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EASTERN PLATINUM LIMITED - News release -Eastern Platinum Limited reports financial results for the quarter ended March 31

Release Date: 15/05/2014 08:30
Code(s): EPS     PDF:  
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News release -Eastern Platinum Limited reports financial results  for the quarter ended March 31

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, 2014
Trading Symbol: ELR (TSX & AIM) EPS (JSE)

NEWS RELEASE

EASTERN PLATINUM LIMITED REPORTS FINANCIAL RESULTS FOR THE
QUARTER ENDED MARCH 31, 2014 AND PROPOSES SHARE CONSOLIDATION

Summary of results for the quarter ended March 31, 2014:

Eastern Platinum Limited (“Eastplats” or the “Company”) announces its financial results for the
quarter ended March 31, 2014 (all monetary figures are stated in U.S. dollars):

-   At March 31, 2014, the Company had a cash position of $87,046,000 (December 31, 2013 –
    $92,960,000). The Company’s cash position includes cash, cash equivalents and short-term
    investments held primarily in Canadian dollars, which was negatively impacted during the
    quarter as the Canadian dollar weakened by 3.8% against the U.S. dollar between December 31,
    2013 and March 31, 2014.

-   Eastplats recorded a loss attributable to equity shareholders of the Company of $1,996,000 ($0.00
    per share) in the three months ended March 31, 2014 (“Q1 2014”) compared to a loss of
    $10,966,000 ($0.01 loss per share) in the three months ended March 31, 2013 (“Q1 2013”).

-   General and administrative costs decreased 57% from $1,698,000 in Q1 2013 compared to
    $729,000 in Q1 2014.

-   In Q1 2014, Eastplats incurred care and maintenance costs of $2,862,000 in aggregate at its
    Crocodile River Mine, which was placed on care and maintenance on August 1, 2013 and at its
    Eastern Limb project, which was placed on care and maintenance in the fourth quarter of 2012.

For complete details of financial results, please refer to the condensed consolidated interim financial
statements and accompanying Management’s Discussion and Analysis (“MD&A”) for the three
months ended March 31, 2014. These financial statements and MD&A, and the comparative
financial statements for the three months ended March 31, 2013 are all available on SEDAR at
www.sedar.com and on the Company’s website www.eastplats.com.

Share consolidation and subdivision

At the Company’s annual general and special meeting scheduled to be held on June 12, 2014,
shareholders will be asked to consider and, if thought fit, to adopt a special resolution to:
(a)     consolidate (the “Consolidation”) all of the issued and outstanding common shares of the
        Company (the “Pre-Consolidation Shares”) on the basis of one (1) new common share (a
        “Consolidated Share”) for each one thousand (1,000) Pre-Consolidation Shares;

(b)     purchase for cancellation all of the fractional shares held by any shareholder who holds less than
        one (1) Consolidated Share, by payment in cash; and

(c)     to subsequently subdivide or split (the “Subdivision”) all of the Consolidated Shares on the basis
        of one hundred (100) new common shares (the “New Common Shares”) for each whole
        Consolidated Share being subdivided.

As a result of the above, any shareholder holding less than 1,000 Pre-Consolidation Shares will be
entitled to receive a cash payment for equal to that number of Pre-Consolidated Shares multiplied by an
amount equal to the average weighted trading price of the Pre-Consolidated Shares on the TSX and the
JSE, whichever is applicable, for the ten trading days preceding the effective date of the Consolidation.

Upon the Consolidation and Subdivision being completed, the Company’s transfer agent will, as soon as
practicable, allow shareholders to exchange their share certificates representing Pre-Consolidation Shares
for a certificate representing the appropriate number of New Common Shares.

It is currently envisaged that the New Common Shares will commence trading on the TSX and the JSE on
or about June 27, 2014.

For complete details of the share consolidation and subdivision, please refer to the Company’s
management proxy circular dated May 2, 2014 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
Condensed consolidated interim statements of loss
(Expressed in thousands of U.S. dollars, except per share amounts - unaudited)

                                                                    Three months ended
                                                                  March 31,      March 31,
                                                                    2014           2013

Revenue                                                       $             -    $      13,342

Cost of operations
 Production costs                                                           -           18,059
 Depletion and depreciation                                                 -            2,222
 Gain on disposal of property, plant
   and equipment                                                        (143)             (270)
                                                                        (143)           20,011
Mine operating earnings (loss)                                           143            (6,669)

Expenses
  General and administrative                                             729             1,698
  Care and maintenance                                                 2,862               386
  Care and maintenance
    depreciation and amortization                                        640                63
  Share-based payments                                                     9             3,090
                                                                       4,240             5,237

Operating loss                                                        (4,097)          (11,906)
Other income (expense)
 Interest income                                                         527               544
 Other income                                                            419               321
 Finance costs                                                          (187)             (262)
 Foreign exchange gain (loss)                                             25            (1,818)

Loss before income taxes                                              (3,313)          (13,121)
Income tax (expense) recovery                                           (118)               55
Net loss for the period                                       $       (3,431) $        (13,066)

Attributable to
 Non-controlling interest                                     $       (1,435) $         (2,100)
 Equity shareholders of the
    Company                                                           (1,996)          (10,966)
Net loss for the period                                       $       (3,431) $        (13,066)

Loss per share
  Basic                                                       $        (0.00) $          (0.01)
  Diluted                                                     $        (0.00) $          (0.01)

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

Approved and authorized for issue by the Board on May 12, 2014.

"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,    March 31,
                                                                         2014         2013

Net loss for the period                                            $       (3,431) $    (13,066)
Other comprehensive loss
  Items that may subsequently be reclassified to loss or profit
    Exchange differences on translating foreign operations                 (4,387)      (46,370)
    Exchange differences on translating non-controlling interest               39           907
Comprehensive loss for the period                                  $       (7,779) $    (58,529)

Attributable to
  Non-controlling interest                                                 (1,396)       (1,193)
  Equity shareholders of the Company                                       (6,383)      (57,336)
Comprehensive loss for the period                                  $       (7,779) $    (58,529)
Eastern Platinum Limited
Condensed consolidated interim statements of financial position as at
March 31, 2014 and December 31, 2013
(Expressed in thousands of U.S. dollars - unaudited)

                                                        March 31,     December 31,
                                                          2014            2013

Assets
Current assets
 Cash and cash equivalents                          $        6,414    $     14,489
 Short-term investments                                     80,632          78,471
 Trade and other receivables                                 3,550           3,608
 Inventories                                                 2,767           2,777
                                                            93,363          99,345

Non-current assets
 Property, plant and equipment                             334,732         336,628
 Refining contract                                           1,827           2,095
 Other assets                                                9,607           9,180
                                                    $      439,529    $    447,248

Liabilities
Current liabilities
  Trade and other payables                          $        5,985    $       6,086
                                                             5,985            6,086

Non-current liabilities
 Provision for environmental rehabilitation                  9,582           9,414
 Deferred tax liabilities                                   16,787          16,803
                                                            32,354          32,303

Equity
 Issued capital                                          1,230,358        1,230,358
 Treasury shares                                              (204)            (204)
 Equity-settled employee benefits
   reserve                                                   5,343            5,334
 Foreign currency translation reserve                     (212,807)        (208,420)
 Deficit                                                  (583,099)        (581,103)
 Capital and reserves attributable to
   equity shareholders of the Company                      439,591         445,965
 Non-controlling interest                                  (32,416)        (31,020)
                                                           407,175         414,945
                                                    $      439,529 $       447,248
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,
                                                             2014            2013
Operating activities
Loss before income taxes                               $       (3,313)   $      (13,121)
Adjustments to net loss for non-cash items
  Depletion and depreciation                                      386            2,285
  Gain on disposal of property, plant
    and equipment                                                (143)            (270)
  Refining contract amortization                                  254              309
  Share-based payments                                              9            3,090
  Interest income                                                (527)            (544)
  Finance costs                                                   187              262
  Foreign exchange (gain) loss                                    (25)           1,818
  Environmental expense                                             -                -
  Allowance for bad debts                                           -                -
Net changes in non-cash working capital items
  Trade and other receivables                                     161               367
  Inventories                                                       3               (52)
  Trade and other payables                                        (74)              (52)
Cash used in operations                                        (3,082)           (5,908)
Adjustments to net loss for cash items
  Interest income received                                        383               377
  Finance costs paid                                                -               (44)
  Taxes received                                                   21               465
Net operating cash flows                                       (2,678)           (5,110)

Investing activities
  Net (purchase) maturity of short-term
    investments                                                (5,140)            9,855
  Increase in other assets                                       (438)             (537)
  Property, plant and equipment expenditures                      (72)           (5,004)
  Disposal of property, plant and equipment                       783               525
Net investing cash flows                                       (4,867)            4,839

Effect of exchange rate changes on cash and
  cash equivalents                                               (530)           (3,996)

Decrease in cash and cash equivalents                          (8,075)          (4,267)
Cash and cash equivalents, beginning of period                 14,489           70,699
Cash and cash equivalents, end of period               $        6,414    $      66,432

Date: 15/05/2014 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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