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

Eastern Platinum Limited

November 15, 2010 08:36 ET

Eastern Platinum Reports Results for the Three Months Ended September 30, 2010

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 15, 2010) - 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 and nine months ended September 30, 2010. 

Summary of results for the quarter ended September 30, 2010 ("Q3 2010"):

  • Eastplats recorded a net profit attributable to equity shareholders of the Company of $4,039,000 ($0.01 basic earnings per share) in Q3 2010 compared to $1,839,000 ($0.00 per share) in the third quarter of 2009 ("Q3 2009"). 

  • Revenue increased 39% to $38,073,000 in Q3 2010 compared to $27,635,000 in Q3 2009.

  • EBITDA increased 124% to $11,120,000 in Q3 2010 compared to $4,971,000 in Q3 2009.

  • During the quarter, the Company recorded a one-time adjustment to chrome revenues that resulted from a change to the timing of chrome revenue recognition. Under the previous method of chrome revenue recognition, the Company's revenues would have been $41,254,000, EBITDA would have been $12,195,000, and net profit attributable to equity shareholders of the Company would have been $4,979,000. (See below for more details.)

  • Stoping units increased 40% to 50,892 square meters in Q3 2010 compared to 36,263 square meters in Q3 2009.

  • Development meters increased by 14% to 3,299 meters and on-reef development increased by 15% to 1,797 meters compared to Q3 2009.

  • Run-of-mine ore hoisted increased by 48% to 362,042 tonnes in Q3 2010 compared to 244,959 tonnes in Q3 2009.

  • Run-of-mine ore processed increased by 27% to 357,219 tonnes in Q3 2010 compared to 280,777 tonnes in Q3 2009. 

  • Head grade decreased to 4.0 grams per tonne in Q3 2010 from 4.1 grams per tonne in Q3 2009.

  • Average concentrator recovery improved to 81% in Q3 2010 compared to 78% in Q3 2009.

  • PGM ounces sold increased 26% to a quarterly record of 37,798 ounces in Q3 2010 compared to 29,986 PGM ounces in Q3 2009.

  • The U.S. dollar average delivered basket price per PGM ounce increased 25% to $953 in Q3 2010 compared to $765 in Q3 2009. 

  • The Rand average delivered basket price per PGM ounce increased 17% to R6,966 in Q3 2010 compared to R5,967 in Q3 2009.

  • Rand operating cash costs net of by-product credits were R4,566 per ounce in Q3 2010, consistent with R4,548 per ounce in Q3 2009. Rand operating cash costs decreased 12% to R5,212 per ounce in Q3 2010 compared to R5,915 per ounce in Q3 2009.

  • U.S. dollar operating cash costs net of by-product credits increased 7% to $625 per ounce in Q3 2010 compared to $583 per ounce achieved in Q3 2009. U.S. dollar operating cash costs decreased 6% to $713 per ounce in Q3 2010 compared to the $758 per ounce in Q3 2009. 

  • The Company's Lost Time Injury Frequency Rate (LTIFR) was 4.66 in Q3 2010 compared to 1.69 in Q3 2009.

  • At September 30, 2010, the Company had a cash position (including cash, cash equivalents and short term investments) of $20,005,000 (December 31, 2009 – $21,658,000).

During the quarter, the Company reassessed the timing of its chrome revenue recognition and determined that it was more appropriate to recognize chrome revenues at the time the physical chrome crossed the ship's rail at the port of shipment. This resulted in the recording of chrome inventory of $2,201,000 at September 30, 2010 representing 45,752 tonnes of chrome in transit, and a corresponding one-time adjustment to chrome revenues as discussed above.

"Our record quarterly production is a result of our ongoing efforts to streamline operations at CRM. We look forward to further improvements, as well as production from Crocette which we expect to contribute ounces within the next 12 months. We also look forward to developing our Eastern Limb projects now that we have the necessary New Order Mining Rights, and have secured power and water supply," said Ian Rozier.

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 financial statements and accompanying Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2010. These financial statements and MD&A, and the comparative financial statements for the three and nine months ended September 30, 2009 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, November 15, 2010 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, November 22, 2010 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 – 683,179,000

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.

S&P TSX Composite Index

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

Contact Information