| Tue 6 Mar 2012, 15:10 | | EPS - Eastern Platinum Limited - Eastern Platinum reports results for the |
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EPS
EPS
EPS - Eastern Platinum Limited - Eastern Platinum reports results for the
quarter and year ended December 31, 2011
EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR ISIN: CA 2768551038
Share Code AIM: ELR ISIN: CA 2768551038
Share Code JSE: EPS ISIN: CA 2768551038
March 6, 2012
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
NEWS RELEASE
EASTERN PLATINUM REPORTS RESULTS
FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2011
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats")
reports financial results for the quarter and year ended December 31, 2011.
Summary of results for the quarter ended December 31, 2011 ("Q4 2011"):
- Eastplats recorded a loss attributable to equity shareholders of the
Company of $64,325,000 ($0.07 loss per share) in the quarter ended December
31, 2011 ("Q4 2011") compared to earnings of $5,041,000 ($0.01 per share) in
the quarter ended December 31, 2010 ("Q4 2010").
- During the quarter ended December 31, 2011, the Company determined that the
carrying value of CRM exceeded the expected net present value of its future
cash flows. This resulted in an impairment charge of $46,327,000, of which
$33,281,000 pertained to tangible assets owned, $11,796,000 pertained to
intangible mineral properties being depleted, and $1,250,000 pertained to the
refining contract.
- EBITDA decreased to negative $6,455,000 in Q4 2011 compared to $15,226,000
in Q4 2010.
-PGM ounces sold decreased 39% to 19,854 ounces in Q4 2011 compared to 32,752
PGM ounces in Q4 2010.
- The U.S. dollar average delivered price per PGM ounce decreased 12% to $931
in Q4 2011 compared to $1,058 in Q4 2010.
- The Rand average delivered price per PGM ounce increased 3% to R7,541 in Q4
2011 compared to R7,311 in Q4 2010.
- Total Rand operating cash costs decreased 1% to R208 million in Q4 2011
compared to R210 million in Q4 2010.
- Rand operating cash costs net of by-product credits increased 93% to R8,685
per ounce in Q4 2011 compared to R4,509 per ounce in Q4 2010. Rand operating
cash costs increased 63% to R10,455 per ounce in Q4 2011 compared to R6,412
per ounce in Q4 2010.
- U.S. dollar operating cash costs net of by-product credits increased 64% to
$1,072 per ounce in Q4 2011 compared to $653 per ounce achieved in Q4 2010.
U.S. dollar operating cash costs increased 39% to $1,291 per ounce in Q4 2011
compared to $928 per ounce in Q4 2010.
- Head grade increased to 4.1 grams per tonne in Q4 2011 from 4.0 grams per
tonne in Q4 2010.
- Average concentrator recovery decreased to 76% in Q4 2011 compared to 78%
in Q4 2010.
- Development meters decreased by 16% to 2,929 meters and on-reef development
decreased by 17% to 1,591 meters compared to Q4 2010.
- Stoping units decreased 40% to 31,767 square meters in Q4 2011 compared to
53,044 square meters in Q4 2010.
- Run-of-mine ore hoisted decreased by 38% to 200,919 tonnes in Q4 2011
compared to 324,879 tonnes in Q4 2010.
- Run-of-mine ore processed decreased by 41% to 194,532 tonnes in Q4 2011
compared to 327,872 tonnes in Q4 2010.
- The Company`s Lost Time Injury Frequency Rate (LTIFR) improved to 2.61 in
Q4 2011 compared to 3.88 in Q4 2010. However, as reported on November 7,
2011, a fatality occurred at CRM that resulted in a Section 54 Stop Work
Order being issued by the Department of Mineral Resources ("DMR").
- At December 31, 2011, the Company had a cash position (including cash, cash
equivalents and short term investments) of $250,801,000 (December 31, 2010 -
$350,292,000).
Summary of results for the year ended December 31, 2011
- Eastplats recorded a net loss attributable to equity shareholders of the
Company of $76,545,000 ($0.08 loss per share) in the year ended December 31,
2011 ("12M 2011") compared to earnings of $13,352,000 ($0.02 per share) in
the year ended December 31, 2010 ("12M 2010").
- In 2011, the Company determined that the carrying value of CRM exceeded the
expected net present value of its future cash flows. This resulted in an
impairment charge of $46,327,000, of which $33,281,000 pertained to tangible
assets owned, $11,796,000 pertained to intangible mineral properties being
depleted, and $1,250,000 pertained to the refining contract.
- EBITDA decreased to negative $1,411,000 in 12M 2011 compared to $45,099,000
in 12M 2010.
- PGM ounces sold decreased 30% to 92,724 ounces in 12M 2011 compared to
131,901 PGM ounces in 12M 2010.
- The U.S. dollar average delivered price per PGM ounce increased 8% to
$1,073 in 12M 2011 compared to $995 in 12M 2010.
- The Rand average delivered price per PGM ounce increased 6% to R7,726 in
12M 2011 compared to R7,264 in 12M 2010.
- Total Rand operating cash costs increased 3% to R828 million in 12M 2011
compared to R804 million in 12M 2010.
- Rand operating cash costs net of by-product credits increased 48% to R7,118
per ounce in 12M 2011 compared to R4,800 per ounce in 12M 2010. Rand
operating cash costs increased 46% to R8,929 per ounce in 12M 2011 compared
to R6,099 per ounce in 12M 2010.
- U.S. dollar operating cash costs net of by-product credits increased 50% to
$984 per ounce in 12M 2011 compared to $657 per ounce achieved in 12M 2010.
U.S. dollar operating cash costs increased 48% to $1,236 per ounce in 12M
2011 compared to $835 per ounce in 12M 2010.
- Head grade decreased to 4.0 grams per tonne in 12M 2011 from 4.1 grams per
tonne in 12M 2010.
- Average concentrator recovery decreased to 77% in 12M 2011 compared to 79%
in 12M 2010.
- Development meters increased by 15% to 14,686 meters and on-reef
development increased by 16% to 8,363 meters compared to 12M 2010.
- Stoping units decreased 28% to 148,863 square meters in 12M 2011 compared
to 206,269 square meters in 12M 2010.
- Run-of-mine ore hoisted decreased by 29% to 917,343 tonnes in 12M 2011
compared to 1,288,416 tonnes in 12M 2010.
- Run-of-mine ore processed decreased by 29% to 903,298 tonnes in 12M 2011
compared to 1,265,973 tonnes in 12M 2010.
- The Company`s LTIFR improved to 1.46 in 12M 2011 compared to 3.32 in 12M
2010. However, as reported on November 7, 2011, a fatality occurred at CRM
and resulted in a Section 54 Stop Work Order being issued by the DMR. This
came after 3.8 million fatality free shifts at the mine and was a major blow
to the Company`s efforts toward improvements in mine health and safety during
2011. The DMR`s lengthy investigation into the accident resulted in lost
production.
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 audited
condensed consolidated financial statements and accompanying Management`s
Discussion and Analysis ("MD&A") for the year ended December 31, 2011,
released simultaneously with this announcement. These financial statements
and MD&A, and the comparative financial statements for the year ended
December 31, 2010 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 Tuesday, March 6, 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 Tuesday, March
13, 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
December 31, 2011 financials to be attached here.
December 31, 2011 MD&A to be attached here
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:
Rob Collins/Bhavesh Patel
Canaccord Genuity Limited, London
Tel: +44 20 7050 6500
JSE SPONSOR:
Johan Fourie
PSG Capital (Pty) Limited
Email: johanf@psgcapital.com
Tel: +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: 06/03/2012 15:10:01 Produced by the JSE SENS Department.
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