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SERVICES/
Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, BC, June 4, 2020 /CNW/ - Eastern Platinum Limited
("Eastplats" or the "Company") is pleased to report
that it has filed its Q1 2020 condensed interim consolidated
financial statements and management's discussion and analysis for
the three month period ended March 31,
2020. Below is a summary of the Company's financial results
for Q1 2020 (all amounts in USD):
- Revenue increased to $14.2
million for Q1 2020 (Q1 2019 - $5.4
million) – 163% increase;
- Operating loss decreased to $1.2
million for Q1 2020 (Q1 2019 - $1.8
million);
- Net loss to equity shareholders of $8.2 million (loss of $0.09 per share) during Q1 2020 compared
with $0.8 million (loss of
$0.01 per share) in Q1 2019 – the
increase resulting from a $8.7
million change in foreign exchange losses due to a
significant devaluation in the South African Rand to the US$ as a
result of COVID-19;
- Strong financial position with cash of $8.3 million and net working capital (excluding
non-cash deferred revenue) of $8.1
million as at March 31, 2020;
and
- Net operating cash flows generated during Q1 2020 were
$7.6 million compared with
$3.7 million used during Q1
2019.
Operations Update
Barplats Mines (Pty) Ltd. ("Barplats"), a subsidiary of
Eastplats, now continues operation of its tailings retreatment
project located at the Crocodile River Mine (the "Retreatment
Project") following the South Africa COVID-19 lockdown.
Barplats operations were not producing for 18 days. Further, as a
result of the change in lockdown levels effective June 1, 2020, Barplats will recall construction
contractors in a phased return. Based on the appropriate
mobilization, construction activities are expected to begin in
relation to the tailings storage facility wall building and the
Retreatment Project optimization.
A summary of production during Q1 2020:
Average grade
Cr
concentrate
|
Tons of
Cr concentrate
|
38.56%
|
293,968
|
The Company remains committed to the Government of South Africa's direction to prevent the risk
of spread of COVID-19. Eastplats continues to update and monitor
its risk assessments and has adopted appropriate procedures,
consistent with government directives, to maintain a safe workplace
for its employees and the communities in which it operates.
The effects of COVID-19 are changing and evolving and the
Company cannot reasonably estimate at this time all the impacts of
COVID-19 or if new or unexpected changes to the lockdown levels
will be imposed by the Government of South Africa. All these issues could have
material adverse effects on the Company's business, liquidity and
cashflows.
Outlook
The Company is pleased to have its workforce returned and the
Retreatment Project in full operations.
The Company will update its forecasts for the year including the
timelines of the completion of the Retreatment Project optimization
project when there is less uncertainty. The effects of COVID-19 are
changing rapidly and could have material effects on the Company's
2020 outlook and its ability to attain targets.
The Company's targets for 2020 subject to capital availability
include:
- Completion of the optimization program for the Retreatment
Project;
- Maximize operating results of the Retreatment Project;
- Establishment and execution of the appropriate TSF phase II
capital works program;
- Commissioning and operation of the PGM scavenger plant;
- Assessment and decision regarding the larger scale PGM
production for the tailings resource;
- Assessment of re-opening the CRM Zandfontein underground
operations;
- Ensure appropriate care and maintenance on all resource
properties; and
- Assessment and decision regarding Mareesburg project.
The Company is actively looking at opportunities for its other
assets and properties 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 months ended March 31, 2020;
and
- Management's discussion and analysis for the three months ended
March 31, 2020.
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, without limitation,
forward-looking statements pertaining to: the 2020 targets and
objectives; the Company's ability to maintain a safe workplace for
its employees; the effects of the lockdown imposed by the
Government of South Africa; any
future measured taken by the Government of South Africa. 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