Eastern Platinum Reports Increase in Mining Rate, Development, Production and Revenues
Eastern Platinum Limited has announced the financial results for the year ended June 30, 2007 and an overview of operations during the quarter ended June 30, 2007 (all amounts reported in $USD).
Eastplats is a growing platinum group metal (“PGM”) producer engaged in the acquisition, development and mining of PGM properties located in South Africa. All of the Company’s properties are situated on the western and eastern limbs of the Bushveld Complex, the geological environment that supports over 70% of the world’s PGM supply. The Company’s Nominated Adviser (“NOMAD”) in London is Canaccord Adams Limited and the Company’s Sponsor in Johannesburg is PSG Capital Limited.
Eastplats recorded annual revenue of $101 million for year ended June 30, 2007.
Highlights for the quarter include:
* Substantial progress made in the ongoing underground development of the Crocodile River Mine (“CRM”) which is integral in generating additional mineable reserves to support continued production build up at CRM;
* On-reef ore reserve development in the quarter increased significantly to 1,767 meters, up from 278 meters in the comparative period in 2006, an increase of 535%;
* Off-reef development in the quarter increased to 4,807 metres, up from 463 meters in the comparative period in 2006, an increase of 938%;
* The average monthly mining rate during increased to 81,400 tonnes per month up from 52,250 tonnes per month the comparative period in 2006, an increase of 56%;
* Production and sales of 25,111 ounces of PGM, up from 12,533 ounces for the comparative period in 2006, an increase of over a 100%;
* Operating cash costs of $702/ounce, up from $620/ounce for the comparative period in 2006 as a result of the dramatic increase in on-reef mine development that has occurred, much of which is expensed against operating costs;
* Revenues of $23.1 million, up from $12.6 million for the comparative period in 2006, an increase of 83%;
* On May 11, 2007, the Company closed an equity fund raising for gross proceeds of Cdn $201.2 million ($180.7 million);
* At June 30, 2007 the Company had a cash position (including temporary investments) of $204.5 million in cash and GIC’s. Currently, the full amount is invested in highly liquid, fully guaranteed, bank sponsored instruments. The Company is not exposed to financial instruments involving the US residential property markets or mortgages.
Significant Transactions
* On May 21, 2007, Company increased its direct and indirect interest in Barplats to 74% through the acquisition of the 5% outstanding Barplats shares.
* On May 11, 2007 the Company closed an equity fund raising for gross proceeds of over Cdn $200 million ($180.7 million).
* On June 12, 2007, the Company increased its direct and indirect interest in Barplats to 85% through the acquisition of 42.39% of the shares of Gubevu Consortium Investment Holdings (Proprietary) Limited, which holds 26% of the shares of Barplats.
Ian Rozier, the Company’s President and CEO, commented: "Results reported for 2007 year end and the last quarter 2007 continue to reflect the excellent progress being made at the CRM operations, particularly the enormous increase in underground mine development which has built a large reserve base that provides a strong foundation for the mine’s future success” stated Ian Rozier.
"The increased interest in Barplats to 85%, the excellent drilling and assay results from Spitzkop, our JSE listing, a very healthy treasury and the strong fundamentals of the PGM sector , are all extremely positive for the outlook of the Company’s future prospects,” he stated.
Related categories: Mining shares Platinum mining
