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Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, Aug. 14, 2019 /CNW/ - Eastern Platinum Limited
("Eastplats" or the "Company") is pleased to report
that it has filed its Q2 2019 condensed interim consolidated
financial statements and management's discussion and analysis for
the three and six months ended June 30,
2019. Below is a summary of the Company's financial results
for Q2 2019 (all amounts in USD, except as indicated in South
African Rand ("ZAR")):
- Revenue from the Retreatment Project for six months ended
June 30, 2019 - $15.8 million;
- Operating loss (three-month period) decreased to $0.4 million in Q2 2019 compared to $2.3 million in Q2 2018;
- Net income (three-month period) of $0.4
million in Q2 2019 compared to net loss of $4.2 million in Q2 2018;
- Net working capital (excluding non-cash deferred revenue)
increased to $8.6 million as at
June 30, 2019; and
- Net loss (six months) to shareholders of $0.2 million (loss of $0.01 per share) during Q2 2019 compared to
$4.1 million (loss of $0.04 per share) in Q2 2018 – the change
primarily resulting from revenue generating operations from the
Retreatment Project (defined below).
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").
Operations began in December 2018
and the Retreatment Project is continuing production ramp-up and
achieved over 87% of capacity during Q2 2019.
A summary of production during the initial operation to the end
of July 2019:
Average grade Cr
concentrate
|
Tons of Cr
concentrate
|
38.6
|
263,912
|
In April 2019 the Company
commenced the evaluation and testing of a PGM recovery circuit
relating to the tailings resource and this testing continues in an
effort to generate additional revenue. The Company has numerous
alternatives and is seeking the best commercial path regarding the
recovery of PGM's. Samples and testing from the new operating
chrome plant will facilitate the most accurate assessment. The
Company targets a decision in this regard during Q3 2019.
Outlook
The Company seeks to ensure the Retreatment Project is brought
into full operations, which was estimated to occur in July 2019 but now expected to occur in Q3 2019.
Once achieved, the Company plans to announce its production targets
for the following year. The Company believes that it will make a
definitive decision with respect to PGM recovery by the end of Q3
2019.
The Company's targets for the remainder of 2019 include:
- Retreatment Project ramp-up to full production during Q3
2019;
- Assessment and decision regarding the PGM recoverability
opportunities in relation to the tailings resource;
- 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 exploring options to utilize or monetize these
assets.
The Company has filed the following documents, under the
Company's profile on SEDAR at www.sedar.com:
- Condensed interim consolidated financial statements for the
three and six months ended June 30,
2019; and
- Management's discussion and analysis for the three and six
months ended June 30, 2019.
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 Q3 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