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SERVICES/
Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, Aug. 15, 2018 /CNW/ - Eastern Platinum Limited
("Eastplats" or the "Company") is pleased to report
that it has filed its Q2-2018 condensed interim consolidated
financial statements and management's discussion and analysis for
the three and six month periods ended June
30, 2018. Below is a summary of the Company's financial
results and highlights for Q2 2018 (all amounts in USD, except as
indicated in South African Rand ("ZAR")):
- cash inflow during the quarter of $0.9
million (ZAR 12.0 million) as
a construction loan from Union Goal Offshore Solution Limited
("Union Goal") in accordance with the UG Agreement (as
defined herein);
- cash and short-term investments of $18.4
million and working capital of $18.5
million as at June 30, 2018
available for completion of the Retreatment Project (as defined
herein) and other 2018 operations;
- capitalized and expended $8.3
million on the Chrome Circuit (as defined herein) and
related construction activities to further the Retreatment Project
(as defined herein) during Q2 2018;
- net loss of $4.2 million
(loss of $0.04 per share)
compared with $2.2 million (loss of
$0.02 per share) in the same period
of 2017; however, the loss included a foreign exchange loss of
$2.2 million in Q2 2018 compared to
$0.3 million in the same period of
2017; and
- net operating cash flows received during the quarter was
$3.4 million compared with
$1.6 million used during the same
period of 2017.
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 going
well and all significant items required for the Chrome Circuit
completion and commissioning are now at site and completion of the
form structures continues. The tailings facility is progressing
well and updated dam construction continues on schedule.
Construction is currently estimated to be completed before the end
of Q3 2018 immediately followed by commissioning. Eastplats
anticipates the Retreatment Project will result in revenue
producing operations through offtake of the chrome concentrates to
Union Goal during Q4 2018.
The Company has spent $6,475 to
June 30, 2018 on the project which is
almost 60% of the estimated costs before operations for Barplats
related to the Retreatment Project.
Operating Highlights and Outlook
Construction of the Retreatment Project remains the primary
focus of Eastplats since the UG Agreement was signed. Other
projects have been placed on hold and all appropriate resources
have been authorized and allocated for project completion.
Management is focused on continued progress based on the agreed
construction timetable for the chrome operations. Revenue-producing
operations are targeted for Q4 2018.
The Company has filed the following documents, all of which are
available under the Company's profile on SEDAR at
www.sedar.com:
- Condensed interim consolidated financial statements for the
three and six months ended June 30,
2018; and
- Management's discussion and analysis for the three and six
months ended June 30, 2018.
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 and completion of the Retreatment Project. 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