/NOT FOR DISSEMINATION IN THE
UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/
Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, June 14, 2017 /CNW/ - Eastern Platinum
Limited ("Eastplats" or the "Company") is pleased to
report it has filed its audited consolidated financial statements,
management discussion and analysis and its annual information form
for the year ended December 31, 2016.
Further, it has also filed its condensed interim consolidated
financial statements and management discussion and analysis for the
3 months ended March 31, 2017. Below
is a summary of our financial results for those periods (all
amounts in USD).
ANNUAL 2016:
- Net loss for 2016 was $55.1
million (loss of $0.55 per
share) compared with $23.4 million
for 2015;
- Cash and short-term investments of $26.2
million and working capital of $27.5
million at December 31,
2016;
- We recorded recoveries on previously recorded impairment on
Crocodile River Mine ("CRM") and the Mareesburg project of
$5.6 million and $4.5 million, respectively;
- We recorded an impairment on Kennedy's Vale and the Spitzkop
project of $23.8 million and
$15.5 million,
respectively;
- An impairment was recorded with respect to the $13.4 million prepayment related to the
June 30, 2016, share purchase
agreements entered into by former management (the "BEE Buyout
Agreements"), described in our July 4,
2016 news release;
- We continue to actively manage CRM activities resulting in a
decrease in care and maintenance costs of 38% compared to
2015;
- We have realigned the Company's organizational structure to
reduce general and administration costs going forward, enabling
these funds to be available for future use on our mining
projects;
Q1-2017:
- Net loss for Q1-2017, $2.5
million (loss of $0.02 per
share) compared to $5.0 million for
the same period in 2016;
- Cash and short-term investments of $23.9
million and working capital of $25.2
million at March 31,
2017;
- Net operating cash flows used during the three months ended
March 31, 2017, $2.3 million;
- Development work during the quarter was $0.1 million.
Operating Highlights and Outlook
As a result of the various material agreements purportedly
entered into by former management, the board of directors and new
management has spent a considerable amount of time and resources in
dealing with the consequences and litigation relating to those
agreements and has been somewhat constrained in our ability to
effectively advance, adjust or modify our current strategic
direction during 2016 pending resolution of those matters. However,
we have implemented new operational initiatives, continued a review
of asset utilization, implemented updated governance initiatives
and will continue to plan and review our strategy. New management
is also planning to expand our shareholder and stakeholder
communication initiatives.
With respect to our principal project, the Company continued
care and maintenance with respect to the underground portion of CRM
but is actively looking at opportunities in other areas to utilize
the assets. Commencing in the third quarter of 2016, the
Company initiated a review of all of its South African projects
including options and possibilities to continue developing the
Eastern Limb Projects and the feasibility of restarting or
reworking areas of the CRM.
We also furthered specific review of options for re-mining the
tailings storage area at the CRM, including metallurgical and
mining test work and engineering design and refurbishing of the CRM
processing facility. The Company is also undertaking a study and
assessment of the Mareesburg open pit project including additional
infill drilling work. The Company will further this work during the
year enabling it to consider the viability of making operational
decisions with respect to those properties.
The Company recently concluded a further phase of its extensive
investigation into certain actions taken by former management and
others, in order to satisfy itself that the 2016 Audited
Consolidated Financial Statements and associated filings ("2016
Annual Filings") accurately reflect the financial position of the
Company. The investigation provided the Company with
sufficient information regarding the recording and disclosure of
these actions. New management obtained advice and has considered
the results of the investigation and considers it appropriate to
file its 2016 Annual Filings as presented. The Company will
seek further advice from its legal counsel and evaluate its options
and any action that may be appropriate.
Diana Hu, President and Chief
Executive Officer, stated, "Our strong and dedicated new management
and board is committed to the development and advancement of our
PGM projects in South Africa. With
the 2016 and Q1-2017 filings completed, we have turned a corner and
are all moving forward towards a renewed focus on our mining
projects. The experienced operations team is focused on these key,
2017 priorities and our corporate team is directed and targeted to
assist with advancing those initiatives."
The Company has today filed the following documents which are
available under the Company's profile on SEDAR at
www.sedar.com:
- Audited consolidated financial statements for the year ended
December 31, 2016;
- Management's discussion and analysis for the year ended
December 31, 2016;
- Annual Information Form at December 31,
2016;
- Condensed interim consolidated financial statements for the
three-month period ended March 31,
2017; and
- Management's discussion and analysis for the three-month period
ended March 31, 2017.
Status of temporary management cease trade order
The Company remains subject to the temporary management cease
trade order (the "MCTO") issued to the Company under National
Policy 12-203 ("NP 12-203") as discussed in our press release of
April 5, 2017. However, the Company
has applied to the British Columbia Securities Commission for the
revocation of the MCTO now that all late filings have been
completed.
Cautionary Statement Regarding Forward-Looking
Information
This press release contains "forward-looking statements" or
"forward-looking information" (collectively referred to herein as
"forward-looking statements") within the meaning of
applicable securities legislation. Such forward-looking
statements include, without limitation, forecasts, estimates,
expectations and objectives for future operations that are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond the control of the Company. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "will", "plan",
"intends", "may", "will", "could", "expects", "anticipates" and
similar expressions. Further disclosure of the risks and
uncertainties facing the Company and other forward-looking
statements are discussed in the Company's Annual Information Form
and Management's Discussion and Analysis which are available under
the Company's profile on www.sedar.com.
In particular, this press release contains forward-looking
statements pertaining to: potential changes to our mining projects
including re-mining, the results of infill drilling, restarting of
mining operations, the implications of the agreements entered into
by former management and the associated litigation, the results of
and any further action as a result of the investigations and the
removal of the MCTO. These forward-looking statements are based on
assumptions made by and information currently available to the
Company. Although management considers these assumptions to
be reasonable based on information currently available to it, they
may prove to be incorrect. By their very nature,
forward-looking statements involve inherent risks and uncertainties
and readers are cautioned not to place undue reliance on these
statements as a number of factors could cause actual results to
differ materially from the beliefs, plans, objectives,
expectations, estimates and intentions expressed in such
forward-looking statements. These factors include, but are
not limited to, commodity prices, economic conditions, currency
fluctuations, competition and regulations, legal proceedings and
risks related to operations in foreign countries.
The forward-looking statements in this press release are made as
of the date they are given and, except as required by applicable
securities laws, the Company disclaims any intention or obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information
contained herein.
SOURCE Eastern Platinum Limited