Eastern Platinum Limited: Final Results
07.03.2012 | Marketwire
Final AmendmentEASTERN 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
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Revenue $ 113,203 $ 155,000
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Cost of operations
Production costs 114,614 109,901
Depletion and depreciation 7 20,451 22,507
Impairment 7(e), 16 46,327 -
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181,392 132,408
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Mine operating (loss) earnings (68,189) 22,592
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Expenses
General and administrative 7(d) 11,847 12,117
Share-based payments 8(f)(g) 8,325 1,452
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20,172 13,569
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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)
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(Loss) profit before income taxes (86,932) 8,853
Income tax (expense) recovery 10 (56) 924
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Net (loss) profit for the year $ (86,988) $ 9,777
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Attributable to
Non-controlling interest 11 $ (10,443) $ (3,575)
Equity shareholders of the Company (76,545) 13,352
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Net (loss) profit for the year $ (86,988) $ 9,777
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(Loss) earnings per share
Basic 12 $ (0.08) $ 0.02
Diluted 12 $ (0.08) $ 0.02
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Weighted average number of common shares outstanding in
thousands
Basic 12 908,199 683,177
Diluted 12 908,199 694,839
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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
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Comprehensive (loss) income for the year $ (208,191) $ 80,894
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Attributable to
Non-controlling interest (10,711) (2,813)
Equity shareholders of the Company (197,480) 83,707
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Comprehensive (loss) income for the year $ (208,191) $ 80,894
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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
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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
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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
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$ 914,813 $ 1,126,975
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Liabilities
Current liabilities
Trade and other payables 18 $ 40,459 $ 27,009
Finance leases 19 1,675 3,211
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42,134 30,220
Non-current liabilities
Provision for environmental
rehabilitation 20 8,390 8,934
Deferred tax liabilities 10 33,520 46,642
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84,044 85,796
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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)
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Capital and reserves attributable to
equity shareholders of the Company 834,252 1,033,951
Non-controlling interest 11 (3,483) 7,228
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830,769 1,041,179
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$ 914,813 $ 1,126,975
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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
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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
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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 -
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Net operating cash flows 1,413 31,974
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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 -
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Net investing cash flows 46,024 (257,238)
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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)
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Net financing cash flows (1,205) 327,152
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Effect of exchange rate changes on
cash
and cash equivalents (2,240) (1,291)
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Increase in cash and cash equivalents 43,992 100,597
Cash and cash equivalents, beginning
of year 107,846 7,249
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Cash and cash equivalents, end of
year $ 151,838 $ 107,846
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See accompanying notes to the Audited consolidated financial statements.