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Eastern Platinum Ltd (2)
Symbol C : ELR
Shares Issued 92,639,032
Close 2019-05-14 C$ 0.215
Recent Sedar Documents

Eastern Platinum loses $800,000 (U.S.) in Q1

2019-05-15 06:22 ET - News Release

Mr. Rowland Wallenius reports

EASTERN PLATINUM LIMITED REPORTS Q1 2019 RESULTS

Eastern Platinum Ltd. has filed its first quarter 2019 condensed interim consolidated financial statements and management's discussion and analysis for the three-month period ended March 31, 2019. Below is a summary of the company's financial results and highlights for the first quarter of 2019 (all amounts are in U.S. dollars, except as indicated in South African rand):

  • Revenue from the retreatment project $5.4-million;
  • Operating loss $1.8-million in Q1 2019 compared with $2.6-million in Q1 2018;
  • Net financing cash flow of $2.2-million (31.3 million South African rand) during Q1 2019 -- retreatment project construction loan from Union Goal (as defined below) in accordance to the framework agreement (as defined below);
  • Cash and short-term investments of $3.8-million and net working capital (excluding non-cash deferred revenue) of $5.7-million as at March 31, 2019;
  • Net operating cash flows used during Q1 2019 was $3.7-million compared with $1.7-million in Q1 2018;
  • Net loss to equity shareholders of $800,000 (loss of one cent per share) during Q1 2019 compared with $700,000 (loss of one cent per share) in Q1 2018 -- the increase resulting from a $400,000 change in foreign exchange losses.

Operations of the retreatment project

As previously disclosed, on March 1, 2018, the company entered into an agreement with Union Goal Offshore Solution Ltd. relating to the construction, remining and processing of the tailing resource and offtake of chrome concentrate from Barplats Mines Pty. Ltd. tailings facility located at the company's Crocodile River mine in South Africa (CRM).

The company is operating the retreatment project and during Q1 2019, reached 45 per cent of processing capacity. Based on the company's targets, the retreatment project is forecast to reach full capacity by July, 2019. During April, 2019, material from remining the tailings reached over 70 per cent of processing capacity. The company remains focused on ramping up throughput of tailings material.

   PRODUCTION DURING THE INITIAL OPERATION IN LATE 
      DECEMBER, 2018, TO THE END OF APRIL, 2019
  
Average grade Cr concentrate  Tons of Cr concentrate

38.6%                                        144,419               

The company began in April, 2019, the consideration and testing of a PGM (platinum group metals) recovery circuit in relation to the tailings resource in an effort to generate additional revenue. The company has numerous alternatives and is seeking the best possible path forward. Samples and testing from the new operating chrome plant will allow for the most accurate assessment. The company targets a decision in this regard during the third quarter of 2019.

Outlook

The company seeks to ensure the retreatment project is brought into full operations, which is estimated to occur in July, 2019. Once the retreatment project has reached full commercial production, the company will announce its production targets for the remainder of 2019. Based on early results the company believes that it will make a definitive decision with respect to PGMs by the end of Q3 2019.

The company's targets for 2019 remain:

  • Retreatment project ramp-up to full production in July, 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;
  • 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.

AGM and special meeting

On May 14, 2019, the company mailed its annual circular to shareholders. The annual general and special meeting is to be held June 13, 2019, at 10 a.m. local time in South Africa. The material is filed on SEDAR and available on the company's website.

The company has filed the following documents, under the company's profile on SEDAR:

  • Condensed interim consolidated financial statements for the three months ended March 31, 2019;
  • Management's discussion and analysis for the three months ended March 31, 2019;
  • 2019 company circular for voting at the annual general and special meeting.

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