VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 15, 2013) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats" or the "Company) (ELR.TO)(ELR.L)(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"):
- 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).
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.