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EASTERN PLATINUM LIMITED - Eastern Platinum reports results for the three months ended March 31, 2013 and approves advance notice policy

Release Date: 15/05/2013 14:10
Code(s): EPS     PDF:  
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Eastern Platinum reports results for the three months ended March 31, 2013 and approves advance notice policy

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

May 15, 2013
Trading Symbol: ELR (TSX & AIM) EPS (JSE)

NEWS RELEASE

EASTERN PLATINUM REPORTS RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND
APPROVES ADVANCE NOTICE POLICY

Mr. Ian Rozier, President and CEO of Eastern Platinum Limited (“Eastplats” or the
“Company) reports financial results for the three months ended March 31, 2013.


Summary of results for the three months ended March 31, 2013 (“Q1 2013”):

   Eastplats recorded a loss attributable to equity shareholders of the Company of
   $10,365,000 ($0.01 loss per share) in the quarter ended March 31, 2013 (“Q1 2013”)
   compared to a loss of $8,908,000 ($0.01 loss per share) in the quarter ended March 31,
   2012 (“Q1 2012”).

   Adjusted EBITDA was negative $4,611,000 in Q1 2013 compared to negative $2,414,000
   in Q1 2012.

   PGM ounces sold decreased 54% to 11,224 ounces in Q1 2013 compared to 24,474 PGM
   ounces in Q1 2012.

   The U.S. dollar average delivered price per PGM ounce decreased 1% to $960 in Q1
   2013 compared to $969 in Q1 2012.

   The Rand average delivered price per PGM ounce increased 14% to R8,595 in Q1 2013
   compared to R7,510 in Q1 2012.

   Total Rand operating cash costs decreased 32% to R141 million in Q1 2013 compared to
   R208 million in Q1 2012.

   Rand operating cash costs net of by-product credits increased 52% to R11,644 per ounce
   in Q1 2013 compared to R7,670 per ounce in Q1 2012. Rand operating cash costs
   increased 48% to R12,535 per ounce in Q1 2013 compared to R8,486 per ounce in Q1
   2012.

   U.S. dollar operating cash costs net of by-product credits increased 31% to $1,301 per
   ounce in Q1 2013 compared to $990 per ounce achieved in Q1 2012. U.S. dollar
   operating cash costs increased 28% to $1,400 per ounce in Q1 2013 compared to $1,095
   per ounce in Q1 2012.

   Head grade decreased 2% to 3.97 grams per tonne in Q1 2013 compared to 4.07 grams
   per tonne in Q1 2012.

   Average concentrator recovery decreased to 74% in Q1 2013 compared to 77% in Q1
   2012.

   Development meters decreased by 60% to 1,243 meters and on-reef development
   decreased by 72% to 484 meters compared to Q1 2012.

   Stoping units decreased 60% to 16,011 square meters in Q1 2013 compared to 39,857
   square meters in Q1 2012.

   Run-of-mine ore hoisted decreased 59% to 102,539 tonnes in Q1 2013 compared to
   247,538 tonnes in Q1 2012.

   Run-of-mine ore processed decreased by 57% to 101,981 tonnes in Q1 2013 compared to
   235,354 tonnes in Q1 2012.

   The Company’s Lost Time Injury Frequency Rate (LTIFR) was 2.91 in Q1 2013
   compared to 5.46 in Q1 2012.

   At March 31, 2013, the Company had a cash position (including cash, cash equivalents
   and short term investments) of $115,630,000 (December 31, 2012 – $130,925,000).

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 March 31, 2013. These financial statements and
MD&A, and the comparative financial statements for the three months ended March 31, 2012
are all available on SEDAR at www.sedar.com and on the Company’s website
www.eastplats.com.

The qualified person having reviewed the operating disclosures presented in this press release
is Mr. Brian Montpellier, P. Eng, V.P. Project Development.
Advance Notice Policy

Eastern Platinum Limited’s board of directors (the “Board of Directors”) has approved an
advance notice policy (the “Policy”) effective May 13, 2013. The purpose of the Policy is to
provide a clear framework for nominating directors of the Company which will facilitate an
orderly and efficient process for nomination and election of directors at annual or special general
meetings of shareholders. Among other things, the Policy fixes a deadline by which holders of
record of common shares of the Company must submit director nominations to the Company
prior to any annual or special general meeting of shareholders and sets forth the information that
a shareholder must include in the notice to the Company for the notice to be in proper written
form.

In the case of an annual general meeting of shareholders, notice to the Company must be made
not less than 40 nor more than 75 days prior to the date of the annual general meeting; provided,
however, that in the event that the annual general meeting is to be held on a date that is less than
50 days after the date on which the first public announcement of the date of the annual general
meeting was made, notice may be made not later than the close of business on the 10th day
following such public announcement.

In the case of a special general meeting of shareholders (which is not also an annual general
meeting), notice to the Company must be made no later than the close of business on the 15th day
following the day on which the first public announcement of the date of the special general
meeting was made. The Policy provides that the Board of Directors may, in its sole discretion,
waive any requirement of the Policy.

The Board of Directors intends to seek shareholder ratification of the Policy at Eastplats’ next
annual and special meeting, to be held on June 12, 2013.

The full text of the Policy is available on SEDAR at www.sedar.com.

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:
Andrew Chubb, Ross Allister
Canaccord Genuity Limited, London
Tel: +44 (0) 207 7523 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.
Please refer to the Company’s unaudited condensed consolidated interim financial statements and
notes thereto regarding the note references shown in the financial statements presented below.



Eastern Platinum Limited
Condensed consolidated interim statements of loss
(Expressed in thousands of U.S. dollars, except per share amounts - unaudited)

                                                                        Three months ended
                                                   Note                      March 31,
                                                                      2013                2012
                                                                                       (Note 3(c))
Revenue                                            20(c)          $     13,342      $        30,656

Cost of operations
 Production costs                                                      17,953               33,070
 Depletion and depreciation                          5                  2,222                4,323
 Gain on disposal of property, plant
   and equipment                                                         (270)                   -
                                                                       19,905               37,393
Mine operating loss                                                    (6,563)              (6,737)

Expenses
 General and administrative                        5(d)                  1,932               2,203
 Share-based payments                             6(d)(e)                3,090               2,317
                                                                         5,022               4,520

Operating loss                                                        (11,585)             (11,257)
Other income (expense)
 Interest income                                                           544               1,032
 Finance costs                                       7                    (262)               (294)
 Foreign exchange (loss) gain                                           (1,818)                247

Loss before income taxes                                              (13,121)             (10,272)
Income tax recovery (expense)                                              55               (2,837)
Net loss for the period                                           $   (13,066)       $     (13,109)

Attributable to
  Non-controlling interest                           8            $    (2,701)       $      (4,201)
  Equity shareholders of the Company                                  (10,365)              (8,908)
Net loss for the period                                           $   (13,066)       $     (13,109)

Loss per share
  Basic                                              9            $      (0.01)      $        (0.01)
  Diluted                                            9            $      (0.01)      $        (0.01)

Weighted average number of common shares outstanding in thousands
 Basic                                           9                927,805                  927,499
 Diluted                                         9                927,805                  927,499

Approved and authorized for issue by the Board on May 13, 2013.

"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
                                                                             March 31,
                                                                       2013            2012
Net loss for the period                                            $    (13,066)   $    (13,109)
Other comprehensive (loss) income
  Items that may subsequently be reclassified to loss or profit
    Exchange differences on translating foreign operations              (46,771)        33,176
    Exchange differences on translating non-controlling interest          1,296           (285)
Comprehensive (loss) income for the period                         $    (58,541)   $    19,782

Attributable to
  Non-controlling interest                                               (1,405)        (4,486)
  Equity shareholders of the Company                                    (57,136)        24,268
Comprehensive (loss) income for the period                         $    (58,541)   $    19,782
Eastern Platinum Limited
Condensed consolidated interim statements of financial position as at
March 31, 2013, December 31, 2012 and January 1, 2012
(Expressed in thousands of U.S. dollars - unaudited)

                                                            March 31,     December 31,          January 1,
                                                              2013            2012                2012
                                               Note                        (Note 4(a))         (Note 4(a))

Assets
Current assets
 Cash and cash equivalents                      10      $       66,432    $     70,699     $       151,838
 Short-term investments                                         49,198          60,226              98,963
 Trade and other receivables                    11              14,575          15,556              23,580
 Inventories                                    12               4,440           4,746               7,989
                                                               134,645         151,227             282,370

Non-current assets
 Property, plant and equipment                   5             536,148         577,031             615,439
 Refining contract                              13               6,424           7,270               9,009
 Other assets                                   14               8,906           9,062               7,995
                                                        $      686,123    $    744,590     $      914,813

Liabilities
Current liabilities
  Trade and other payables                      15      $       16,994    $     17,879     $        40,459
  Finance leases                                                     -               -               1,675
                                                                16,994          17,879              42,134

Non-current liabilities
 Provision for environmental rehabilitation     16              11,364          12,066               8,390
 Deferred tax liabilities                                       18,548          19,977              33,520
                                                                46,906          49,922              84,044

Equity
 Issued capital                                  6           1,230,358        1,230,358          1,230,358
 Treasury shares                              6(c)(e)             (204)            (204)              (334)
 Equity-settled employee benefits reserve      4(a)             12,081            8,991             34,391
 Foreign currency translation reserve                         (175,539)        (128,768)          (103,479)
 Deficit                                       4(a)           (410,380)        (400,015)          (326,684)
 Capital and reserves attributable to
   equity shareholders of the Company                          656,316         710,362             834,252
 Non-controlling interest                       8              (17,099)        (15,694)             (3,483)
                                                               639,217         694,668             830,769
                                                        $      686,123    $    744,590     $      914,813
Eastern Platinum Limited
Condensed consolidated interim statements of cash flows
(Expressed in thousands of U.S. dollars - unaudited)

                                                                        Three months ended
                                                                     March 31,        March 31,
                                                        Note           2013             2012

Operating activities
Loss before income taxes                                         $      (13,121)    $    (10,272)
Adjustments to net loss for non-cash items
  Depletion and depreciation                             5                2,285            4,388
  Gain on disposal of property, plant and
    equipment                                                              (270)               -
  Refining contract amortization                         13                 309              357
  Share-based payments                                 6(d)(e)            3,090            2,317
  Interest income                                                          (544)          (1,032)
  Finance costs                                          7                  262              294
  Foreign exchange loss (gain)                                            1,818             (247)
Net changes in non-cash working capital items
  Trade and other receivables                                               367           (5,653)
  Inventories                                                               (52)            (637)
  Trade and other payables                                                  (52)           1,545
Cash used in operations                                                  (5,908)          (8,940)
Adjustments to net loss for cash items
  Interest income received                                                  377              819
  Finance costs paid                                                        (44)             (38)
  Taxes received                                                            465              716
Net operating cash flows                                                 (5,110)          (7,443)

Investing activities
 Net maturity of short-term investments                                   9,855          (34,467)
 Purchase of other assets                                                  (537)            (334)
 Property, plant and equipment expenditures                              (5,004)         (22,623)
 Disposal of property, plant and equipment                                  525                -
Net investing cash flows                                                  4,839          (57,424)

Financing activities
  Acquisition of Lion's Head                                                   -         (10,000)
  Payment of finance leases                                                    -          (1,680)
Net financing cash flows                                                       -         (11,680)

Effect of exchange rate changes on cash
  and cash equivalents                                                   (3,996)           2,719

Decrease in cash and cash equivalents                                    (4,267)         (73,828)
Cash and cash equivalents, beginning of year                             70,699          151,838
Cash and cash equivalents, end of period                         $       66,432     $     78,010

Date: 15/05/2013 02:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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