Wrap Text
News release: Eastern Platinum reports results for the three months ended June 30, 2013
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
August 15, 2013
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
NEWS RELEASE
EASTERN PLATINUM REPORTS RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2013
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited (“Eastplats” or the
“Company) reports financial results for the three months ended June 30, 2013.
Summary of results for the three months ended June 30, 2013 (“Q2 2013”):
- An impairment charge of $147,787,000 was recorded against Crocodile River Mine
during the quarter.
- Eastplats recorded a loss attributable to equity shareholders of the Company of
$139,710,000 ($0.15 loss per share) in the quarter ended June 30, 2013 compared to a
loss of $86,421,000 ($0.09 loss per share) in the quarter ended June 30, 2012 (“Q2
2012”).
- Adjusted EBITDA was negative $8,116,000 in Q2 2013 compared to negative $4,599,000
in Q2 2012.
- PGM ounces sold decreased 41% to 15,474 ounces in Q2 2013 compared to 26,412 PGM
ounces in Q2 2012.
- The U.S. dollar average delivered price per PGM ounce decreased 1% to $890 in Q2
2013 compared to $902 in Q2 2012.
- The Rand average delivered price per PGM ounce increased 15% to R8,428 in Q2 2013
compared to R7,324 in Q2 2012.
- Total Rand operating cash costs decreased 14% to R202 million in Q2 2013 compared to
R235 million in Q2 2012.
- Total Rand operating cash costs included one-time retrenchment costs at CRM of
approximately R52 million ($5.5 million).
- Rand operating cash costs net of by-product credits increased 57% to R11,611 per ounce
in Q2 2013 compared to R7,390 per ounce in Q2 2012. Rand operating cash costs
increased 47% to R13,069 per ounce in Q2 2013 compared to R8,881 per ounce in Q2
2012.
- U.S. dollar operating cash costs net of by-product credits increased 35% to $1,226 per
ounce in Q2 2013 compared to $910 per ounce achieved in Q2 2012. U.S. dollar
operating cash costs increased 26% to $1,380 per ounce in Q2 2013 compared to $1,094
per ounce in Q2 2012.
- Excluding one-time retrenchment costs, operating cash costs reduced to R9,694 per ounce
($1,024 per ounce) and operating cash costs net of by-product credits reduced to R8,251
per ounce ($871 per ounce).
- The Company’s Lost Time Injury Frequency Rate (LTIFR) was 3.44 in Q2 2013
compared to 1.17 in Q2 2012.
- At June 30, 2013, the Company had a cash position (including cash, cash equivalents and
short term investments) of $104,763,000 (December 31, 2012 – $130,925,000).
For complete details of financial results, please refer to the unaudited condensed consolidated
interim financial statements and accompanying Management’s Discussion and Analysis
(“MD&A”) for the three months ended June 30, 2013. These financial statements and
MD&A, and the comparative financial statements for the three months ended June 30, 2012
are all available on SEDAR at www.sedar.com and on the Company’s website
www.eastplats.com.
The qualified person having reviewed the operating disclosures presented in this press release
is Mr. Brian Montpellier, P. Eng, V.P. Project Development.
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, 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. 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.
Eastern Platinum Limited
Condensed consolidated interim statements of loss
(Expressed in thousands of U.S. dollars, except per share amounts - unaudited)
Three months ended Six months ended
Note June 30, June 30,
2013 2012 2013 2012
(Note 3(b)) (Note 3(b))
(Note 3(c)) (Note 3(c))
Revenue 20(c) $ 16,561 $ 31,152 $ 29,903 $ 61,808
Cost of operations
Production costs 24,677 35,751 42,630 68,821
Depletion and depreciation 5 2,369 3,810 4,591 8,133
Impairment 5 & 13 147,787 88,278 147,787 88,278
(Gain) loss on disposal of
property, plant and equipment (311) 1,569 (581) 1,569
174,522 129,408 194,427 166,801
Mine operating loss (157,961) (98,256) (164,524) (104,993)
Expenses
General and administrative 5(d) 1,541 2,476 3,087 4,643
Care and maintenance 5(b)(c) 383 16 769 52
Share-based payments 6(d)(e) 52 23 3,142 2,340
1,976 2,515 6,998 7,035
Operating loss (159,937) (100,771) (171,522) (112,028)
Other income (expense)
Interest income 458 897 1,002 1,929
Finance costs 7 (235) (4,805) (497) (5,099)
Foreign exchange gain (loss) 1,425 (45) (393) 202
Loss before income taxes (158,289) (104,724) (171,410) (114,996)
Income tax (expense) recovery (252) 15,312 (197) 12,475
Net loss for the period $ (158,541) $ (89,412) $ (171,607) $ (102,521)
Attributable to
Non-controlling interest 3(b) & 8 $ (18,831) $ (2,991) $ (20,931) $ (6,474)
Equity shareholders of the
Company (139,710) (86,421) (150,676) (96,047)
Net loss for the period $ (158,541) $ (89,412) $ (171,607) $ (102,521)
Loss per share
Basic 9 $ (0.15) $ (0.09) $ (0.16) $ (0.10)
Diluted 9 $ (0.15) $ (0.09) $ (0.16) $ (0.10)
Weighted average number of common shares outstanding in thousands
Basic 9 927,805 927,499 927,805 927,499
Diluted 9 927,805 927,499 927,805 927,499
Approved and authorized for issue by the Board on August 12, 2013.
"David Cohen" "Robert Gayton"
Eastern Platinum Limited
Condensed consolidated interim statements of comprehensive loss
(Expressed in thousands of U.S. dollars - unaudited)
Three months ended Six months ended
June 30, June 30,
2013 2012 2013 2012
(Note 3(b)) (Note 3(b))
Net loss for the period $ (158,541) $ (89,412) $ (171,607) $ (102,521)
Other comprehensive (loss) income
Items that may subsequently be
reclassified to loss or profit
Exchange differences on translating
foreign operations (36,787) (39,836) (83,157) (6,814)
Exchange differences on translating
non-controlling interest 1,684 359 2,591 219
Comprehensive loss for the period $ (193,644) $ (128,889) $ (252,173) $ (109,116)
Attributable to
Non-controlling interest (17,147) (2,632) (18,340) (6,255)
Equity shareholders of the Company (176,497) (126,257) (233,833) (102,861)
Comprehensive loss for the period $ (193,644) $ (128,889) $ (252,173) $ (109,116)
Eastern Platinum Limited
Condensed consolidated interim statements of financial position as at
June 30, 2013, December 31, 2012 and January 1, 2012
(Expressed in thousands of U.S. dollars - unaudited)
June 30, December 31, January 1,
2013 2012 2012
Note (Notes 3(b) & 4(a))
Assets
Current assets
Cash and cash equivalents 10 $ 46,781 $ 70,699 $ 151,838
Short-term investments 57,982 60,226 98,963
Trade and other receivables 11 & 3(b) 12,805 14,854 22,842
Inventories 12 3,041 4,746 7,989
120,609 150,525 281,632
Non-current assets
Property, plant and equipment 5 360,255 577,031 615,439
Refining contract 13 2,785 7,270 9,009
Other assets 14 8,716 9,062 7,995
$ 492,365 $ 743,888 $ 914,075
Liabilities
Current liabilities
Trade and other payables 15 & 3(b) $ 18,640 $ 17,387 $ 39,945
Finance leases - - 1,675
18,640 17,387 41,620
Non-current liabilities
Provision for environmental
rehabilitation 16 10,739 12,066 8,390
Deferred tax liabilities 17,559 19,977 33,520
46,938 49,430 83,530
Equity
Issued capital 6 1,230,358 1,230,358 1,230,358
Treasury shares 6(c)(e) (204) (204) (334)
Equity-settled employee
benefits reserve 4(a) 11,896 8,991 34,391
Foreign currency
translation reserve 3(b) (185,320) (102,163) (77,142)
Deficit 3(b) & 4(a) (581,553) (431,114) (355,028)
Capital and reserves
attributable to
equity shareholders
of the Company 475,177 705,868 832,245
Non-controlling interest 8 (29,750) (11,410) (1,700)
445,427 694,458 830,545
$ 492,365 $ 743,888 $ 914,075
Eastern Platinum Limited
Condensed consolidated interim statements of cash flows
(Expressed in thousands of U.S. dollars - unaudited)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
Note 2013 2012 2013 2012
Operating activities
Loss before income taxes $ (158,289) $ (104,724) $ (171,410) $ (114,996)
Adjustments to net loss for
non-cash items
Depletion and depreciation 5 2,414 3,878 4,699 8,266
Impairment 5 & 13 147,787 88,278 147,787 88,278
(Gain) loss on disposal of
property, plant and equipment (311) 1,569 (581) 1,569
Refining contract amortization 13 291 340 600 697
Share-based payments 6(d)(e) 52 23 3,142 2,340
Interest income (458) (897) (1,002) (1,929)
Finance costs 7 235 4,805 497 5,099
Foreign exchange (gain) loss (1,425) 45 393 (202)
Net changes in non-cash
working capital items
Trade and other receivables (61) 2,461 306 (3,192)
Inventories 1,128 1,959 1,076 1,322
Trade and other payables 3,072 (2,284) 3,020 (739)
Cash used in operations (5,565) (4,547) (11,473) (13,487)
Adjustments to net loss
for cash items
Interest income received 612 1,237 989 2,056
Finance costs paid (50) (4,428) (94) (4,466)
Taxes received (paid) 427 (173) 892 543
Net operating cash flows (4,576) (7,911) (9,686) (15,354)
Investing activities
Net maturity of short-term
investments (10,747) 22,445 (892) (12,022)
Purchase of other assets (467) (378) (1,004) (712)
Property, plant and
equipment expenditures (3,917) (34,031) (8,921) (56,654)
Disposal of property, plant
and equipment 543 554 1,068 554
Net investing cash flows (14,588) (11,410) (9,749) (68,834)
Financing activities
Acquisition of Lion's Head - - - (10,000)
Payment of finance leases - 127 - (1,553)
Net financing cash flows - 127 - (11,553)
Effect of exchange rate
changes on cash and
cash equivalents (487) (1,419) (4,483) 1,300
Decrease in cash and
cash equivalents (19,651) (20,613) (23,918) (94,441)
Cash and cash equivalents,
beginning of period 66,432 78,010 70,699 151,838
Cash and cash equivalents,
end of period $ 46,781 $ 57,397 $ 46,781 $ 57,397
Date: 15/08/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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