TIDMELR
Eastern Platinum Reports Results for the Three Months Ended March 31, 2013 and Approves Advance Notice Policy
NEWS RELEASE TRANSMITTED BY MARKETWIRED
FOR: EASTERN PLATINUM LIMITED
TSX, AIM SYMBOL: ELR
JSE SYMBOL: EPS
May 15, 2013
Eastern Platinum Reports Results for the Three Months Ended March 31, 2013 and Approves Advance Notice Policy
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 15, 2013) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats" or the "Company) (TSX:ELR)(AIM:ELR)(JSE:EPS) reports financial results for the three months ended March 31, 2013.
Summary of results for the three months ended March 31, 2013 ("Q1 2013"):
/T/
=- Eastplats recorded a loss attributable to equity shareholders of the
Company of $10,365,000 ($0.01 loss per share) in the quarter ended March
31, 2013 ("Q1 2013") compared to a loss of $8,908,000 ($0.01 loss per
share) in the quarter ended March 31, 2012 ("Q1 2012").
=- Adjusted EBITDA was negative $4,611,000 in Q1 2013 compared to negative
$2,414,000 in Q1 2012.
=- PGM ounces sold decreased 54% to 11,224 ounces in Q1 2013 compared to
24,474 PGM ounces in Q1 2012.
=- The U.S. dollar average delivered price per PGM ounce decreased 1% to
$960 in Q1 2013 compared to $969 in Q1 2012.
=- The Rand average delivered price per PGM ounce increased 14% to R8,595
in Q1 2013 compared to R7,510 in Q1 2012.
=- Total Rand operating cash costs decreased 32% to R141 million in Q1 2013
compared to R208 million in Q1 2012.
=- Rand operating cash costs net of by-product credits increased 52% to
R11,644 per ounce in Q1 2013 compared to R7,670 per ounce in Q1 2012.
Rand operating cash costs increased 48% to R12,535 per ounce in Q1 2013
compared to R8,486 per ounce in Q1 2012.
=- U.S. dollar operating cash costs net of by-product credits increased 31%
to $1,301 per ounce in Q1 2013 compared to $990 per ounce achieved in Q1
2012. U.S. dollar operating cash costs increased 28% to $1,400 per ounce
in Q1 2013 compared to $1,095 per ounce in Q1 2012.
=- Head grade decreased 2% to 3.97 grams per tonne in Q1 2013 compared to
4.07 grams per tonne in Q1 2012.
=- Average concentrator recovery decreased to 74% in Q1 2013 compared to
77% in Q1 2012.
=- Development meters decreased by 60% to 1,243 meters and on-reef
development decreased by 72% to 484 meters compared to Q1 2012.
=- Stoping units decreased 60% to 16,011 square meters in Q1 2013 compared
to 39,857 square meters in Q1 2012.
=- Run-of-mine ore hoisted decreased 59% to 102,539 tonnes in Q1 2013
compared to 247,538 tonnes in Q1 2012.
=- Run-of-mine ore processed decreased by 57% to 101,981 tonnes in Q1 2013
compared to 235,354 tonnes in Q1 2012.
=- The Company's Lost Time Injury Frequency Rate (LTIFR) was 2.91 in Q1
2013 compared to 5.46 in Q1 2012.
=- At March 31, 2013, the Company had a cash position (including cash, cash
equivalents and short term investments) of $115,630,000 (December 31,
2012 - $130,925,000).
/T/
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 March 31, 2013. These financial statements and MD&A, and the comparative financial statements for the three months ended March 31, 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.
Advance Notice Policy
Eastern Platinum Limited's board of directors (the "Board of Directors") has approved an advance notice policy (the "Policy") effective May 13, 2013. The purpose of the Policy is to provide a clear framework for nominating directors of the Company which will facilitate an orderly and efficient process for nomination and election of directors at annual or special general meetings of shareholders. Among other things, the Policy fixes a deadline by which holders of record of common shares of the Company must submit director nominations to the Company prior to any annual or special general meeting of shareholders and sets forth the information that a shareholder must include in the notice to the Company for the notice to be in proper written form.
In the case of an annual general meeting of shareholders, notice to the Company must be made not less than 40 nor more than 75 days prior to the date of the annual general meeting; provided, however, that in the event that the annual general meeting is to be held on a date that is less than 50 days after the date on which the first public announcement of the date of the annual general meeting was made, notice may be made not later than the close of business on the 10th day following such public announcement.
In the case of a special general meeting of shareholders (which is not also an annual general meeting), notice to the Company must be made no later than the close of business on the 15th day following the day on which the first public announcement of the date of the special general meeting was made. The Policy provides that the Board of Directors may, in its sole discretion, waive any requirement of the Policy.
The Board of Directors intends to seek shareholder ratification of the Policy at Eastplats' next annual and special meeting, to be held on June 12, 2013.
The full text of the Policy is available on SEDAR at www.sedar.com.
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. 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.
-30-
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:
Andrew Chubb, Ross Allister
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
Please refer to the Company's unaudited condensed consolidated interim financial statements and notes thereto regarding the note references shown in the financial statements presented below.
Eastern Platinum Limited
Condensed consolidated interim statements of loss
(Expressed in thousands of U.S. dollars, except per share amounts - unaudited)
Three months ended
Note March 31,
2013 2012
(Note 3(c))
=---------------------------------------------------------------------------------------------------
Revenue 20(c) $ 13,342 $ 30,656
=---------------------------------------------------------------------------------------------------
Cost of operations
Production costs 17,953 33,070
Depletion and depreciation 5 2,222 4,323
Gain on disposal of property, plant
and equipment (270) -
=---------------------------------------------------------------------------------------------------
19,905 37,393
=---------------------------------------------------------------------------------------------------
Mine operating loss (6,563) (6,737)
=---------------------------------------------------------------------------------------------------
Expenses
General and administrative 5(d) 1,932 2,203
Share-based payments 6(d)(e) 3,090 2,317
=---------------------------------------------------------------------------------------------------
5,022 4,520
=---------------------------------------------------------------------------------------------------
Operating loss (11,585) (11,257)
Other income (expense)
Interest income 544 1,032
Finance costs 7 (262) (294)
Foreign exchange (loss) gain (1,818) 247
=---------------------------------------------------------------------------------------------------
Loss before income taxes (13,121) (10,272)
Income tax recovery (expense) 55 (2,837)
=---------------------------------------------------------------------------------------------------
Net loss for the period $ (13,066) $ (13,109)
=---------------------------------------------------------------------------------------------------
Attributable to
Non-controlling interest 8 $ (2,701) $ (4,201)
Equity shareholders of the Company (10,365) (8,908)
=---------------------------------------------------------------------------------------------------
Net loss for the period $ (13,066) $ (13,109)
=---------------------------------------------------------------------------------------------------
Loss per share
Basic 9 $ (0.01) $ (0.01)
Diluted 9 $ (0.01) $ (0.01)
=---------------------------------------------------------------------------------------------------
Weighted average number of common shares outstanding in thousands
Basic 9 927,805 927,499
Diluted 9 927,805 927,499
=---------------------------------------------------------------------------------------------------
Approved and authorized for issue by the Board on May 13, 2013.
"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
March 31,
2013 2012
=-------------------------------------------------------------------------------------------------------
Net loss for the period $ (13,066) $ (13,109)
Other comprehensive (loss) income
Items that may subsequently be reclassified to loss
or profit
Exchange differences on translating foreign
operations (46,771) 33,176
Exchange differences on translating non-
controlling interest 1,296 (285)
=-------------------------------------------------------------------------------------------------------
Comprehensive (loss) income for the period $ (58,541) $ 19,782
=-------------------------------------------------------------------------------------------------------
Attributable to
Non-controlling interest (1,405) (4,486)
Equity shareholders of the Company (57,136) 24,268
=-------------------------------------------------------------------------------------------------------
Comprehensive (loss) income for the period $ (58,541) $ 19,782
=-------------------------------------------------------------------------------------------------------
Eastern Platinum Limited
Condensed consolidated interim statements of financial position as at
March 31, 2013, December 31, 2012 and January 1, 2012
(Expressed in thousands of U.S. dollars - unaudited)
March 31, December 31, January 1,
2013 2012 2012
Note (Note 4(a)) (Note 4(a))
=---------------------------------------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents 10 $ 66,432 $ 70,699 $ 151,838
Short-term investments 49,198 60,226 98,963
Trade and other receivables 11 14,575 15,556 23,580
Inventories 12 4,440 4,746 7,989
=---------------------------------------------------------------------------------------------------------
134,645 151,227 282,370
Non-current assets
Property, plant and equipment 5 536,148 577,031 615,439
Refining contract 13 6,424 7,270 9,009
Other assets 14 8,906 9,062 7,995
=---------------------------------------------------------------------------------------------------------
$ 686,123 $ 744,590 $ 914,813
=---------------------------------------------------------------------------------------------------------
Liabilities
Current liabilities
Trade and other payables 15 $ 16,994 $ 17,879 $ 40,459
Finance leases - - 1,675
=---------------------------------------------------------------------------------------------------------
16,994 17,879 42,134
Non-current liabilities
Provision for environmental rehabilitation 16 11,364 12,066 8,390
Deferred tax liabilities 18,548 19,977 33,520
=---------------------------------------------------------------------------------------------------------
46,906 49,922 84,044
=---------------------------------------------------------------------------------------------------------
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) 12,081 8,991 34,391
Foreign currency translation reserve (175,539) (128,768) (103,479)
Deficit 4(a) (410,380) (400,015) (326,684)
=---------------------------------------------------------------------------------------------------------
Capital and reserves attributable to
equity shareholders of the Company 656,316 710,362 834,252
Non-controlling interest 8 (17,099) (15,694) (3,483)
=---------------------------------------------------------------------------------------------------------
639,217 694,668 830,769
=---------------------------------------------------------------------------------------------------------
$ 686,123 $ 744,590 $ 914,813
=---------------------------------------------------------------------------------------------------------
Condensed consolidated interim statements of cash flows
(Expressed in thousands of U.S. dollars - unaudited)
Three months ended
March 31, March 31,
Note 2013 2012
=-----------------------------------------------------------------------------------------
Operating activities
Loss before income taxes $ (13,121) $ (10,272)
Adjustments to net loss for non-cash items
Depletion and depreciation 5 2,285 4,388
Gain on disposal of property, plant and
equipment (270) -
Refining contract amortization 13 309 357
Share-based payments 6(d)(e) 3,090 2,317
Interest income (544) (1,032)
Finance costs 7 262 294
Foreign exchange loss (gain) 1,818 # (247)
Net changes in non-cash working capital items
Trade and other receivables 367 (5,653)
Inventories (52) (637)
Trade and other payables (52) 1,545
=-----------------------------------------------------------------------------------------
Cash used in operations (5,908) (8,940)
Adjustments to net loss for cash items
Interest income received 377 819
Finance costs paid (44) (38)
Taxes received 465 716
=-----------------------------------------------------------------------------------------
Net operating cash flows (5,110) (7,443)
=-----------------------------------------------------------------------------------------
Investing activities
Net maturity of short-term investments 9,855 (34,467)
Purchase of other assets (537) (334)
Property, plant and equipment expenditures (5,004) (22,623)
Disposal of property, plant and equipment 525 -
=-----------------------------------------------------------------------------------------
Net investing cash flows 4,839 (57,424)
=-----------------------------------------------------------------------------------------
Financing activities
Acquisition of Lion's Head - (10,000)
Payment of finance leases - (1,680)
=-----------------------------------------------------------------------------------------
Net financing cash flows - (11,680)
=-----------------------------------------------------------------------------------------
Effect of exchange rate changes on cash
and cash equivalents (3,996) 2,719
=-----------------------------------------------------------------------------------------
Decrease in cash and cash equivalents (4,267) (73,828)
Cash and cash equivalents, beginning of year 70,699 151,838
=-----------------------------------------------------------------------------------------
Cash and cash equivalents, end of period $ 66,432 $ 78,010
=-----------------------------------------------------------------------------------------
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Eastern Platinum Limited
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