Eastern Platinum Limited
LSE : ELR

March 07, 2012 02:00 ET

Final Results

March 7, 2012

Final Amendment

EASTERN PLATINUM REPORTS RESULTS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 7, 2012) - Mr. Ian Rozier, President and CEO of Eastern
Platinum Limited (TSX:ELR)(AIM:ELR)(JSE:EPS) ("Eastplats") reports financial results for the quarter and year
ended December 31, 2011.

Summary of results for the quarter ended December 31, 2011 ("Q4 2011"):

--  Eastplats recorded a loss attributable to equity shareholders of the
    Company of $64,325,000 ($0.07 loss per share) in the quarter ended
    December 31, 2011 ("Q4 2011") compared to earnings of $5,041,000 ($0.01
    per share) in the quarter ended December 31, 2010 ("Q4 2010").
--  During the quarter ended December 31, 2011, the Company determined that
    the carrying value of CRM exceeded the expected net present value of its
    future cash flows. This resulted in an impairment charge of $46,327,000,
    of which $33,281,000 pertained to tangible assets owned, $11,796,000
    pertained to intangible mineral properties being depleted, and
    $1,250,000 pertained to the refining contract.
--  EBITDA decreased to negative $6,455,000 in Q4 2011 compared to
    $15,226,000 in Q4 2010.
--  PGM ounces sold decreased 39% to 19,854 ounces in Q4 2011 compared to
    32,752 PGM ounces in Q4 2010.
--  The U.S. dollar average delivered price per PGM ounce decreased 12% to
    $931 in Q4 2011 compared to $1,058 in Q4 2010.
--  The Rand average delivered price per PGM ounce increased 3% to R7,541 in
    Q4 2011 compared to R7,311 in Q4 2010.
--  Total Rand operating cash costs decreased 1% to R208 million in Q4 2011
    compared to R210 million in Q4 2010.
--  Rand operating cash costs net of by-product credits increased 93% to
    R8,685 per ounce in Q4 2011 compared to R4,509 per ounce in Q4 2010.
    Rand operating cash costs increased 63% to R10,455 per ounce in Q4 2011
    compared to R6,412 per ounce in Q4 2010.
--  U.S. dollar operating cash costs net of by-product credits increased 64%
    to $1,072 per ounce in Q4 2011 compared to $653 per ounce achieved in Q4
    2010. U.S. dollar operating cash costs increased 39% to $1,291 per ounce
    in Q4 2011 compared to $928 per ounce in Q4 2010.
--  Head grade increased to 4.1 grams per tonne in Q4 2011 from 4.0 grams
    per tonne in Q4 2010.
--  Average concentrator recovery decreased to 76% in Q4 2011 compared to
    78% in Q4 2010.
--  Development meters decreased by 16% to 2,929 meters and on-reef
    development decreased by 17% to 1,591 meters compared to Q4 2010.
--  Stoping units decreased 40% to 31,767 square meters in Q4 2011 compared
    to 53,044 square meters in Q4 2010.
--  Run-of-mine ore hoisted decreased by 38% to 200,919 tonnes in Q4 2011
    compared to 324,879 tonnes in Q4 2010.
--  Run-of-mine ore processed decreased by 41% to 194,532 tonnes in Q4 2011
    compared to 327,872 tonnes in Q4 2010.
--  The Company's Lost Time Injury Frequency Rate (LTIFR) improved to 2.61
    in Q4 2011 compared to 3.88 in Q4 2010. However, as reported on November
    7, 2011, a fatality occurred at CRM that resulted in a Section 54 Stop
    Work Order being issued by the Department of Mineral Resources ("DMR").
--  At December 31, 2011, the Company had a cash position (including cash,
    cash equivalents and short term investments) of $250,801,000 (December
    31, 2010 - $350,292,000).

Summary of results for the year ended December 31, 2011

--  Eastplats recorded a net loss attributable to equity shareholders of the
    Company of $76,545,000 ($0.08 loss per share) in the year ended December
    31, 2011 ("12M 2011") compared to earnings of $13,352,000 ($0.02 per
    share) in the year ended December 31, 2010 ("12M 2010").
--  In 2011, the Company determined that the carrying value of CRM exceeded
    the expected net present value of its future cash flows. This resulted
    in an impairment charge of $46,327,000, of which $33,281,000 pertained
    to tangible assets owned, $11,796,000 pertained to intangible mineral
    properties being depleted, and $1,250,000 pertained to the refining
    contract.
--  EBITDA decreased to negative $1,411,000 in 12M 2011 compared to
    $45,099,000 in 12M 2010.
--  PGM ounces sold decreased 30% to 92,724 ounces in 12M 2011 compared to
    131,901 PGM ounces in 12M 2010.
--  The U.S. dollar average delivered price per PGM ounce increased 8% to
    $1,073 in 12M 2011 compared to $995 in 12M 2010.
--  The Rand average delivered price per PGM ounce increased 6% to R7,726 in
    12M 2011 compared to R7,264 in 12M 2010.
--  Total Rand operating cash costs increased 3% to R828 million in 12M 2011
    compared to R804 million in 12M 2010.
--  Rand operating cash costs net of by-product credits increased 48% to
    R7,118 per ounce in 12M 2011 compared to R4,800 per ounce in 12M 2010.
    Rand operating cash costs increased 46% to R8,929 per ounce in 12M 2011
    compared to R6,099 per ounce in 12M 2010.
--  U.S. dollar operating cash costs net of by-product credits increased 50%
    to $984 per ounce in 12M 2011 compared to $657 per ounce achieved in 12M
    2010. U.S. dollar operating cash costs increased 48% to $1,236 per ounce
    in 12M 2011 compared to $835 per ounce in 12M 2010.
--  Head grade decreased to 4.0 grams per tonne in 12M 2011 from 4.1 grams
    per tonne in 12M 2010.
--  Average concentrator recovery decreased to 77% in 12M 2011 compared to
    79% in 12M 2010.
--  Development meters increased by 15% to 14,686 meters and on-reef
    development increased by 16% to 8,363 meters compared to 12M 2010.
--  Stoping units decreased 28% to 148,863 square meters in 12M 2011
    compared to 206,269 square meters in 12M 2010.
--  Run-of-mine ore hoisted decreased by 29% to 917,343 tonnes in 12M 2011
    compared to 1,288,416 tonnes in 12M 2010.
--  Run-of-mine ore processed decreased by 29% to 903,298 tonnes in 12M 2011
    compared to 1,265,973 tonnes in 12M 2010.
--  The Company's LTIFR improved to 1.46 in 12M 2011 compared to 3.32 in 12M
    2010. However, as reported on November 7, 2011, a fatality occurred at
    CRM and resulted in a Section 54 Stop Work Order being issued by the
    DMR. This came after 3.8 million fatality free shifts at the mine and
    was a major blow to the Company's efforts toward improvements in mine
    health and safety during 2011. The DMR's lengthy investigation into the
    accident resulted in lost production.

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,
2011. These financial statements and MD&A, and the comparative financial statements for the year ended
December 31, 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 Tuesday, March 6, 2012 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 Tuesday, March 13, 2012 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 - 928,187,807

To view December 31, 2011 financials please click on the following link:
http://media3.marketwire.com/docs/Q4_Financials.pdf

To view December 31, 2011 MD&A please click on the following link:
http://media3.marketwire.com/docs/ELR-MDA-0306.pdf

For further information, please contact:

EASTERN PLATINUM LIMITED
Ian Rozier, President & C.E.O.
+1-604-685-6851 (tel)
+1-604-685-6493 (fax)
info@eastplats.com
www.eastplats.com

NOMAD:
Rob Collins/Bhavesh Patel
Canaccord Genuity Limited, London
Tel: +44 20 7050 6500

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

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. 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.

(Audited Financial Statements)

Eastern Platinum Limited
Consolidated income statements
(Expressed in thousands of U.S. dollars, except per share amounts)

                                                  Year ended      Year ended
                                         Note   December 31,    December 31,
                                                        2011            2010
----------------------------------------------------------------------------
Revenue                                            $ 113,203       $ 155,000
----------------------------------------------------------------------------

Cost of operations
 Production costs                                    114,614         109,901
 Depletion and depreciation                 7         20,451          22,507
 Impairment                          7(e), 16         46,327               -
----------------------------------------------------------------------------
                                                     181,392         132,408
----------------------------------------------------------------------------
Mine operating (loss) earnings                      (68,189)          22,592
----------------------------------------------------------------------------

Expenses
 General and administrative              7(d)         11,847          12,117
 Share-based payments                 8(f)(g)          8,325           1,452
----------------------------------------------------------------------------
                                                      20,172          13,569
----------------------------------------------------------------------------

Operating (loss) profit                             (88,361)           9,023
Other income (expense)
 Interest income                                       5,529           1,797
 Finance costs                              9        (1,549)         (1,807)
 Foreign exchange loss                               (2,551)           (160)
----------------------------------------------------------------------------

(Loss) profit before income taxes                   (86,932)           8,853
Income tax (expense) recovery              10           (56)             924
----------------------------------------------------------------------------
Net (loss) profit for the year                    $ (86,988)         $ 9,777
----------------------------------------------------------------------------

Attributable to
 Non-controlling interest                  11     $ (10,443)       $ (3,575)
 Equity shareholders of the Company                 (76,545)          13,352
----------------------------------------------------------------------------
Net (loss) profit for the year                    $ (86,988)         $ 9,777
----------------------------------------------------------------------------

(Loss) earnings per share
 Basic                                     12       $ (0.08)          $ 0.02
 Diluted                                   12       $ (0.08)          $ 0.02
----------------------------------------------------------------------------

Weighted average number of common shares outstanding in
 thousands
 Basic                                     12        908,199         683,177
 Diluted                                   12        908,199         694,839
----------------------------------------------------------------------------


Eastern Platinum Limited
Consolidated statements of comprehensive (loss) income
(Expressed in thousands of U.S. dollars)
----------------------------------------------------------------------------
                                                  Year ended      Year ended
                                                December 31,    December 31,
                                                        2011            2010
----------------------------------------------------------------------------
Net (loss) profit for the year                    $ (86,988)         $ 9,777
Other comprehensive (loss) income
 Exchange differences on translating foreign
  operations                                       (120,935)          70,355
 Exchange differences on translating non-
  controlling interest                                 (268)             762
----------------------------------------------------------------------------
Comprehensive (loss) income for the year         $ (208,191)        $ 80,894
----------------------------------------------------------------------------

Attributable to
 Non-controlling interest                           (10,711)         (2,813)
 Equity shareholders of the Company                (197,480)          83,707
----------------------------------------------------------------------------
Comprehensive (loss) income for the year         $ (208,191)        $ 80,894
----------------------------------------------------------------------------


Eastern Platinum Limited
Consolidated statements of financial position as at
December 31, 2011 and 2010
(Expressed in thousands of U.S. dollars)

                                                December 31,    December 31,
                                         Note           2011            2010
----------------------------------------------------------------------------

Assets
Current assets
 Cash and cash equivalents                 13      $ 151,838       $ 107,846
 Short-term investments                               98,963         242,446
 Trade and other receivables               14         23,580          33,787
 Inventories                               15          7,989           8,832
----------------------------------------------------------------------------
                                                     282,370         392,911

Non-current assets
 Property, plant and equipment              7        615,439         715,976
 Refining contract                         16          9,009          14,265
 Other assets                              17          7,995           3,823
----------------------------------------------------------------------------
                                                   $ 914,813     $ 1,126,975
----------------------------------------------------------------------------

Liabilities
Current liabilities
 Trade and other payables                  18       $ 40,459        $ 27,009
 Finance leases                            19          1,675           3,211
----------------------------------------------------------------------------
                                                      42,134          30,220

Non-current liabilities
 Provision for environmental
  rehabilitation                           20          8,390           8,934
 Deferred tax liabilities                  10         33,520          46,642
----------------------------------------------------------------------------
                                                      84,044          85,796
----------------------------------------------------------------------------

Equity
 Issued capital                             8      1,230,358       1,219,869
 Treasury shares                         8(g)          (334)               -
 Equity-settled employee benefits
  reserve                                             41,563          33,390
 Foreign currency translation reserve              (103,479)          17,456
 Deficit                                           (333,856)       (236,764)
----------------------------------------------------------------------------
 Capital and reserves attributable to
  equity shareholders of the Company                 834,252       1,033,951
 Non-controlling interest                  11        (3,483)           7,228
----------------------------------------------------------------------------
                                                     830,769       1,041,179
----------------------------------------------------------------------------
                                                   $ 914,813     $ 1,126,975
----------------------------------------------------------------------------

Approved and authorized for issue by the Board on March 5, 2012.

"David Cohen"                                "Robert Gayton"
-------------------------------------        -------------------------------
David Cohen, Director                        Robert Gayton, Director


Eastern Platinum Limited
Consolidated statements of cash flows
(Expressed in thousands of U.S. dollars)

                                                  Year ended      Year ended
                                                December 31,    December 31,
                                         Note           2011            2010
----------------------------------------------------------------------------

Operating activities
(Loss) profit before income taxes                 $ (86,932)         $ 8,853
Adjustments to net (loss) profit for
 non-cash items
 Impairment                          7(e), 16         46,327               -
 Depletion and depreciation                 7         21,170          22,507
 Refining contract amortization            16          1,530           1,513
 Environmental expense                                   409               -
 Loss on disposal of property,
  plant and equipment                                     67               -
 Share-based payments                 8(f)(g)          8,325           1,452
 Interest income                                     (5,529)         (1,797)
 Finance costs                              9          1,549           1,807
 Foreign exchange loss                                 2,551             160
 Allowance for bad debts                14(b)            528               -
Net changes in non-cash working
 capital items
 Trade and other receivables                           4,147         (2,318)
 Inventories                                           (828)         (3,040)
 Trade and other payables                              3,299           1,322
----------------------------------------------------------------------------
Cash (used in) generated from
 operations                                          (3,387)          30,459
Adjustments to net (loss) profit for
 cash items
 Interest income received                              4,917           1,767
 Finance costs paid                                    (243)           (252)
 Net taxes received                                      126               -
----------------------------------------------------------------------------
Net operating cash flows                               1,413          31,974
----------------------------------------------------------------------------

Investing activities
 Net maturity of short-term
  investments                                        137,999       (223,118)
 Purchase of other assets                            (5,387)         (1,129)
 Property, plant and equipment
  expenditures                                      (87,048)        (32,991)
 Disposal of property, plant and
  equipment                                              232               -
 Acquisition related dividend refund
  received                                               228               -
----------------------------------------------------------------------------
Net investing cash flows                              46,024       (257,238)
----------------------------------------------------------------------------

Financing activities
 Common shares issued for cash, net
  of share
  issue costs - public financing                           -         328,890
 Common shares issued for cash -
  exercise
  of stock options                                         -             423
 Payment of finance leases                           (1,205)         (2,161)
----------------------------------------------------------------------------
Net financing cash flows                             (1,205)         327,152
----------------------------------------------------------------------------

Effect of exchange rate changes on
 cash
 and cash equivalents                                (2,240)         (1,291)
----------------------------------------------------------------------------

Increase in cash and cash equivalents                 43,992         100,597
Cash and cash equivalents, beginning
 of year                                             107,846           7,249
----------------------------------------------------------------------------
Cash and cash equivalents, end of
 year                                              $ 151,838       $ 107,846
----------------------------------------------------------------------------

See accompanying notes to the Audited consolidated financial statements.

Contact Information

  • Eastern Platinum Limited