Eastern Platinum Limited
TSX : ELR
AIM : ELR
JSE : EPS

Eastern Platinum Limited

August 15, 2011 08:24 ET

Eastern Platinum Reports Results For the Three Months Ended June 30, 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 15, 2011) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") (TSX:ELR)(AIM:ELR)(JSE:EPS) is pleased to report financial results for the three months ended June 30, 2011.

Summary of results for the three months ended June 30, 2011 ("Q2 2011"):

  • Eastplats recorded a net loss attributable to equity shareholders of the Company of $7,951,000 ($0.01 loss per share) in the quarter ended June 30, 2011 compared to earnings of $3,448,000 ($0.01 per share) in the quarter ended June 30, 2010 ("Q2 2010").

  • EBITDA decreased to ($4,280,000) in Q2 2011 compared to $9,757,000 in Q2 2010.

  • PGM ounces sold decreased 33% to 20,528 ounces in Q2 2011 compared to 30,820 PGM ounces in Q2 2010.

  • The U.S. dollar average delivered price per PGM ounce increased 10% to $1,113 in Q2 2011 compared to $1,015 in Q2 2010.

  • The Rand average delivered price per PGM ounce decreased 1% to R7,557 in Q2 2011 compared to R7,643 in Q2 2010.

  • Rand operating cash costs net of by-product credits increased 67% to R8,119 per ounce in Q2 2011 compared to R4,866 per ounce in Q2 2010. Rand operating cash costs increased 55% to R10,287 per ounce in Q2 2011 compared to R6,639 per ounce in Q2 2010.

  • U.S. dollar operating cash costs net of by-product credits increased 85% to $1,196 per ounce in Q2 2011 compared to $646 per ounce achieved in Q2 2010. U.S. dollar operating cash costs increased 72% to $1,515 per ounce in Q2 2011 compared to $882 per ounce in Q2 2010.

  • Head grade decreased to 3.9 grams per tonne in Q2 2011 from 4.1 grams per tonne in Q2 2010.

  • Average concentrator recovery decreased to 76% in Q2 2011 compared to 80% in Q2 2010.

  • Development meters increased by 11% to 3,562 meters and on-reef development increased by 33% to 2,090 meters compared to Q2 2010.

  • Stoping units decreased 37% to 31,828 square meters in Q2 2011 compared to 50,573 square meters in Q2 2010.

  • Run-of-mine ore hoisted decreased by 32% to 203,166 tonnes in Q2 2011 compared to 297,186 tonnes in Q2 2010.

  • Run-of-mine ore processed decreased by 30% to 201,986 tonnes in Q2 2011 compared to 290,028 tonnes in Q2 2010.

  • The Company's Lost Time Injury Frequency Rate (LTIFR) improved to 0.63 in Q2 2011 compared to 2.78 in Q2 2010.

  • At June 30 2011, the Company had a cash position (including cash, cash equivalents and short term investments) of $327,773,000 (December 31, 2010 – $350,292,000).

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 June 30, 2011. These financial statements and MD&A, and the comparative unaudited condensed consolidated interim financial statements for the three months ended June 30, 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 Monday, August 15, 2011 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 Monday, August 22, 2011 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 – 908,187,807

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.

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

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