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EPS - Eastern Platinum Reports Results For The Quarter Ended September 30, 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
November 13, 2008
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
S&P TSX Composite Index
NEWS RELEASE
EASTERN PLATINUM REPORTS RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2008
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") is
pleased to report on financial results for the quarter ended September 30,
2008.
Highlights for the quarter ended September 30, 2008 ("Q3 2008")
Eastplats recorded a net loss of $10,561,000 ($0.02 loss per share) compared to
a net loss of $1,390,000 ($0.00 loss per share) in the third quarter of 2007
("Q3 2007"). The Company`s net loss increased over Q3 2007 primarily due to a
significant decline in the price of PGMs during Q3 2008.
* Production at the Crocodile River Mine ("CRM") increased by 5% to 30,758
PGM ounces, from 29,417 PGM ounces in Q3 2007.
* Negative provisional sales price adjustments (prior months` adjustment and
end of quarter mark-to-market) of $29,416,000 were recorded in the quarter,
causing revenues from CRM to decrease by 70% to $9,291,000 compared to
$31,452,000 in Q3 2007.
* The average realized basket price per PGM ounce was $1,193, an increase of
10% compared to $1,088 in Q3 2007, but a decrease of 28% compared to $1,657
in the second quarter of 2008 ("Q2 2008").
* EBITDA was negative $11,338,000 compared to $11,036,000 in Q3 2007.
* Operating cash costs were $672 per ounce, an increase of 5% compared to
$637 per ounce in Q3 2007, but a decrease of 3% compared to $696 per ounce
in Q2 2008.
* Operating cash costs net of by-product credits was $521 per ounce, as the
chrome recovery circuit became fully integrated at the end of the last
quarter.
* Recovery rates improved to 78%, compared to 72% in Q3 2007, following
planned improvements to the concentrator circuit at the CRM.
* Average grade was 3.99 grams per tonne (5PGE+Au) compared to 4.10 grams per
tonne (5PGE+Au) in Q3 2007.
* Stoping units for the quarter increased by 12% to 39,652 square meters,
compared to 35,262 square meters in Q3 2007.
* Total underground development increased by 15% to 5,599 meters during the
quarter (4,868 meters in Q3 2007).
* The average mining rate decreased by 1% to 106,487 tonnes per month during
Q3 2008 from 107,926 tonnes per month in Q3 2007.
* At September 30, 2008, the Company had a cash position (including cash,
cash equivalents and short term investments) of $172,060,000 (December 31,
2007 - $189,856,000).
"The significant decline in PGM prices during the last four months has had a
negative impact on the Company`s cash flow. Given the challenging markets we
are currently facing and the uncertainty of future market conditions, we have
addressed capital expenditures in order to preserve our robust cash balances by
rescheduling our development projects, Crocette, Spitzkop and Mareesburg and we
have made significant progress in reducing our operating costs at CRM. We
believe we have taken the appropriate action to make Eastplats well positioned
to benefit quickly when the PGM market recovers", said Ian Rozier.
The qualified person having reviewed the operating disclosures presented in
this press release is Mr. Brian Montpellier, V.P. Project Development, P. Eng.
Financial Information
For the complete details of the financial results, please refer to the SENS
announcements released simultaneously herewith regarding the unaudited
consolidated financial statements and the accompanying Management`s Discussion
and Analysis ("MD&A") for the three and nine months ended September 30, 2008.
These financial statements and MD&A, and the comparative financial
statements for the three and nine months ended September 30, 2007 are all
available on SEDAR at www.sedar.com and on the Company`s website
www.eastplats.com.
Teleconference call details
Eastern Platinum Limited will host a telephone conference call on Thursday
November 13, 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 Thursday November
20, 2008 and can be accessed by dialing 1-604-638-9010 or 1-800-319-6413 and
using the pass code 4219 followed by the number sign (#).
Total shares issued and outstanding - 680,526,421
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: JSE Sponsor:
Canaccord Adams Limited, London PSG Capital (Pty) Limited, South Africa
Email: Ryan.Gaffney@canaccordadams.com Email: anjem@psgcapital.com
Tel: +44 20 7050 6500 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.
Date: 13/11/2008 17:02:30 Supplied by www.sharenet.co.za
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,
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howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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