Wrap Text
News Release: Eastern Platinum reports results
for the quarter and year ended December 31, 2012
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, 2013
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
NEWS RELEASE
EASTERN PLATINUM REPORTS RESULTS
FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2012
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited (“Eastplats”) reports financial results
for the fourth quarter and year ended December 31, 2012. The results for the fourth quarter reflect
the implementation of the comprehensive mine development plan at the Zandfontein Section of the
Crocodile River Mine (“CRM”), as discussed in the Company’s press release dated June 12, 2012.
Summary of results for the quarter ended December 31, 2012:
Eastplats recorded a loss attributable to equity shareholders of the Company of $1,342,000
($0.00 loss per share) in the quarter ended December 31, 2012 (“Q4 2012”) compared to a
loss of $64,325,000 ($0.07 loss per share) in the quarter ended December 31, 2011 (“Q4
2011”).
Adjusted EBITDA was negative $2,672,000 Q4 2012 compared to negative $6,455,000 in Q4
2011.
PGM ounces sold decreased 29% to 14,066 ounces in Q4 2012 compared to 19,854 PGM
ounces in Q4 2011.
The U.S. dollar average delivered price per PGM ounce increased 1% to $936 in Q4 2012
compared to $931 in Q4 2011.
The Rand average delivered price per PGM ounce increased 8% to R8,134 in Q4 2012
compared to R7,541 in Q4 2011.
Total Rand operating cash costs decreased 29% to R147 million in Q4 2012 compared to
R208 million in Q4 2011.
Rand operating cash costs net of by-product credits decreased 4% to R8,326 per ounce in Q4
2012 compared to R8,685 per ounce in Q4 2011. Rand operating cash costs remained
consistent at R10,428 per ounce in Q4 2012 compared to R10,455 per ounce in Q4 2011.
U.S. dollar operating cash costs net of by-product credits decreased 11% to $958 per ounce in
Q4 2012 compared to $1,072 per ounce achieved in Q4 2011. U.S. dollar operating cash
costs decreased 7% to $1,200 per ounce in Q4 2012 compared to $1,291 per ounce in Q4
2011.
Head grade improved 1% to 4.09 grams per tonne in Q4 2012 compared to 4.05 in Q4 2011.
Average concentrator recovery improved to 77% in Q4 2012 compared to 76% in Q4 2011.
Development meters decreased by 53% to 1,365 meters and on-reef development decreased
by 78% to 350 meters compared to Q4 2011.
Stoping units decreased 48% to 16,468 square meters in Q4 2012 compared to 31,767 square
meters in Q4 2011.
Run-of-mine ore hoisted decreased 36% to 127,654 tonnes in Q4 2012 compared to 200,919
tonnes in Q4 2011.
Run-of-mine ore processed decreased by 37% to 123,222 tonnes in Q4 2012 compared to
194,532 tonnes in Q4 2011.
The Company’s Lost Time Injury Frequency Rate (LTIFR) was 5.68 in Q4 2012 compared to
2.61 in Q4 2011.
At December 31, 2012, the Company had a cash position (including cash, cash equivalents
and short term investments) of $130,925,000 (December 31, 2011 – $250,801,000).
Summary of results for the year ended December 31, 2012
Eastplats recorded a loss attributable to equity shareholders of the Company of $100,953,000
($0.11 loss per share) in the year ended December 31, 2012 compared to a loss of
$76,545,000 ($0.08 loss per share) in the year ended December 31, 2011.
The Company recorded an impairment charge of $88,278,000 on its Eastern Limb properties
in Q2 2012 (Q4 2011 - $46,327,000 on its CRM property).
Adjusted EBITDA decreased to negative $12,558,000 in 2012 compared to negative
$1,411,000 in 2011. The impairment charge was not included in the calculation of adjusted
EBITDA.
PGM ounces sold decreased 7% to 86,225 ounces in 2012 compared to 92,724 PGM ounces
in 2011.
The U.S. dollar average delivered price per PGM ounce decreased 14% to $925 in 2012
compared to $1,073 in 2011.
The Rand average delivered price per PGM ounce decreased 3% to R7,528 in 2012 compared
to R7,726 in 2011.
Total Rand operating cash costs decreased 6% to R777 million in 2012 compared to R828
million in 2011.
Rand operating cash costs net of by-product credits increased 10% to R7,821 per ounce in
2012 compared to R7,118 per ounce in 2011. Rand operating cash costs increased 1% to
R9,009 per ounce in 2012 compared to R8,929 per ounce in 2011.
U.S. dollar operating cash costs net of by-product credits decreased 2% to $961 per ounce in
2012 compared to $984 per ounce achieved in 2011. U.S. dollar operating cash costs
decreased 11% to $1,105 per ounce in 2012 compared to $1,236 per ounce in 2011.
Head grade increased to 4.06 grams per tonne in 2012 from 4.00 grams per tonne in 2011.
Average concentrator recovery remained consistent at 77% in both 2012 and 2011.
Development meters decreased by 36% to 9,470 meters and on-reef development decreased
by 44% to 4,673 meters compared to 2011.
Stoping units decreased 15% to 126,227 square meters in 2012 compared to 148,863 square
meters in 2011.
Run-of-mine ore hoisted decreased 9% to 838,618 tonnes in 2012 compared to 917,343
tonnes in 2011.
Run-of-mine ore processed decreased by 10% to 814,738 in 2012 compared to 903,298
tonnes in 2011.
The Company’s LTIFR was 3.01 in 2012 compared to 1.46 in 2011.
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 audited condensed consolidated financial
statements and accompanying Management’s Discussion and Analysis (“MD&A”) for the year ended
December 31, 2012. These financial statements and MD&A, and the comparative financial
statements for the year ended December 31, 2011 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 Thursday, March 14, 2013 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, March 21, 2013 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 – 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:
Andrew Chubb, Ross Allister
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
Note December 31, December 31,
2012 2011
Revenue 25(c) $ 83,095 $ 113,203
Cost of operations
Production costs 95,653 114,614
Depletion and depreciation 7 13,512 20,451
Impairment 7(e), 16 88,278 46,327
Loss on disposal of property, plant
and equipment 584 -
198,027 181,392
Mine operating loss (114,932) (68,189)
Expenses
General and administrative 7(d) 9,133 11,847
Share-based payments 8(e)(f) 2,374 8,325
11,507 20,172
Operating loss (126,439) (88,361)
Other income (expense)
Interest income 3,407 5,529
Finance costs 9 (5,619) (1,549)
Foreign exchange gain (loss) 741 (2,551)
Loss before income taxes (127,910) (86,932)
Income tax recovery (expense) 10 13,968 (56)
Net loss for the year $ (113,942) $ (86,988)
Attributable to
Non-controlling interest 11 $ (12,989) $ (10,443)
Equity shareholders of the Company (100,953) (76,545)
Net loss for the year $ (113,942) $ (86,988)
Loss per share
Basic 12 $ (0.11) $ (0.08)
Diluted 12 $ (0.11) $ (0.08)
Weighted average number of common shares outstanding in thousands
Basic 12 927,525 908,199
Diluted 12 927,525 908,199
Approved and authorized for issue by the Board on March 12, 2013.
"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,
2012 2011
Net loss for the year $ (113,942) $ (86,988)
Other comprehensive loss
Exchange differences on translating foreign operations (25,289) (120,935)
Exchange differences on translating non-controlling interest 778 (268)
Comprehensive loss for the year $ (138,453) $ (208,191)
Attributable to
Non-controlling interest (12,211) (10,711)
Equity shareholders of the Company (126,242) (197,480)
Comprehensive loss for the year $ (138,453) $ (208,191)
Eastern Platinum Limited
Consolidated statements of financial position as at
December 31, 2012 and 2011
(Expressed in thousands of U.S. dollars)
December 31, December 31,
Note 2012 2011
Assets
Current assets
Cash and cash equivalents 13 $ 70,699 $ 151,838
Short-term investments 60,226 98,963
Trade and other receivables 14 15,556 23,580
Inventories 15 4,746 7,989
151,227 282,370
Non-current assets
Property, plant and equipment 7 577,031 615,439
Refining contract 16 7,270 9,009
Other assets 17 9,062 7,995
$ 744,590 $ 914,813
Liabilities
Current liabilities
Trade and other payables 18 $ 17,879 $ 40,459
Finance leases 19 - 1,675
17,879 42,134
Non-current liabilities
Provision for environmental rehabilitation 20 12,066 8,390
Deferred tax liabilities 10 19,977 33,520
49,922 84,044
Equity
Issued capital 8 1,230,358 1,230,358
Treasury shares 8(c)(f) (204) (334)
Equity-settled employee benefits reserve 43,785 41,563
Foreign currency translation reserve (128,768) (103,479)
Deficit (434,809) (333,856)
Capital and reserves attributable to
equity shareholders of the Company 710,362 834,252
Non-controlling interest 11 (15,694) (3,483)
694,668 830,769
$ 744,590 $ 914,813
Eastern Platinum Limited
Consolidated statements of cash flows
(Expressed in thousands of U.S. dollars)
Year ended Year ended
December 31, December 31,
Note 2012 2011
Operating activities
Loss before income taxes $ (127,910) $ (86,932)
Adjustments to net loss for non-cash items
Depletion and depreciation 7 13,775 21,170
Impairment 7(e), 16 88,278 46,327
Loss on disposal of property, plant and
equipment 584 67
Refining contract amortization 16 1,350 1,530
Environmental expense - 409
Share-based payments 8(e)(f) 2,374 8,325
Interest income (3,407) (5,529)
Finance costs 9 5,619 1,549
Foreign exchange (gain) loss (741) 2,551
Allowance for bad debts 14(b) 89 528
Net changes in non-cash working capital items
Trade and other receivables 6,829 4,147
Inventories 2,830 (828)
Trade and other payables (10,111) 3,299
Cash used in operations (20,441) (3,387)
Adjustments to net loss for cash items
Interest income received 3,726 4,917
Finance costs paid (4,692) (243)
Taxes received 906 126
Taxes paid (363) -
Net operating cash flows (20,864) 1,413
Investing activities
Net maturity of short-term investments 40,835 137,999
Purchase of other assets (1,504) (5,387)
Property, plant and equipment expenditures (92,549) (87,048)
Disposal of property, plant and equipment 1,845 232
Acquisition related dividend refund received - 228
Net investing cash flows (51,373) 46,024
Financing activities
Acquisition of Lion's Head (10,000) -
Payment of finance leases (1,554) (1,205)
Net financing cash flows (11,554) (1,205)
Effect of exchange rate changes on cash
and cash equivalents 2,652 (2,240)
(Decrease) increase in cash and cash equivalents (81,139) 43,992
Cash and cash equivalents, beginning of year 151,838 107,846
Cash and cash equivalents, end of year $ 70,699 $ 151,838
Date: 14/03/2013 02:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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