Wrap Text
News release: Eastern Platinum Limited reports financial results for the quarter and year ended December 31, 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
March 14, 2014
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
NEWS RELEASE
EASTERN PLATINUM LIMITED REPORTS FINANCIAL RESULTS
FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2013
As a result of the suspension of production at the end of July 2013, the Company believes that it is
not meaningful to compare the operations of the year ended December 31, 2013 against the
operations of the year ended December 31, 2012. However, for information purposes, certain
production statistics have been provided in the Management’s Discussion and Analysis which
accompanies the audited consolidated financial statements for the year ended December 31, 2013.
Summary of results for the quarter ended December 31, 2013:
- At December 31, 2013, the Company had a cash position (including cash, cash equivalents
and short term investments) of $92,960,000 (December 31, 2012 – $130,925,000).
- Eastplats recorded a loss attributable to equity shareholders of the Company of $1,559,000
($0.00 per share) in the three months ended December 31, 2013 (“Q4 2013”) compared to a
loss of $1,963,000 ($0.00 loss per share) in the three months ended December 31, 2012 (“Q4
2012”).
- General and administrative costs decreased 60% from $2,151,000 in Q4 2012 compared to
$861,000 in Q4 2013.
- Eastplats incurred care and maintenance costs of $2,807,000 at CRM and at its Eastern Limb
project in Q4 2013.
Summary of results for the year ended December 31, 2013
- Production at CRM scaled down with effect from June 22, 2013 and ceased by the end of
July 2013. CRM was placed on care and maintenance commencing August 1, 2013.
- Eastplats recorded a loss attributable to equity shareholders of the Company of $156,852,000
($0.17 per share) for the year ended December 31, 2013 (“2013”) compared to a loss of
$103,708,000 ($0.11 loss per share) for the year ended December 31, 2012 (“2012”).
- Adjusted EBITDA was negative $14,825,000 in 2013 compared to negative $12,558,000 in
2012.
- PGM ounces sold decreased 68% to 27,352 ounces in 2013 compared to 86,225 PGM ounces
in 2012.
- The U.S. dollar average delivered price per PGM ounce decreased to $918 in 2013 compared
to $925 in 2012.
- The Rand average delivered price per PGM ounce increased 13% to R8,500 in 2013
compared to R7,528 in 2012.
- During the year, the Company recorded an impairment charge of $147,787,000 against its
Crocodile River Mine.
Financial Information
For complete details of financial results, please refer to the audited condensed consolidated financial
statements and accompanying Management’s Discussion and Analysis (“MD&A”) for the year ended
December 31, 2013. These financial statements and MD&A, and the comparative financial
statements for the year ended December 31, 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 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. 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
Consolidated statements of loss
(Expressed in thousands of U.S. dollars, except per share amounts)
Year ended Year ended
December 31, December 31,
2013 2012
Revenue $ 31,783 $ 102,433
Cost of operations
Production costs 47,045 115,389
Depletion and depreciation 4,840 13,512
Impairment 147,787 88,278
(Gain) loss on disposal of property, plant
and equipment (2,177) 584
197,495 217,763
Mine operating loss (165,712) (115,330)
Expenses
General and administrative 7,282 9,451
Care and maintenance 5,323 681
Care and maintenance
depreciation 1,735 63
Share-based payments 3,206 2,374
17,546 12,569
Operating loss (183,258) (127,899)
Other income (expense)
Interest income 2,137 3,407
Other income 1,675 1,460
Finance costs (1,327) (5,619)
Foreign exchange gain 200 741
Loss before income taxes (180,573) (127,910)
Income tax (expense) recovery (358) 13,968
Net loss for the period $ (180,931) $ (113,942)
Attributable to
Non-controlling interest $ (24,079) $ (10,234)
Equity shareholders of the
Company (156,852) (103,708)
Net loss for the period $ (180,931) $ (113,942)
Loss per share
Basic $ (0.17) $ (0.11)
Diluted $ (0.17) $ (0.11)
Weighted average number of common shares outstanding in thousands
Basic 927,805 927,525
Diluted 927,805 927,525
Approved and authorized for issue by the Board on March 11, 2014.
"David Cohen" "Robert Gayton"
David Cohen, Director Robert Gayton, Director
Eastern Platinum Limited
Consolidated statements of comprehensive loss
(Expressed in thousands of U.S. dollars)
Year ended Year ended
December 31, December 31,
2013 2012
Net loss for the period $ (180,931) $ (113,942)
Other comprehensive loss
Items that may subsequently be reclassified to loss or profit
Exchange differences on translating foreign operations (106,257) (25,021)
Exchange differences on translating non-controlling interest 4,469 524
Comprehensive loss for the period $ (282,719) $ (138,439)
Attributable to
Non-controlling interest (19,610) (9,710)
Equity shareholders of the Company (263,109) (128,729)
Comprehensive loss for the period $ (282,719) $ (138,439)
Eastern Platinum Limited
Consolidated statements of financial position as at
December 31, 2013, December 31, 2012 and January 1, 2012
(Expressed in thousands of U.S. dollars)
December 31, December 31, January 1,
2013 2012 2012
Assets
Current assets
Cash and cash equivalents $ 14,489 $ 70,699 $ 151,838
Short-term investments 78,471 60,226 98,963
Trade and other receivables 3,608 14,854 22,842
Inventories 2,777 4,746 7,989
99,345 150,525 281,632
Non-current assets
Property, plant and equipment 336,628 577,031 615,439
Refining contract 2,095 7,270 9,009
Other assets 9,180 9,062 7,995
$ 447,248 $ 743,888 $ 914,075
Liabilities
Current liabilities
Trade and other payables $ 6,086 $ 17,387 $ 39,945
Finance leases - - 1,675
6,086 17,387 41,620
Non-current liabilities
Provision for environmental
rehabilitation 9,414 12,066 8,390
Deferred tax liabilities 16,803 19,977 33,520
32,303 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 5,334 8,991 34,391
Foreign currency
translation reserve (208,420) (102,163) (77,142)
Deficit (581,103) (431,114) (355,028)
Capital and reserves
attributable to
equity shareholders
of the Company 445,965 705,868 832,245
Non-controlling interest (31,020) (11,410) (1,700)
414,945 694,458 830,545
$ 447,248 $ 743,888 $ 914,075
Eastern Platinum Limited
Consolidated statements of cash flows
(Expressed in thousands of U.S. dollars)
Year ended Year ended
December 31, December 31,
2013 2012
Operating activities
Loss before income taxes $ (180,573) $ (127,910)
Adjustments to net loss for
non-cash items
Depletion and depreciation 6,118 13,775
Impairment 147,787 88,278
(Gain) loss on disposal of property, plant
and equipment (2,177) 584
Refining contract amortization 1,149 1,350
Share-based payments 3,206 2,374
Interest income (2,137) (3,407)
Finance costs 1,327 5,619
Foreign exchange gain (200) (741)
Environmental expense (439) -
Allowance for bad debts 89
Net changes in non-cash working capital items
Trade and other receivables 10,116 6,829
Inventories 1,165 2,830
Trade and other payables (8,760) (10,111)
Cash used in operations (23,418) (20,441)
Adjustments to net loss for cash items
Interest income received 2,099 3,726
Finance costs paid (1,335) (4,692)
Taxes received 694 906
Taxes paid - (363)
Net operating cash flows (21,960) (20,864)
Investing activities
Net maturity of short-term investments (22,550) 40,835
Purchase of other assets (2,019) (1,504)
Property, plant and equipment expenditures (9,961) (92,549)
Disposal of property, plant and equipment 4,268 1,845
Net investing cash flows (30,262) (51,373)
Financing activities
Acquisition of Lion's Head - (10,000)
Payment of finance leases - (1,554)
Net financing cash flows - (11,554)
Effect of exchange rate changes on cash and
cash equivalents (3,988) 2,652
Decrease in cash and cash equivalents (56,210) (81,139)
Cash and cash equivalents, beginning of period 70,699 151,838
Cash and cash equivalents, end of period $ 14,489 $ 70,699
Date: 14/03/2014 08:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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