Eastern Platinum Limited

LSE : ELR


May 14, 2014 12:30 ET

Eastern Platinum Limited Reports Financial Results for the Quarter Ended March 31, 2014 and Proposes Share Consolidation

FOR:  EASTERN PLATINUM LIMITED

TSX, AIM SYMBOL:  ELR
JSE SYMBOL:  EPS

May 14, 2014

Eastern Platinum Limited Reports Financial Results for the Quarter Ended March 31, 2014 and Proposes Share Consolidation

Summary of results for the quarter ended March 31, 2014:

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 14, 2014) - Eastern Platinum Limited (TSX:ELR)(AIM:ELR)(JSE:EPS)
("Eastplats" or the "Company") announces its financial results for the quarter ended March 31, 2014 (all monetary
figures are stated in U.S. dollars):

--  At March 31, 2014, the Company had a cash position of $87,046,000
    (December 31, 2013 - $92,960,000). The Company's cash position includes
    cash, cash equivalents and short-term investments held primarily in
    Canadian dollars, which was negatively impacted during the quarter as
    the Canadian dollar weakened by 3.8% against the U.S. dollar between
    December 31, 2013 and March 31, 2014.

--  Eastplats recorded a loss attributable to equity shareholders of the
    Company of $1,996,000 ($0.00 per share) in the three months ended March
    31, 2014 ("Q1 2014") compared to a loss of $10,966,000 ($0.01 loss per
    share) in the three months ended March 31, 2013 ("Q1 2013").

--  General and administrative costs decreased 57% from $1,698,000 in Q1
    2013 compared to $729,000 in Q1 2014.

--  In Q1 2014, Eastplats incurred care and maintenance costs of $2,862,000
    in aggregate at its Crocodile River Mine, which was placed on care and
    maintenance on August 1, 2013 and at its Eastern Limb project, which was
    placed on care and maintenance in the fourth quarter of 2012.

For complete details of financial results, please refer to the condensed consolidated interim financial statements and
accompanying Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2014. These financial
statements and MD&A, and the comparative financial statements for the three months ended March 31, 2013 are all
available on SEDAR at www.sedar.com and on the Company's website www.eastplats.com.

Share consolidation and subdivision

At the Company's annual general and special meeting scheduled to be held on June 12, 2014, shareholders will be asked to
consider and, if thought fit, to adopt a special resolution to:

(a)  consolidate (the "Consolidation") all of the issued and outstanding
     common shares of the Company (the "Pre-Consolidation Shares") on the
     basis of one (1) new common share (a "Consolidated Share") for each one
     thousand (1,000) Pre-Consolidation Shares;

(b)  purchase for cancellation all of the fractional shares held by any
     shareholder who holds less than one (1) Consolidated Share, by payment
     in cash; and

(c)  to subsequently subdivide or split (the "Subdivision") all of the
     Consolidated Shares on the basis of one hundred (100) new common shares
     (the "New Common Shares") for each whole Consolidated Share being
     subdivided.

As a result of the above, any shareholder holding less than 1,000 Pre-Consolidation Shares will be entitled to receive a
cash payment for equal to that number of Pre-Consolidated Shares multiplied by an amount equal to the average weighted
trading price of the Pre-Consolidated Shares on the TSX and the JSE, whichever is applicable, for the ten trading days
preceding the effective date of the Consolidation.

Upon the Consolidation and Subdivision being completed, the Company's transfer agent will, as soon as practicable, allow
shareholders to exchange their share certificates representing Pre-Consolidation Shares for a certificate representing
the appropriate number of New Common Shares.

It is currently envisaged that the New Common Shares will commence trading on the TSX and the JSE on or about June 27,
2014.

For complete details of the share consolidation and subdivision, please refer to the Company's management proxy circular
dated May 2, 2014 available on SEDAR at www.sedar.com and on the Company's website www.eastplats.com.

Total shares issued and outstanding - 928,187,807

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.
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, except per share amounts -
 unaudited)

                                                 Three months ended
                                               March 31,          March 31,
                                                    2014               2013
----------------------------------------------------------------------------
Revenue                                              $ -    $        13,342
----------------------------------------------------------------------------

Cost of operations
  Production costs                                     -             18,059
  Depletion and depreciation                           -              2,222
  Gain on disposal of property, plant
   and equipment                                    (143)              (270)
----------------------------------------------------------------------------
                                                    (143)            20,011
----------------------------------------------------------------------------
Mine operating earnings (loss)                       143             (6,669)
----------------------------------------------------------------------------

Expenses
  General and administrative                         729              1,698
  Care and maintenance                             2,862                386
  Care and maintenance depreciation and
   amortization                                      640                 63
  Share-based payments                                 9              3,090
----------------------------------------------------------------------------
                                                   4,240              5,237
----------------------------------------------------------------------------

Operating loss                                    (4,097)           (11,906)
Other income (expense)
  Interest income                                    527                544
  Other income                                       419                321
  Finance costs                                     (187)              (262)
  Foreign exchange gain (loss)                        25             (1,818)
----------------------------------------------------------------------------

Loss before income taxes                          (3,313)           (13,121)
Income tax (expense) recovery                       (118)                55
----------------------------------------------------------------------------
Net loss for the period                   $       (3,431)    $      (13,066)
----------------------------------------------------------------------------

Attributable to
  Non-controlling interest                $       (1,435)    $       (2,100)
  Equity shareholders of the Company              (1,996)           (10,966)
----------------------------------------------------------------------------
Net loss for the period                   $       (3,431)    $      (13,066)
----------------------------------------------------------------------------

Loss per share
  Basic                                   $        (0.00)    $        (0.01)
  Diluted                                 $        (0.00)    $        (0.01)
----------------------------------------------------------------------------

Weighted average number of common shares
 outstanding in thousands
  Basic                                          927,805            927,805
  Diluted                                        927,805            927,805
----------------------------------------------------------------------------

Approved and authorized for issue by the Board on May 12, 2014.

"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,         March 31,
                                                     2014              2013
----------------------------------------------------------------------------
Net loss for the period                    $       (3,431)   $      (13,066)
Other comprehensive loss
  Items that may subsequently be
   reclassified to loss or profit
    Exchange differences on translating
     foreign operations                            (4,387)          (46,370)
    Exchange differences on translating
     non-controlling interest                          39               907
----------------------------------------------------------------------------
Comprehensive loss for the period          $       (7,779)   $      (58,529)
----------------------------------------------------------------------------

Attributable to
  Non-controlling interest                         (1,396)           (1,193)
  Equity shareholders of the Company               (6,383)          (57,336)
----------------------------------------------------------------------------
Comprehensive loss for the period          $       (7,779)   $      (58,529)
----------------------------------------------------------------------------


Eastern Platinum Limited
Condensed consolidated interim statements of financial position as at
March 31, 2014 and December 31, 2013
(Expressed in thousands of U.S. dollars - unaudited)

                                                March 31,      December 31,
                                                     2014              2013
----------------------------------------------------------------------------

Assets
Current assets
  Cash and cash equivalents                $        6,414    $       14,489
  Short-term investments                           80,632            78,471
  Trade and other receivables                       3,550             3,608
  Inventories                                       2,767             2,777
----------------------------------------------------------------------------
                                                   93,363            99,345
Non-current assets
  Property, plant and equipment                   334,732           336,628
  Refining contract                                 1,827             2,095
  Other assets                                      9,607             9,180
----------------------------------------------------------------------------
                                           $      439,529    $      447,248
----------------------------------------------------------------------------

Liabilities
Current liabilities
  Trade and other payables                 $        5,985    $        6,086
----------------------------------------------------------------------------
                                                    5,985             6,086
Non-current liabilities
  Provision for environmental
   rehabilitation                                   9,582             9,414
  Deferred tax liabilities                         16,787            16,803
----------------------------------------------------------------------------
                                                   32,354            32,303
----------------------------------------------------------------------------

Equity
  Issued capital                                1,230,358         1,230,358
  Treasury shares                                    (204)             (204)
  Equity-settled employee benefits
   reserve                                          5,343             5,334
  Foreign currency translation reserve           (212,807)         (208,420)
  Deficit                                        (583,099)         (581,103)
----------------------------------------------------------------------------
  Capital and reserves attributable to
   equity shareholders of the Company             439,591           445,965
  Non-controlling interest                        (32,416)          (31,020)
----------------------------------------------------------------------------
                                                  407,175           414,945
----------------------------------------------------------------------------
                                           $      439,529    $      447,248
----------------------------------------------------------------------------


Eastern Platinum Limited
Condensed consolidated interim statements of cash flows
(Expressed in thousands of U.S. dollars - unaudited)

                                                 Three months ended
                                                March 31,         March 31,
                                                     2014              2013
----------------------------------------------------------------------------
Operating activities
Loss before income taxes                   $       (3,313)   $      (13,121)
Adjustments to net loss for non-cash
 items
  Depletion and depreciation                          386             2,285
  Gain on disposal of property, plant
   and equipment                                     (143)             (270)
  Refining contract amortization                      254               309
  Share-based payments                                  9             3,090
  Interest income                                    (527)             (544)
  Finance costs                                       187               262
  Foreign exchange (gain) loss                        (25)            1,818
  Environmental expense                                 -                 -
  Allowance for bad debts                               -                 -
Net changes in non-cash working capital
 items
  Trade and other receivables                         161               367
  Inventories                                           3               (52)
  Trade and other payables                            (74)              (52)
----------------------------------------------------------------------------
Cash used in operations                            (3,082)           (5,908)
Adjustments to net loss for cash items
  Interest income received                            383               377
  Finance costs paid                                    -               (44)
  Taxes received                                       21               465
----------------------------------------------------------------------------
Net operating cash flows                           (2,678)           (5,110)
----------------------------------------------------------------------------

Investing activities
  Net (purchase) maturity of short-term
   investments                                     (5,140)            9,855
  Increase in other assets                           (438)             (537)
  Property, plant and equipment
   expenditures                                       (72)           (5,004)
  Disposal of property, plant and
   equipment                                          783               525
----------------------------------------------------------------------------
Net investing cash flows                           (4,867)            4,839
----------------------------------------------------------------------------
Effect of exchange rate changes on cash
 and cash equivalents                                (530)           (3,996)
----------------------------------------------------------------------------
Decrease in cash and cash equivalents              (8,075)           (4,267)
Cash and cash equivalents, beginning of
 period                                            14,489            70,699
----------------------------------------------------------------------------
Cash and cash equivalents, end of period   $        6,414    $       66,432
----------------------------------------------------------------------------


-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

OR

NOMAD:
Neil Elliot, Damien Hackett
Canaccord Genuity Limited, London
+44 (0) 207 7523 8000

OR

JSE SPONSOR:
Johan Fourie
PSG Capital (Pty) Limited
+27 21 887 9602
johanf@psgcapital.com

Contact Information

  • Eastern Platinum Limited