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Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, March 27, 2019 /CNW/ - Eastern Platinum Limited
("Eastplats" or the "Company") is pleased to report
that it has filed its Audited Consolidated Financial Statements for
the years ending December 31, 2018
and 2017 and the corresponding, Management's Discussion and
Analysis and Annual Information Form. Below is a summary of the
Company's financial results and highlights for the year ended
December 31, 2018 (all amounts in
USD):
- Capitalized $64.0 million in
respect to the Retreatment Project (as defined below) during
2018;
- The Retreatment Project began producing revenue in late
December 2018 – which is the first
reported revenue of the Company since 2013;
- Cash and short-term investments of $5.6
million and net working capital (excluding non-cash deferred
revenue) of $5.0 million as at
December 31, 2018 available for
2019;
- Cash inflow of $7.1 million
during 2018 – upfront payment and construction loan from Union Goal
(as defined below) in accordance to the Framework Agreement (as
defined below);
- Cash flows used during the year were $2.8 million compared with $7.8 million in 2017, a continued improvement
since 2016;
- Net loss to equity shareholders of $21.8 million (loss of $0.24 per share) compared with $7.4 million (loss of $0.08 per share) in 2017 – the increase resulting
from impairment (discussed below) and increased foreign exchange
loss; and
- Impairment of the CRM (as defined below) underground property
of $15.5 million based on the net
present value of the updated financial model using updated costs,
recoveries and long-term consensus metal prices at December 31, 2018.
Operations of the Retreatment Project
As previously disclosed, on March 1,
2018, the Company entered into an agreement (the
"Framework Agreement") with Union Goal Offshore Solution
Limited ("Union Goal") relating to the construction,
re-mining and processing of the tailing resource and offtake of
chrome concentrate from Barplats Mines (Pty) Limited tailings
facility (the "Retreatment Project") located at the
Company's Crocodile River Mine in South
Africa ("CRM").
Commissioning occurred in December
2018 and shortly thereafter operational ramp-up began with
the Company delivering feed from the re-mining of the tailings to
the chrome plant to produce chrome concentrate.
A summary of production during the initial operation in late
December 2018 to the end of
February 2019:
Average grade Cr
concentrate
|
Tons of Cr
concentrate
|
38.6%
|
46,786
|
The Company is focused on ramping-up throughput of tailings
material. The Company has estimated its ramp-up to near full
capacity during Q2 2019. The Retreatment Project at full capacity
is forecasted to generate mine operating cashflows from the offtake
of chrome concentrate of approximately $1
million per month for approximately 5 years.
During Q2 2019 Eastplats' will begin to test and assess the
platinum group metals ("PGM") recovery opportunity available as
part of the Retreatment Project.
Outlook
In 2018, the Company focused on the construction of the
Retreatment Project which is now generating revenue for the
Company. As discussed above further developing this revenue
generating operation is key for the Company.
The Company's other new opportunities were placed on hold in
2018 as Eastplats resources were allocated to achieve
revenue-producing operations at the Retreatment Project. The
Company's targets for 2019 include:
- Retreatment Project ramp-up to full production in Q2 2019;
- Assessment and decision regarding the PGM recoverability
opportunities in relation to the tailings resource;
- Finalize the Retreatment Project Chrome Circuit purchase in
accordance with the option under the Framework Agreement;
- Assessment and decision regarding Mareesburg project; and
- Assessment and discussions regarding the CRM Zandfontein
underground operations;
The Company is actively looking at opportunities for its other
assets and properties and exploring options to utilize or monetize
these assets.
Diana Hu, CEO of Eastern Platinum
commented, "Eastplats has made tremendous strides during 2018 to
start the Retreatment Project operations, generate revenue and
overall to revitalize the Company. Eastplats is targeting the
creation of shareholder value and our 2019 goals will further this
objective. The Eastplats team is driven to achieve further
successes in 2019."
The Company has filed the following documents, under the
Company's profile on SEDAR at www.sedar.com:
- Audited consolidated financial statements for the year ended
December 31, 2018 and 2017;
- Management's discussion and analysis for the year ended
December 31, 2018 and 2017; and
- Annual Information Form at December 31,
2018.
Cautionary Statement Regarding Forward-Looking
Information
This press release contains "forward-looking statements" or
"forward-looking information" (collectively referred to herein as
"forward-looking statements") within the meaning of
applicable securities legislation. Such forward-looking
statements include, without limitation, forecasts, estimates,
expectations and objectives for future operations that are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond the control of the Company. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "will", "plan",
"intends", "may", "will", "could", "expects", "anticipates" and
similar expressions. Further disclosure of the risks and
uncertainties facing the Company and other forward-looking
statements are discussed in the Company's most recent Annual
Information Form available under the Company's profile on
www.sedar.com.
In particular, this press release contains forward-looking
statements pertaining to: forecast of operational activity of the
Retreatment Project and the Company's ability to achieve
full-operational capacity at the Retreatment Project during Q2 2019
or at all; forecasted cashflows of the Retreatment Project; the
Company's ability to test and assess PGM recovery opportunities in
connection with the Retreatment Project; the Company's possible
decision regarding the option exercise in relation to the Framework
Agreement; or the Company's ability to assess and make decisions
with respect to its other assets. These forward-looking statements
are based on assumptions made by and information currently
available to the Company. Although management considers these
assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect. By their
very nature, forward-looking statements involve inherent risks and
uncertainties and readers are cautioned not to place undue reliance
on these statements as a number of factors could cause actual
results to differ materially from the beliefs, plans, objectives,
expectations, estimates and intentions expressed in such
forward-looking statements. These factors include, but are
not limited to, unanticipated problems that may arise in our
production processes, commodity prices, lower than expected grades
and quantities of resources, need for additional funding and
availability of such additional funding on acceptable terms,
economic conditions, currency fluctuations, competition and
regulations, legal proceedings and risks related to operations in
foreign countries.
All forward-looking statements in this press release are
expressly qualified in their entirety by this cautionary statement,
the "Cautionary Statement on Forward-Looking Information"
section contained in the Company's most recent Management's
Discussion and Analysis available under the Company's profile on
www.sedar.com. The forward-looking statements in this press
release are made as of the date they are given and, except as
required by applicable securities laws, the Company disclaims any
intention or obligation, and does not undertake, to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information
contained herein.
SOURCE Eastern Platinum Limited