Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats")
(TSX:ELR)(AIM:ELR)(JSE:EPS) reports financial results for the three months ended
September 30, 2012.
Summary of results for the three months ended September 30, 2012:
-- Eastplats recorded a loss attributable to equity shareholders of the
Company of $5,029,000 ($0.01 loss per share) in the quarter ended
September 30, 2012 ("Q3 2012") compared to earnings of $1,364,000 ($0.00
per share) in the quarter ended September 30, 2011 ("Q3 2011").
-- Adjusted EBITDA was negative $2,873,000 in Q3 2012 compared to
$2,912,000 in Q3 2011.
-- PGM ounces sold decreased 21% to 21,273 ounces in Q3 2012 compared to
26,955 PGM ounces in Q3 2011.
-- The U.S. dollar average delivered price per PGM ounce decreased 18% to
$896 in Q3 2012 compared to $1,088 in Q3 2011.
-- The Rand average delivered price per PGM ounce decreased 5% to R7,401 in
Q3 2012 compared to R7,768 in Q3 2011.
-- Total Rand operating cash costs decreased 8% to R188 million in Q3 2012
compared to R204 million in Q3 2011.
-- Rand operating cash costs net of by-product credits increased 34% to
R8,197 per ounce in Q3 2012 compared to R6,097 per ounce in Q3 2011.
Rand operating cash costs increased 17% to R8,830 per ounce in Q3 2012
compared to R7,561 per ounce in Q3 2011.
-- U.S. dollar operating cash costs net of by-product credits increased 16%
to $992 per ounce in Q3 2012 compared to $854 per ounce achieved in Q3
2011. U.S. dollar operating cash costs increased 1% to $1,069 per ounce
in Q3 2012 compared to $1,059 per ounce in Q3 2011.
-- Head grade in Q3 2012 was 4.08 grams per tonne, consistent with the head
grade in Q3 2011.
-- Average concentrator recovery decreased to 76% in Q3 2012 compared to
78% in Q3 2011.
-- Development meters decreased by 48% to 2,066 meters and on-reef
development decreased by 57% to 966 meters compared to Q3 2011.
-- Stoping units decreased 29% to 28,943 square meters in Q3 2012 compared
to 40,594 square meters in Q3 2011.
-- Run-of-mine ore hoisted decreased 22% to 206,176 tonnes in Q3 2012
compared to 265,889 tonnes in Q3 2011.
-- Run-of-mine ore processed decreased by 22% to 203,279 tonnes in Q3 2012
compared to 261,280 tonnes in Q3 2011.
-- The Company's Lost Time Injury Frequency Rate (LTIFR) was 0.63 in Q3
2012 compared to 1.66 in Q3 2011.
-- At September 30, 2012, the Company had a cash position (including cash,
cash equivalents and short term investments) of $135,594,000 (December
31, 2011 - $250,801,000).
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 unaudited
condensed consolidated interim financial statements and accompanying
Management's Discussion and Analysis ("MD&A") for the three months ended
September 30, 2012. These financial statements and MD&A, and the comparative
financial statements for the three months ended September 30, 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 Wednesday, November 14, 2012
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,
November 21, 2012 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
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
Condensed consolidated interim statements of loss
(Expressed in thousands of U.S. dollars - unaudited)
Three months ended Nine months ended
Note September 30, September 30,
2012 2011 2012 2011
----------------------------------------------------------------------------
Revenue $ 19,861 $ 31,453 $ 68,534 $ 94,031
----------------------------------------------------------------------------
Cost of operations
Production costs 22,734 28,541 78,420 88,987
Depletion and
depreciation 6 3,192 5,502 11,325 15,880
Impairment 6 - - 88,278 -
(Gain) loss on
disposal of
property, plant
and equipment (167) - 1,402 -
----------------------------------------------------------------------------
25,759 34,043 179,425 104,867
----------------------------------------------------------------------------
Mine operating loss (5,898) (2,590) (110,891) (10,836)
----------------------------------------------------------------------------
Expenses
General and
administrative 6(d) 1,987 2,546 6,682 8,573
Share-based
payments 7(e)(f) (31) 22 2,309 8,291
----------------------------------------------------------------------------
1,956 2,568 8,991 16,864
----------------------------------------------------------------------------
Operating loss (7,854) (5,158) (119,882) (27,700)
Other income
(expense)
Interest income 791 1,376 2,720 4,298
Finance costs 8 (281) (322) (5,380) (1,197)
Foreign exchange
(loss) gain (138) 3,108 64 4,785
----------------------------------------------------------------------------
Loss before income
taxes (7,482) (996) (122,478) (19,814)
Income tax (expense)
recovery (98) 447 12,377 1,040
----------------------------------------------------------------------------
Net loss for the
period $ (7,580) $ (549) $ (110,101) $ (18,774)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to
Non-controlling
interest 9 $ (2,551) $ (1,913) $ (10,490) $ (6,554)
Equity shareholders
of the Company (5,029) 1,364 (99,611) (12,220)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net loss for the
period $ (7,580) $ (549) $ (110,101) $ (18,774)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Loss per share
Basic 10 $ (0.01) $ 0.00 $ (0.11) $ (0.01)
Diluted 10 $ (0.01) $ 0.00 $ (0.11) $ (0.01)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted average number of common shares
outstanding in thousands
Basic 10 927,499 908,188 927,499 908,129
Diluted 10 927,499 916,706 927,499 908,129
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Approved and authorized for issue by the Board on November 13, 2012.
"David Cohen" "Robert Gayton"
--------------------------------- ---------------------------------
David Cohen, Director Robert Gayton, Director
Eastern Platinum Limited
Condensed consolidated interim statements of comprehensive loss
(Expressed in thousands of U.S. dollars - unaudited)
----------------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
2012 2011 2012 2011
----------------------------------------------------------------------------
Net loss for the period $ (7,580) $ (549) $ (110,101) $ (18,774)
Other comprehensive
income (loss)
Exchange differences on
translating foreign
operations (2,962) (133,229) (9,850) (133,701)
Exchange differences on
translating non-
controlling interest 218 (82) 509 (285)
----------------------------------------------------------------------------
Comprehensive loss for
the period $ (10,324) $ (133,860) $ (119,442) $ (152,760)
----------------------------------------------------------------------------
Attributable to
Non-controlling
interest (2,333) (1,995) (9,981) (6,839)
Equity shareholders of
the Company (7,991) (131,865) (109,461) (145,921)
----------------------------------------------------------------------------
Comprehensive loss for
the period $ (10,324) $ (133,860) $ (119,442) $ (152,760)
----------------------------------------------------------------------------
Eastern Platinum Limited
Condensed consolidated interim statements of financial position as at
September 30, 2012 and December 31, 2011
(Expressed in thousands of U.S. dollars - unaudited)
September 30, December 31,
Note 2012 2011
----------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents 11 $ 68,662 $ 151,838
Short-term investments 66,932 98,963
Trade and other receivables 12 30,322 23,580
Inventories 13 6,862 7,989
----------------------------------------------------------------------------
172,778 282,370
Non-current assets
Property, plant and equipment 6 576,853 615,439
Refining contract 14 7,778 9,009
Other assets 15 8,905 7,995
----------------------------------------------------------------------------
$ 766,314 $ 914,813
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities
Current liabilities
Trade and other payables 16 $ 23,656 $ 40,459
Finance leases - 1,675
----------------------------------------------------------------------------
23,656 42,134
Non-current liabilities
Provision for environmental
rehabilitation 17 8,695 8,390
Deferred tax liabilities 20,331 33,520
----------------------------------------------------------------------------
52,682 84,044
----------------------------------------------------------------------------
Equity
Issued capital 7 1,230,358 1,230,358
Treasury shares 7(c) (334) (334)
Equity-settled employee
benefits reserve 43,868 41,563
Foreign currency translation
reserve (113,329) (103,479)
Deficit (433,467) (333,856)
----------------------------------------------------------------------------
Capital and reserves
attributable to equity
shareholders of the Company 727,096 834,252
Non-controlling interest 9 (13,464) (3,483)
----------------------------------------------------------------------------
713,632 830,769
----------------------------------------------------------------------------
$ 766,314 $ 914,813
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Eastern Platinum Limited
Condensed consolidated interim statements of cash flows
(Expressed in thousands of U.S. dollars - unaudited)
Three months ended Nine months ended
September 30, September 30,
Note 2012 2011 2012 2011
----------------------------------------------------------------------------
Operating activities
Loss before income
taxes $ (7,482) $ (996) $ (122,478) $ (19,814)
Adjustments to net
loss for
non-cash items
Depletion and
depreciation 6 3,259 5,568 11,525 16,540
Impairment 6 - - 88,278 -
Refining contract
amortization 14 335 387 1,032 1,189
Share-based
payments 7(e)(f) (31) 22 2,309 8,291
(Gain) loss on
disposal of
property, plant
and equipment (167) - 1,402
Interest income (791) (1,376) (2,720) (4,298)
Finance costs 8 281 322 5,380 1,197
Foreign exchange
loss (gain) 138 (3,108) (64) (4,785)
Net changes in non-
cash
working capital
items
Trade and other
receivables (3,039) (7,736) (6,231) (195)
Inventories (402) (1,408) 920 (654)
Trade and other
payables (5,936) (1,994) (6,675) (1,638)
----------------------------------------------------------------------------
Cash used in
operations (13,835) (10,319) (27,322) (4,167)
Adjustments to net
loss
for cash items
Interest income
received 979 573 3,035 2,246
Finance costs paid (165) (3) (4,631) (198)
Net taxes received - 90 543 57
----------------------------------------------------------------------------
Net operating cash
flows (13,021) (9,659) (28,375) (2,062)
----------------------------------------------------------------------------
Investing activities
Acquisition of Lion's
Head 5 - - (10,000) -
Net receipt of short-
term investments 46,919 14,752 34,897 13,257
Purchase of other
assets (435) (175) (1,147) (5,170)
Property, plant and
equipment
expenditures (23,886) (27,765) (80,540) (61,281)
Disposal of property,
plant and equipment 218 - 772 -
----------------------------------------------------------------------------
Net investing cash
flows 22,816 (13,188) (56,018) (53,194)
----------------------------------------------------------------------------
Financing activities
Common shares issued
for cash
- exercise of stock
options - - - -
Payment of finance
leases - - (1,553) (648)
----------------------------------------------------------------------------
Net financing cash
flows - - (1,553) (648)
----------------------------------------------------------------------------
Effect of exchange
rate changes
on cash and cash
equivalents 1,470 (3,876) 2,770 (2,506)
----------------------------------------------------------------------------
Increase (decrease)
in cash and cash
equivalents 11,265 (26,723) (83,176) (58,410)
Cash and cash
equivalents,
beginning of period 57,397 76,159 151,838 107,846
----------------------------------------------------------------------------
Cash and cash
equivalents, end of
period $ 68,662 $ 49,436 $ 68,662 $ 49,436
----------------------------------------------------------------------------
----------------------------------------------------------------------------
FOR FURTHER INFORMATION PLEASE CONTACT:
Eastern Platinum Limited
Ian Rozier
President & C.E.O.
+1-604-685-6851
+1-604-685-6493 (FAX)
info@eastplats.com
www.eastplats.com
NOMAD:
Canaccord Genuity Securities Limited, London
Rob Collins
+44 (0) 207 523 8000
JSE SPONSOR:
PSG Capital (Pty) Limited
Johan Fourie
+27 21 887 9602
Email: johanf@psgcapital.com
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