Wrap Text
EPS - Eastern Platinum Limited - Eastern Platinum reports results for the three
months ended September 30, 2010
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 RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2010
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") is
pleased to report financial results for the three and nine months ended
September 30, 2010.
Summary of results for the quarter ended September 30, 2010 ("Q3 2010"):
* Eastplats recorded a net profit attributable to equity shareholders of the
Company of $4,039,000 ($0.01 basic earnings per share) in Q3 2010 compared
to $1,839,000 ($0.00 per share) in the third quarter of 2009 ("Q3 2009").
* Revenue increased 39% to $38,073,000 in Q3 2010 compared to $27,635,000 in
Q3 2009.
* EBITDA increased 124% to $11,120,000 in Q3 2010 compared to $4,971,000 in
Q3 2009.
* During the quarter, the Company recorded a one-time adjustment to chrome
revenues that resulted from a change to the timing of chrome revenue
recognition. Under the previous method of chrome revenue recognition, the
Company`s revenues would have been $41,254,000, EBITDA would have been
$12,195,000, and net profit attributable to equity shareholders of the
Company would have been $4,979,000. (See below for more details.)
* Stoping units increased 40% to 50,892 square meters in Q3 2010 compared to
36,263 square meters in Q3 2009.
* Development meters increased by 14% to 3,299 meters and on-reef development
increased by 15% to 1,797 meters compared to Q3 2009.
* Run-of-mine ore hoisted increased by 48% to 362,042 tonnes in Q3 2010
compared to 244,959 tonnes in Q3 2009.
* Run-of-mine ore processed increased by 27% to 357,219 tonnes in Q3 2010
compared to 280,777 tonnes in Q3 2009.
* Head grade decreased to 4.0 grams per tonne in Q3 2010 from 4.1 grams per
tonne in Q3 2009.
* Average concentrator recovery improved to 81% in Q3 2010 compared to 78% in
Q3 2009.
* PGM ounces sold increased 26% to a quarterly record of 37,798 ounces in Q3
2010 compared to 29,986 PGM ounces in Q3 2009.
* The U.S. dollar average delivered basket price per PGM ounce increased 25%
to $953 in Q3 2010 compared to $765 in Q3 2009.
* The Rand average delivered basket price per PGM ounce increased 17% to
R6,966 in Q3 2010 compared to R5,967 in Q3 2009.
* Rand operating cash costs net of by-product credits were R4,566 per ounce
in Q3 2010, consistent with R4,548 per ounce in Q3 2009. Rand operating cash
costs decreased 12% to R5,212 per ounce in Q3 2010 compared to R5,915 per
ounce in Q3 2009.
* U.S. dollar operating cash costs net of by-product credits increased 7% to
$625 per ounce in Q3 2010 compared to $583 per ounce achieved in Q3 2009.
U.S. dollar operating cash costs decreased 6% to $713 per ounce in Q3 2010
compared to the $758 per ounce in Q3 2009.
* The Company`s Lost Time Injury Frequency Rate (LTIFR) was 4.66 in Q3 2010
compared to 1.69 in Q3 2009.
* At September 30, 2010, the Company had a cash position (including cash,
cash equivalents and short term investments) of $20,005,000 (December 31,
2009 - $21,658,000).
During the quarter, the Company reassessed the timing of its chrome revenue
recognition and determined that it was more appropriate to recognize chrome
revenues at the time the physical chrome crossed the ship`s rail at the port of
shipment. This resulted in the recording of chrome inventory of $2,201,000 at
September 30, 2010 representing 45,752 tonnes of chrome in transit, and a
corresponding one-time adjustment to chrome revenues as discussed above.
"Our record quarterly production is a result of our ongoing efforts to
streamline operations at CRM. We look forward to further improvements, as well
as production from Crocette which we expect to contribute ounces within the next
12 months. We also look forward to developing our Eastern Limb projects now that
we have the necessary New Order Mining Rights, and have secured power and water
supply." said Ian Rozier.
The qualified person having reviewed the operating disclosures presented in this
press release is Mr. Brian Montpellier, P. Eng, V.P. Project Development.
Financial Information
For complete details of financial results, please refer to the SENS
announcements released simultaneously herewith regarding the unaudited condensed
consolidated financial statements and accompanying Management`s Discussion and
Analysis ("MD&A") for the three and nine months ended September 30, 2010. These
financial statements and MD&A, and the comparative financial statements for the
three and nine months ended September 30, 2009 are all available on SEDAR at
www.sedar.com and on the Company`s website www.eastplats.com.
Teleconference call details
Eastplats will host a telephone conference call on Monday, November 15, 2010 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 Monday, November
22, 2010 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 - 683,179,000
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:
Ryan Gaffney / Ryan Cohen
Canaccord Genuity Limited, London
Email: rgaffney@canaccordgenuity.com / rcohen@canaccordgenuity.com
Tel: +44 20 7050 6500
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. 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: 15/11/2010 16:44:07 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,
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.
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