/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
SERVICES/
Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, May 11, 2018 /CNW/ - Eastern Platinum Limited
("Eastplats" or the "Company") is pleased to report
that it has filed its Q1-2018 condensed interim consolidated
financial statements and management's discussion and analysis for
the three month period ended March 31,
2018. Below is a summary of the Company's financial results
and highlights for Q1 2018 (all amounts in USD, except as indicated
in South African Rand ("ZAR")):
- cash inflow of $3.6 million
(ZAR 42.2 million) as an upfront
payment from Union Goal Offshore Solution Limited ("Union
Goal") in accordance with the UG Agreement (as defined herein)
(See March 5, 2018 press
release);
- cash and short-term investments of $21.3
million and working capital of $25.6
million at March 31, 2018
available for completion of the Retreatment Project (as defined
herein) and other 2018 operations;
- capitalized and expended $29.5
million on the Chrome Circuit (as defined herein) and
related construction activities to further the Retreatment Project
(as defined herein) during Q1 2018;
- net loss of $1.2 million (loss of
$0.01 per share) compared with
$2.5 million (loss of $0.02 per share) in the same period of 2017, an
improvement of 52%; and
- net operating cash flows used during the quarter was
$1.4 million compared with
$2.3 million in the same period of
2017, an improvement of 39%.
Construction of the Retreatment Project
As previously disclosed, on March 1,
2018, the Company and its subsidiary Barplats Mines (Pty)
Limited ("Barplats") entered into a framework agreement (the
"UG Agreement") with Union Goal relating to construction,
mining and processing of the tailings resource and offtake of
chrome concentrate from Barplats' tailings facility (the
"Retreatment Project") located at the Company's Crocodile
River Mine in South Africa
("CRM"). Construction of the Retreatment Project is well
underway with the significant components of the chrome processing
circuit already imported and at site. Construction teams are well
advanced with the civil construction to build the structures for
the chrome processing circuit. Work is progressing well at the
tailings facility to relocate and move the ore for initial
production all within the existing facility. The Company has
completed a cost to complete exercise, after contracting almost 80%
of Phase 1, and updated the estimated capital requirements for
Barplats related to the Retreatment Project at ZAR 191.2 million ($16
million) which is a 16.6% increase over the initial
estimate. The schedule remains on track and the Company is
targeting Q3 for commissioning with revenue expected in the fall of
2018.
Operating Highlights and Outlook
Construction of the Retreatment Project has been the primary
focus of Eastplats since the UG Agreement was signed. Appropriate
resources have been authorized and allocated and management is very
pleased with the progress and remains optimistic of delivery on the
agreed construction timetable for the chrome operations with the
expectation of revenue-producing operations during Q3 2018.
The Company anticipates that its updated Platinum Group Metals
("PGM's") feasibility studies on its tailings resource at
CRM will be completed during the next few months.
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: estimated timing of construction and
commissioning of the Retreatment Project, estimated timing of
operations and revenue generation of the Retreatment Project,
estimated capital requirements for the Retreatment Project and the
timing, completion, and results of the updated PGM feasibility
study on the tailings resource at CRM. 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