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Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, Nov. 14, 2018 /CNW/ - Eastern Platinum Limited ("Eastplats" or the "Company") is pleased to report that it has filed its Q3-2018 condensed interim consolidated financial statements and management's discussion and analysis for the three and nine month periods ended September 30, 2018. Below is a summary of the Company's financial results and highlights for Q3 2018 (all amounts in USD, except as indicated in South African Rand ("ZAR")):
- cash inflow during the quarter of $0.5 million (ZAR 6.5 million) as a construction loan from Union Goal Offshore Solution Limited ("Union Goal") in accordance with the UG Agreement (as defined herein);
- cash and short-term investments of $7.5 million and working capital of $9.0 million as at September 30, 2018 available for completion of the Retreatment Project (as defined herein) and other 2018 operations;
- capitalized and expended $15.7 million on the Chrome Circuit (as defined herein) and related construction activities to further the Retreatment Project (as defined herein) during Q3 2018;
- net loss of $3.0 million (loss of $0.03 per share) compared with $2.1 million (loss of $0.02 per share) in the same period of 2017; however, the loss included a foreign exchange loss of $1.2 million in Q3 2018 compared to $0.6 million in the same period of 2017; and
- net operating cash flows used during the quarter was $4.7 million compared with $2.4 million used during the same period of 2017.
Construction of the Retreatment Project
As previously disclosed, on March 1, 2018, the Company and its subsidiary Barplats Mines (Pty) Limited ("Barplats") entered into a framework agreement (the "UG Agreement") with Union Goal relating to construction, remining and processing of the tailings resource and offtake of chrome concentrate from Barplats' tailings facility (the "Retreatment Project") located at the Company's Crocodile River Mine in South Africa ("CRM"). During the quarter the Company continued to focus its resources and efforts to complete the construction phase of the Retreatment Project. The Company is now preparing for commissioning, production and active operations. Commissioning is estimated to begin shortly on the Retreatment Project. The Chrome plant water commissioning is scheduled to begin during November 2018 followed by the introduction of slurry into the Chrome plant. Ore production will ramp up during the start-up period in December 2018. The tailings infrastructure has been completed and is ready to deliver slurry to the Chrome plant and separately to accept tailings disposition as needed from the operations. As with all commissioning and start-ups, many uncertain and unknown issues can arise and the timing is uncertain. Eastplats anticipates the Retreatment Project will result in revenue producing operations through offtake of the chrome concentrates to Union Goal during Q4 2018.
The Company has spent $14,678 to September 30, 2018 with an estimated $3,853 remaining to complete the Retreatment Project and bring it into revenue generating operations.
Operating Highlights and Outlook
During 2018 the Company has focused on the construction of the Retreatment Project and is now about to commission the project. The Company and UG are focused to ensure the Retreatment Project is brought into full operations as quickly as is reasonable. Other projects have been placed on hold and all appropriate resources have been authorized and allocated to achieve revenue-producing operations as targeted in Q4 2018.
The Company has filed the following documents, all of which are available under the Company's profile on SEDAR at www.sedar.com:
- Transactional Agreements signed as part of the completion of the condition's precedent under the UG Agreement;
- Condensed interim consolidated financial statements for the three and nine months ended September 30, 2018; and
- Management's discussion and analysis for the three and nine months ended September 30, 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 Annual Information Form and Management's Discussion and Analysis which are available under the Company's profile on www.sedar.com.
In particular, this press release contains forward-looking statements pertaining to: estimated timing of construction and commissioning of the Retreatment Project, estimated timing of operations and revenue generation of the Retreatment Project, estimated capital requirements for the Retreatment Project and the timing and completion of the Retreatment Project. 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, commodity prices, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
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 to publicly 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
For further information: EASTERN PLATINUM LIMITED, Rowland Wallenius, Chief Financial Officer and Corporate Secretary, [email protected] (email), (604) 800-8200 (phone)