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

Eastern Platinum Limited

March 23, 2011 18:00 ET

Eastern Platinum Reports Results for the Year Ended December 31, 2010

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 23, 2011) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited (TSX:ELR)(AIM:ELR)(JSE:EPS) ("Eastplats") is pleased to report financial results for the quarter and year ended December 31, 2010.

Summary of results for the quarter ended December 31, 2010 ("Q4 2010"):

  • Eastplats recorded a net profit attributable to equity shareholders of the Company of $5,041,000 ($0.01 basic earnings per share) in Q4 2010 compared to $330,000 ($0.00 per share) in the fourth quarter of 2009 ("Q4 2009").
  • EBITDA increased 52% to $15,226,000 in Q4 2010 compared to $10,008,000 in Q4 2009.
  • PGM ounces sold decreased 4% to 32,752 ounces in Q4 2010 compared to 34,000 ounces in Q4 2009.
  • The U.S. average delivered basket price per PGM ounce increased 23% to $1,058 in Q4 2010 compared to $860 in Q4 2009.
  • The Rand average delivered price per PGM ounce increased 13% to R7,311 in Q4 2010 compared to R6,450 in Q4 2009.
  • Rand operating cash costs net of by-product credits decreased 3% to R4,509 per ounce in Q4 2010 compared to R4,661 per ounce in Q4 2009. Rand operating cash costs increased 21% to R6,412 per ounce in Q4 2010 compared to R5,296 per ounce in Q4 2009.
  • U.S. dollar operating cash costs net of by-product credits increased 5% to $653 per ounce in Q4 2010 compared to $621 per ounce achieved in Q4 2009. U.S. dollar operating cash costs increased 31% to $928 per ounce in Q4 2010 compared to the $706 per ounce in Q4 2009.
  • Head grade decreased to 4.0 grams per tonne in Q4 2010 from 4.1 grams per tonne in Q4 2009.
  • Average concentrator recovery decreased to 78% in Q4 2010 compared to 79% in Q4 2009.
  • Off-reef development meters increased by 8% to 3,501 meters and on-reef development decreased by 10% to 1,925 meters compared to Q4 2009.
  • Stoping units decreased 4% to 53,044 square meters in Q4 2010 compared to 55,153 square meters in Q4 2009.
  • Run-of-mine ore hoisted increased by 1% to 324,879 tonnes in Q4 2010 compared to 321,393 tonnes in Q4 2009.
  • Run-of-mine ore processed increased by 2% to 327,872 tonnes in Q4 2010 compared to 321,983 tonnes in Q4 2009.
  • The Company's Lost Time Injury Frequency Rate (LTIFR) was 3.88 in Q4 2010 compared to 3.45 in Q4 2009.
  • At December 31, 2010, the Company had a cash position (including cash, cash equivalents and short term investments) of $350,292,000 (December 31, 2009 – $21,658,000).

Summary of results for the year ended December 31, 2010

  • Eastplats recorded a net profit attributable to equity shareholders of the Company of $13,352,000 ($0.02 per share) in 2010 compared to $5,650,000 ($0.01 per share) in 2009.
  • EBITDA increased 58% to $45,099,000 in 2010 compared to $28,526,000 in 2009.
  • PGM ounces sold increased 1% to 131,901 ounces in 2010 compared to 130,338 ounces in 2009.
  • The U.S. average delivered basket price per PGM ounce increased 38% to $995 in 2010 compared to $723 in 2009.
  • The Rand average delivered basket price per PGM ounce increased 21% to R7,264 in 2010 compared to R6,006 in 2009.
  • Rand operating cash costs net of by-product credits increased 11% to R4,800 per ounce in 2010 compared to R4,306 per ounce in 2009. Rand operating cash costs increased 15% to R6,099 per ounce in 2010 compared to R5,286 per ounce in 2009.
  • U.S. dollar operating cash costs net of by-product credits increased 26% to $657 per ounce in 2010 compared to $521 per ounce achieved in 2009. Operating cash costs increased 33% to $844 per ounce in 2010 compared to $636 per ounce in 2009.
  • Head grade remained consistent at 4.1 grams per tonne during both years.
  • Average concentrator recovery remained consistent at 79% during both years.
  • Off-reef development meters decreased by 15% to 12,814 meters and on-reef development decreased by 22% to 7,226 meters compared to 2009.
  • Stoping units increased by 10% to 206,269 square meters in 2010 compared to 187,856 square meters in 2009.
  • Run-of-mine ore hoisted increased by 5% to 1,288,416 tonnes in 2010 compared to 1,229,885 tonnes in 2009.
  • Run-of-mine ore processed increased by 3% to 1,265,973 tonnes in 2010 compared to 1,225,508 tonnes in 2009.

"We are confident that we can continue to increase production at CRM and we are progressing well with the development of the Crocette section. Also, with our recently completed financing, we are proceeding to bring our Eastern Limb projects to account as quickly as possible," 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 audited condensed consolidated financial statements and accompanying Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2010. These financial statements and MD&A, and the comparative financial statements for the year ended December 31, 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 Thursday, March 24, 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 Thursday, March 31, 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 – 908,041,254

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.

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

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