Wrap Text
News release : Eastern Platinum reports results
for the three months ended September 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
November 14, 2012
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
NEWS RELEASE
EASTERN PLATINUM REPORTS RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited (“Eastplats”) 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
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 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 11,265 (26,723) (83,176) (58,410)
cash equivalents
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
Date: 14/11/2012 03:23:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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