Issued capital 7 1,230,358 1,230,358
Treasury shares 7(c) (334) (334)
Equity-settled employee benefits reserve 43,887 41,563
Foreign currency translation reserve (110,367) (103,479)
Deficit (428,438) (333,856)
Capital and reserves attributable to
equity shareholders of the Company 735,106 834,252
Non-controlling interest 9 (11,131) (3,483)
723,975 830,769
$ 782,990 $ 914,813
Eastern Platinum Limited
Condensed consolidated interim statements of cash flows
(Expressed in thousands of U.S. dollars - unaudited)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
Note 2012 2011 2012 2011
Operating activities
Loss before income taxes $ (104,724) $ (11,344) $ (114,996) $ (18,818)
Adjustments to net loss for
non-cash items
Depletion and depreciation 6 3,878 5,853 8,266 10,972
Impairment 6 88,278 - 88,278 -
Refining contract amortization 14 340 407 697 802
Share-based payments 7(e)(f) 23 46 2,340 8,269
Loss on disposal of property,
plant and equipment 1,569 - 1,569 -
Interest income (897) (1,413) (1,929) (2,922)
Finance costs 8 4,805 353 5,099 875
Foreign exchange loss (gain) 45 (113) (202) (1,677)
Net changes in non-cash
working capital items
Trade and other receivables 2,461 7,858 (3,192) 7,541
Inventories 1,959 792 1,322 754
Trade and other payables (2,284) (2,072) (739) 356
Cash (used in) generated
from operations (4,547) 367 (13,487) 6,152
Adjustments to net loss
for cash items
Interest income received 1,237 1,023 2,056 1,673
Finance costs paid (4,428) (2) (4,466) (195)
Net taxes (paid) received (173) 250 543 (33)
Net operating cash flows (7,911) 1,638 (15,354) 7,597
Investing activities
Acquisition of Lion's Head 5 - - (10,000) -
Net purchase of
short-term investments 22,445 3,576 (12,022) (1,495)
Purchase of other assets (378) (4,304) (712) (4,995)
Property, plant and
equipment expenditures (34,031) (19,193) (56,654) (33,516)
Disposal of property, plant
and equipment 554 - 554 -
Net investing cash flows (11,410) (19,921) (78,834) (40,006)
Financing activities
Common shares issued for
cash - exercise of
stock options - - - -
Payment of finance leases 127 (648) (1,553) (648)
Net financing cash flows 127 (648) (1,553) (648)
Effect of exchange rate
changes on cash and
cash equivalents (1,419) (756) 1,300 1,370
Decrease in cash and
cash equivalents (20,613) (19,687) (94,441) (31,687)
Cash and cash equivalents,
beginning of period 78,010 95,846 151,838 107,846
Cash and cash equivalents,
end of period $ 57,397 $ 76,159 $ 57,397 $ 76,159
Date: 14/08/2012 02:18:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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