Operating losses in Eastern Platinum (Eastplats) widened to $5.7 million (R105m) in the third quarter period to the end of September despite a decrease in finance costs and foreign exchange rate gains, although the company had a working capital deficit of $26.6m.
The company, which has a secondary listing on the JSE, saw its operating loss widen for the period from $3.6m recorded in the 2023 comparative same period.
Over the year to September 2024, Eastplats’ operating loss however lowered from $15.8m to $4.1m.
This translated to Eastplats’ net loss attributable to equity shareholders of $3.4m for the period compared to a net income attributable to equity shareholders of $3.1m for the same period in 2023.
“The decrease in Q3 2024 net income was largely attributable to lower chrome sales in the quarter offset by a decrease in finance costs and a foreign exchange gain in the period due to the strengthening of the South African Rand,” said Eastplats in a quarterly trading update released Friday.
Revenues in Eastplats for the quarter under review decreased by 49.5% to $11m. for the year to date period ending September 2024, revenues were 40.5% lower at $45.5m.
Mine operating income for the company also plunged 114.3% to a loss of $1m as gross margins declined to a -9.4%.
“We continue to ramp up tonnages at the Zandfontein underground section at the Crocodile River Mine to produce high grade PGM and metallurgical chrome concentrate. As we approach the end of 2024 and plan for 2025, we are focused on improving recoveries and operating efficiently,” said Wanjin Yang, CEO for Eastplats.
Eastplats derives its income from processing PGM and chrome concentrates at the Crocodile River Mine.
Over the quarter period to the end of September, Eastplats had a working capital deficit of $26.6m compared to $15.5m a year earlier. It also had short-term cash resources consisting of cash, cash equivalents and short-term investments of about $8.5m.
Despite the losses for the period, the company has continued with its tailings storage facility wall building program, utilizing waste rock and paddocking to raise the wall to facilitate continued depositing of reprocessed tailings.
Reprocessing of the Crocodile River Mine tailings is expected to be completed early next year. Eastplats began processing run-of-mine produced from the Zandfontein underground section at the Crocodile River Mine.
Up to 75 000 tons of run-of-mine had been blasted by the beginning of October. About 22 000 in run-of-ore mine had been processed in September.
Last month, Eastplats commissioned a platinum group metals (PGM) processing facility at its Crocodile River mine along South Africa’s Bushveld, transitioning the company from a tailings chrome recovery operation into a concentrate metal producer.
The facility produces PGM and chrome concentrates at a time the company was already anticipating production of platinum metals to be elevated this year.
The junior miner said in May this year that it was focusing on ramping up underground operations at Zandfontein while it weighed capital plans for re-opening full operations at the mine.
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