Wrap Text
News Release: Eastern Platinum Reports Results for the three and nine months ended 30 September 2013
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 15, 2013
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
NEWS RELEASE
EASTERN PLATINUM REPORTS RESULTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013
Eastern Platinum Limited (“Eastplats” or the “Company) reports financial results for the
three and nine months ended September 30, 2013.
On April 19, 2013, the Company announced its decision to suspend funding for CRM due to
the continuing stagnant outlook in the global economic environment, the sustained weakness
in PGM pricing and the current operating environment in South Africa. On April 22, 2013
Barplats Mines Limited issued notices to employees in terms of Section 189 of the Labour
Relations Act 66 of 1995 with respect to a care and maintenance and restructuring proposal
for CRM. The consultation process with the unions and other representatives ended upon the
expiry of the 60-day period on June 21, 2013.
Production at CRM scaled down with effect from June 22, 2013 and ceased by the end of
July 2013. Production will not resume until it is clear that there can be sustainable economic
production from CRM. The Company will continue to meet all its commitments with respect
to its environmental management programs and the relevant aspects of its Social and Labour
Plan.
Due to the suspension of production, the Company believes that it is not meaningful to
compare the operations of the three months ended September 30, 2013 against the operations
of the three months ended September 30, 2012, and as a result going forward, the Company
will no longer be providing quarterly press releases on operations until such time as
operations resume.
The key financial highlights for the three and nine months ended September 30, 2013 are
provided below:
- At September 30, 2013, the Company had a cash position (including cash, cash
equivalents and short term investments) of $98,207,000 (December 31, 2012 –
$130,925,000).
- Eastplats recorded a loss attributable to equity shareholders of the Company of
$4,617,000 ($Nil per share) in the quarter ended September 30, 2013 (“Q3 2013”)
compared to a loss of $5,698,000 ($0.01 loss per share) in the quarter ended
September 30, 2012 (“Q3 2012”).
- Eastplats recorded a loss attributable to equity shareholders of the Company of
$155,293,000 ($0.17 loss per share) in the nine months ended September 30, 2013
(“9M 2013”) compared to a loss of $101,745,000 ($0.11 loss per share) in the nine
months ended September 30, 2012 (“9M 2012”).
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 and nine months ended September 30, 2013. These financial
statements and MD&A, and the comparative financial statements for the three and nine
months ended September 30, 2012 are all available on SEDAR at www.sedar.com and on the
Company’s website www.eastplats.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:
Neil Elliot, Damien Hackett
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.
Eastern Platinum Limited
Condensed consolidated interim statements of loss
(Expressed in thousands of U.S. dollars, except per share amounts - unaudited)
Three months ended Nine months ended
September 30, September 30,
2013 2012 2013 2012
Revenue $ 1,341 $ 23,329 $ 31,244 $ 85,137
Cost of operations
Production costs 3,618 26,319 46,951 95,224
Depletion and depreciation 249 3,192 4,840 11,325
Impairment - - 147,787 88,278
(Gain) loss on disposal of
property, plant and equipment (1,108) (167) (1,689) 1,402
2,759 29,344 197,889 196,229
Mine operating loss (1,418) (6,015) (166,645) (111,092)
Expenses
General and administrative 3,021 2,142 6,421 7,300
Care and maintenance 1,747 40 2,516 92
Care and maintenance
depreciation 748 - 856 -
Share-based payments 32 (31) 3,174 2,309
5,548 2,151 12,967 9,701
Operating loss (6,966) (8,166) (179,612) (120,793)
Other income (expense)
Interest income 580 791 1,582 2,720
Other income 24 312 1,148 911
Finance costs (649) (281) (1,146) (5,380)
Foreign exchange gain (loss) 586 (138) 193 64
Loss before income taxes (6,425) (7,482) (177,835) (122,478)
Income tax (expense) recovery (94) (98) (291) 12,377
Net loss for the period $ (6,519) $ (7,580) $ (178,126) $ (110,101)
Attributable to
Non-controlling interest $ (1,902) $ (1,882) $ (22,833) $ (8,356)
Equity shareholders of the
Company (4,617) (5,698) (155,293) (101,745)
Net loss for the period $ (6,519) $ (7,580) $ (178,126) $ (110,101)
Loss per share
Basic $ (0.00) $ (0.01) $ (0.17) $ (0.11)
Diluted $ (0.00) $ (0.01) $ (0.17) $ (0.11)
Weighted average number of common shares outstanding in thousands
Basic 927,805 927,499 927,805 927,499
Diluted 927,805 927,499 927,805 927,499
Approved and authorized for issue by the Board on November 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 Nine months ended
September 30, September 30,
2013 2012 2013 2012
Net loss for the period $ (6,519) $ (7,580) $ (178,126) $ (110,101)
Other comprehensive loss
Items that may subsequently be
reclassified to loss or profit
Exchange differences on translating
foreign operations (4,667) (2,861) (87,824) (9,675)
Exchange differences on translating
non-controlling interest 535 122 3,126 341
Comprehensive loss for the period $ (10,651) $ (10,319) $ (262,824) $ (119,435)
Attributable to
Non-controlling interest (1,367) (1,760) (19,707) (8,015)
Equity shareholders of the Company (9,284) (8,559) (243,117) (111,420)
Comprehensive loss for the period $ (10,651) $ (10,319) $ (262,824) $ (119,435)
Eastern Platinum Limited
Condensed consolidated interim statements of financial position as at
September 30, 2013, December 31, 2012 and January 1, 2012
(Expressed in thousands of U.S. dollars - unaudited)
September 30, December 31, January 1,
2013 2012 2012
Assets
Current assets
Cash and cash equivalents $ 16,573 $ 70,699 $ 151,838
Short-term investments 81,634 60,226 98,963
Trade and other receivables 6,678 14,854 22,842
Inventories 2,980 4,746 7,989
107,865 150,525 281,632
Non-current assets
Property, plant and equipment 353,027 577,031 615,439
Refining contract 2,461 7,270 9,009
Other assets 9,060 9,062 7,995
$ 472,413 $ 743,888 $ 914,075
Liabilities
Current liabilities
Trade and other payables $ 9,428 $ 17,387 $ 39,945
Finance leases - - 1,675
9,428 17,387 41,620
Non-current liabilities
Provision for environmental
rehabilitation 10,736 12,066 8,390
Deferred tax liabilities 17,441 19,977 33,520
37,605 49,430 83,530
Equity
Issued capital 1,230,358 1,230,358 1,230,358
Treasury shares (204) (204) (334)
Equity-settled employee
benefits reserve 7,638 8,991 34,391
Foreign currency
translation reserve (189,987) (102,163) (77,142)
Deficit (581,880) (431,114) (355,028)
Capital and reserves
attributable to
equity shareholders
of the Company 465,925 705,868 832,245
Non-controlling interest (31,117) (11,410) (1,700)
434,808 694,458 830,545
$ 472,413 $ 743,888 $ 914,075
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,
2013 2012 2013 2012
Operating activities
Loss before income taxes $ (6,425) $ (7,482) $ (177,835) $ (122,478)
Adjustments to net loss for
non-cash items
Depletion and depreciation 814 3,259 5,513 11,525
Impairment - - 147,787 88,278
(Gain) loss on disposal of
property, plant and equipment (1,108) (167) (1,689) 1,402
Refining contract amortization 277 335 877 1,032
Share-based payments 32 (31) 3,174 2,309
Interest income (580) (791) (1,582) (2,720)
Finance costs 649 281 1,146 5,380
Foreign exchange (gain) loss (586) 138 (193) (64)
Net changes in non-cash
working capital items
Trade and other receivables 6,959 (3,039) 7,265 (6,231)
Inventories 8 (402) 1,084 920
Trade and other payables (8,958) (5,936) (5,938) (6,675)
Cash used in operations (8,918) (13,835) (20,391) (27,322)
Adjustments to net loss
for cash items
Interest income received 457 979 1,446 3,035
Finance costs paid (1,237) (165) (1,331) (4,631)
Taxes received 31 - 923 543
Net operating cash flows (9,667) (13,021) (19,353) (28,375)
Investing activities
Net maturity of short-term
investments (22,272) 46,919 (23,164) 34,897
Purchase of other assets (501) (435) (1,505) (1,147)
Property, plant and
equipment expenditures (1,090) (23,886) (10,011) (80,540)
Disposal of property, plant
and equipment 2,292 218 3,360 772
Net investing cash flows (21,571) 22,816 (31,320) (46,018)
Financing activities
Acquisition of Lion's Head - - - (10,000)
Payment of finance leases - - - (1,553)
Net financing cash flows - - - (11,553)
Effect of exchange rate
changes on cash and
cash equivalents 1,030 1,470 (3,453) 2,770
Decrease in cash and
cash equivalents (30,208) 11,265 (54,126) (83,176)
Cash and cash equivalents,
beginning of period 46,781 57,397 70,699 151,838
Cash and cash equivalents,
end of period $ 16,573 $ 68,662 $ 16,573 $ 68,662
Date: 15/11/2013 09:08:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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