To view the PDF file, sign up for a MySharenet subscription.

EASTERN PLATINUM LIMITED - News Release: Eastern Platinum Reports Results for the three and nine months ended 30 September 2013

Release Date: 15/11/2013 09:08
Code(s): EPS     PDF:  
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'). 
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.

Share This Story