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

Eastern Platinum Limited

November 14, 2011 08:00 ET

Eastern Platinum Reports Results for the Three Months Ended September 30, 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2011) - Eastern Platinum Limited ("Eastplats") (TSX:ELR)(AIM:ELR)(JSE:EPS) reports financial results for the three months ended September 30, 2011.

Summary of results for the three months ended September 30, 2011 ("Q3 2011"):

  • Eastplats recorded earnings attributable to equity shareholders of the Company of $1,364,000 ($0.00 per share) in the quarter ended September 30, 2011 ("Q3 2011") compared to earnings of $4,039,000 ($0.01 per share) in the quarter ended September 30, 2010 ("Q3 2010").

  • EBITDA decreased to $2,912,000 in Q3 2011 compared to $11,120,000 in Q3 2010.

  • PGM ounces sold decreased 29% to 26,955 ounces in Q3 2011 compared to 37,798 PGM ounces in Q3 2010.

  • The U.S. dollar average delivered price per PGM ounce increased 14% to $1,088 in Q3 2011 compared to $953 in Q3 2010.

  • The Rand average delivered price per PGM ounce increased 12% to R7,768 in Q3 2011 compared to R6,966 in Q3 2010.

  • Total Rand operating cash costs increased 3% to R204 million in Q3 2011 compared to R197 million in Q3 2010.

  • Rand operating cash costs net of by-product credits increased 34% to R6,097 per ounce in Q3 2011 compared to R4,566 per ounce in Q3 2010. Rand operating cash costs increased 45% to R7,561 per ounce in Q3 2011 compared to R5,212 per ounce in Q3 2010.

  • U.S. dollar operating cash costs net of by-product credits increased 37% to $854 per ounce in Q3 2011 compared to $625 per ounce achieved in Q3 2010. U.S. dollar operating cash costs increased 49% to $1,059 per ounce in Q3 2011 compared to $713 per ounce in Q3 2010.

  • Head grade increased to 4.1 grams per tonne in Q3 2011 from 4.0 grams per tonne in Q3 2010.

  • Average concentrator recovery decreased to 78% in Q3 2011 compared to 81% in Q3 2010.

  • Development meters increased by 21% to 3,976 meters and on-reef development increased by 25% to 2,248 meters compared to Q3 2010.

  • Stoping units decreased 20% to 40,594 square meters in Q3 2011 compared to 50,892 square meters in Q3 2010.

  • Run-of-mine ore hoisted decreased by 27% to 265,889 tonnes in Q3 2011 compared to 362,042 tonnes in Q3 2010.

  • Run-of-mine ore processed decreased by 27% to 261,280 tonnes in Q3 2011 compared to 357,219 tonnes in Q3 2010.

  • The Company's Lost Time Injury Frequency Rate (LTIFR) improved to 1.66 in Q3 2011 compared to 4.66 in Q3 2010.

  • At September 30 2011, the Company had a cash position (including cash, cash equivalents and short term investments) of $267,164,000 (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 September 30, 2011. These financial statements and MD&A, and the comparative unaudited condensed consolidated interim financial statements for the three months ended September 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, November 14, 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, November 21, 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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