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

EASTERN PLATINUM LIMITED - News release: Eastern Platinum Limited reports financial results for the quarter and year ended December 31, 2013

Release Date: 14/03/2014 08:45
Code(s): EPS     PDF:  
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'). 
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