| Tue 31 Mar 2009, 15:40 | | EPS - Eastern Platinum Limited - Eastern Platinum Reports Results For The Year |
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EPS
EPS
EPS - Eastern Platinum Limited - Eastern Platinum Reports Results For The Year
Ended December 31, 2008
News Release
EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR & ISIN: CA2768551038
Share Code AIM: ELR & ISIN: CA2768551038
Share Code JSE: EPS & ISIN: CA2768551038
NEWS RELEASE
EASTERN PLATINUM REPORTS RESULTS FOR THE YEAR ENDED DECEMBER 31, 2008
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") is
pleased to report financial results for the year ended December 31, 2008.
Highlights for the quarter ended December 31, 2008 ("Q4 2008")
* Eastplats recorded a net loss of $5,742,000 ($0.01 loss per share) compared
to a net loss of $10,814,000 ($0.02 loss per share) in the fourth quarter
of 2007 ("Q4 2007").
* Production at the Crocodile River Mine ("CRM") increased by 9% to 29,015
PGM ounces, from 26,632 PGM ounces in Q4 2007.
* Negative provisional sales price adjustments of $16,698,000 were recorded
in the quarter, causing revenue from CRM to decrease to $356,000 compared
to reported revenue of $34,126,000 in Q4 2007.
* The average delivered basket price per PGM ounce was $550, a decrease of
58% compared to $1,305 in Q4 2007, and a decrease of 54% compared to $1,193
in the third quarter of 2008.
* EBITDA was negative $18,168,000 compared to $13,179,000 in Q4 2007.
* Operating cash costs net of by-product credits was $578 per ounce, an
improvement of 25% over the $774 per ounce in Q4 2007.
* Average recovery rates for the quarter improved to 76%, compared to 72% in
Q4 2007.
* Hard rock ore processed increased by 8% to 298,514 tonnes in Q4 2008 from
275,972 tonnes in Q4 2007.
* The Company acquired an additional direct and indirect 2.47% interest in
Barplats Investments Limited, the subsidiary that holds CRM and Kennedy`s
Vale.
* At December 31, 2008, the Company had a cash position (including cash, cash
equivalents and short term investments) of $61,063,000 (December 31, 2007 -
$189,856,000).
Highlights for the year ended December 31, 2008
* Eastplats recorded net earnings of $16,364,000 ($0.02 per share) compared
to a net loss of $26,836,000 ($0.04 loss per share) for the year ended
December 31, 2007.
* Production at the Crocodile River Mine ("CRM") increased by 9% to 117,909
PGM ounces, from 107,967 PGM ounces in 2007.
* Total provisional sales price adjustments were negative $25,162,000 for the
year.
* The average delivered basket price per PGM ounce was $1,204, an increase of
4% compared to $1,158 in 2007.
* EBITDA was $36,237,000 compared to $40,343,000 in 2007.
* Operating cash costs net of by-product credits were $622 per ounce, an
improvement of 11% over the $699 per ounce in 2007, as the chrome recovery
circuit became fully integrated in June 2008.
* Average recovery rates for the year improved to 76%, compared to 72% in
2007, following planned improvements to the concentrator circuit at the
Crocodile River Mine.
* Hard rock ore processed increased by 15% to 1,175,519 tonnes in 2008 from
1,025,293 tonnes in 2007.
* The Company achieved an average grade for 2008 of 4.01 grams per tonne, up
from 3.96 grams per tonne in 2007.
* During the year, the Company spent $143 million on capital expenditures
primarily at Crocodile River and at Spitzkop.
"In the current economic environment, our primary objective is to continue to
grow CRM production in a cash flow positive manner. We will continue to focus
on lowering our cost profile and preserving our cash balances, as well as
taking the appropriate steps necessary to position Eastplats to benefit
quickly when PGM prices improve", said Ian Rozier.
The qualified person having reviewed the operating disclosures presented in
this press release is Mr. Brian Montpellier, V.P. Project Development, P. Eng.
Financial Information
For complete details of financial results, please refer to the
unaudited consolidated financial statements and accompanying Management`s
Discussion and Analysis ("MD&A") for the year ended December 31, 2008. These
financial statements and MD&A, and the comparative financial statements for the
year ended December 31, 2007 are all available on SEDAR at www.sedar.com and on
the Company`s website www.eastplats.com.
Teleconference call details
Eastern Platinum Limited will host a telephone conference call on Tuesday,
March 31, 2009 at 10:00 am Pacific (1:00 pm Eastern) to discuss these results.
The conference call maybe 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 Tuesday, April 7,
2009 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 - 680,526,421
For further information, please contact:
EASTERN PLATINUM LIMITED
Ian Rozier, President & C.E.O.
+1-604-685-6851 (tel)
+1-604-685-6493 (fax)
info@eastplats.com
www.eastplats.com
NOMAD - Canaccord Adams Limited
Ryan Gaffney - Ryan.Gaffney@CanaccordAdams.com
+44 20 7050 6500
JSE SPONSOR - PSG Capital (Pty) Limited
Anje Gregory - anjeg@psgcapital.com
+27 21 887 9602
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
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.
Date: 31/03/2009 15:40:01 Produced by the JSE SENS Department.
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