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Eastern Platinum Reports Results for the Three Months Ended September 30, 2012

Date : 11/14/2012 @ 6:30PM
Source : Marketwired
Stock : Eastern Platinum Limited (ELR)
Quote : 0.9  0.0 (0.00%) @ 1:30AM
Eastern Platinum share price Chart

Eastern Platinum Reports Results for the Three Months Ended September 30, 2012

Eastern Platinum (TSX:ELR)
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2 Years : From Aug 2012 to Aug 2014

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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 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contacts: 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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