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EPS - Eastern Platinum Reports Record Earnings For The Three Months Ending
March 31, 2008 - News Release
EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR ISIN: CA2768551038
Share Code AIM: ELR ISIN: CA2768551038
Share Code JSE: EPS ISIN: CA2768551038
NEWS RELEASE
EASTERN PLATINUM REPORTS RECORD EARNINGS FOR THE THREE MONTHS ENDING
MARCH 31, 2008
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited("Eastplats") is
pleased to report on financial results for the three months ended March
31,2008.
Highlights for the quarter ended March 31, 2008 ("Q1 2008")
Eastplats posted record net earnings of USD19,962,000 (USD0.03 per
share)compared to a net loss of USD9,939,000 (USD0.02 loss per share) in the
first quarter of 2007 ("Q1 2007"). The Company`s results improved over Q1
2007 primarily due to a significant increase in revenues and increased PGM
production.
Revenues from the Crocodile River Mine increased by 80% to
USD56,408,000,generated from the sale of 27,825 PGM ounces, compared to
revenues of USD31,332,000 from the sale of 26,807 PGM ounces in Q1 2007.
EBITDA increased by 217% to USD36,658,000 from USD11,569,000 in Q1 2007.
The average sales price per PGM ounce increased by 44% to USD1,621 compared
to USD1,130 in Q1 2007.
Operating cash costs decreased by 1% to USD698 per ounce, compared to USD704
per ounce in Q1 2007.
Recovery rates improved to 78% compared to 73% in Q1 2007, due to improved
plant operating efficiencies at the Crocodile River Mine.
Grades improved to 4.04 grams per ton (5PGE+Au) compared to 3.91 grams per
ton (5PGE+Au) in Q1 2007.
Stoping units for the quarter increased by 45% to a record 38,349 square
meters, compared to 26,441 square meters in Q1 2007.
Total underground development increased by 20% to 4,409 meters during the
quarter (3,687 meters in Q1 2007) as the Company continues to make
substantial progress in the development of the ore reserve at CRM.
The average mining rate increased to 93,012 tons per month during Q1 2008
from 70,610 tons per month in Q1 2007.
The chrome recovery plant was commissioned in March 2008. The chrome plant
will effectively reduce chrome content, and as a result the chrome penalties,
in the concentrate being sold under the Company`s primary off-take agreement.
At March 31, 2008, the Company had a cash position (including cash and cash
equivalents and short term investments) of USD169,943,000 (December 31, 2007
- USD189,856,000).
"Despite power interruptions and ongoing reductions in power supply during
the first quarter, our PGM production increased compared to the quarter ended
December 31, 2007 and we achieved record earnings for the quarter", said Mr.
Rozier. "Mining rates, underground development rates and recovery rates are
all up, and with sustained high PGM prices, we look forward to continued
profitability at the Crocodile River Mine. We have also commenced underground
development at the Crocette Section at CRM as well as at our Spitzkop
property on the eastern limb and plan on bringing them into production as
quickly as possible in order to take advantage of the high PGM prices."
Financial Information
For complete details of financial results, please refer to the attached
audited consolidated financial statements and accompanying Management`s
Discussion and Analysis ("MD&A") for the three months ended March 31, 2008.
These financial statements and MD&A, and the comparative financial statements
for the three months ended March 31, 2007 are all available on SEDAR at
www.sedar.com and on the Company`s website www.eastplats.com.
About the Company
Eastplats is an expanding platinum group metals ("PGM") producer engaged in
the mining and development of PGM`s with properties located in various
provinces in South Africa. All of the Company`s properties are situated on
the western and eastern limbs of the Bushveld Complex ("BC"), the geological
environment that supports over 75% of the world`s PGM supply.
The Company`s primary operating asset is an 85% direct and indirect interest
in Barplats Investments Limited ("Barplats"), whose main assets are the PGM
producing Crocodile River Mine located on the western limb of the BC and the
non-producing Kennedy`s Vale Project located on the eastern limb of the BC.
The Company also has a 75.5% direct and indirect interest in Mareesburg
Platinum JV ("Mareesburg") and a 93.4% direct and indirect interest in
Spitzkop PGM Project ("Spitzkop") both located on the eastern limb of the BC.
The Company`s strategy is to maximize shareholder returns from its Crocodile
River Mine and from its other mining properties under development. The
Company will continue to focus on traditional cost effective mining methods
that place a premium on a safe work environment. The Company takes full
advantage of the current PGM price environment as it has neither hedged nor
sold forward any of its PGM production.
The Company`s shares are listed in Toronto on the TSX and on AIM (Alternative
Investment Market) of the London Stock Exchange and trade under the symbol
ELR.
The Company shares are also listed on the Johannesburg Stock Exchange and
trade under the symbol EPS.
The Company`s Nominated Advisor ("NOMAD") in London is Canaccord Adams
Limited and the Company`s Sponsor in Johannesburg is PSG Capital Limited.
Teleconference call details Eastern Platinum Limited will host a telephone
conference call on Thursday May 15, 2008 at 10:00 am Pacific (1:00 pm
Eastern) to discuss these results. The conference call may be accessed by
dialing 1-800-319-4610 in Canada and the United States, or 1-604-638-5340
internationally.
The conference call will be archived for later playback until Wednesday May
21, 2008 and can be accessed by dialing 604-638-9010 or 1-800-319-6413 and
using the pass code 4219 followed by the number sign (#).
Total shares issued and outstanding - 680,090,604
Mar 31, 2008 financials to be attached here.
Mar 31, 2008 MD&A to be attached here.
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 - Canaccord Adams Limited
Ryan Gaffney - Ryan.Gaffney@CanaccordAdams.com
+44 20 7050 6500
JSE SPONSOR - PSG Capital (Pty) Limited
Anje Maasdorp - anjem@psgcapital.com
+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, are
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.
Stellenbosch
15 May 2008
Sponsor
PSG Capital (Pty) Limited
Date: 15/05/2008 14:17:01 Supplied by www.sharenet.co.za
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