JOHANNESBURG (miningweekly.com) – TSX-, Aim- and JSE-listed Eastern Platinum (Eastplats) recorded a net profit of $5-million in the fourth quarter of 2010, up significantly from $330 000 recorded in the fourth quarter of 2009.

The Vancouver-based junior with mining interests in South Africa reported a considerably improved cash position of $350-million for the 2010 full-year, compared with $21-million recorded at the end of 2009, with net profit more than doubling to $13-million in 2010 against $5-million in 2009.

Earnings before interest, tax, depreciation and amortisation increased by 52% to $15-million in the fourth quarter, compared with $10-million in the comparable quarter of 2009, while it increased by 58% from $28-million in 2009 to $45-million in 2010.

President and CEO Ian Rozier said the company was confident it could continue to increase production at the Crocodile River Mine (CRM) and was progressing well with the development of the Crocette section, which was restarted in January after the price of platinum-group metals (PGMs) improved.

Eastplats previously reported that it produced 32 752 oz of PGMs at CRM in the fourth quarter, which is 13% less than its record third-quarter output.

“With our recently completed financing, we are proceeding to bring our Eastern Limb projects to account as quickly as possible,” he noted.

The company completed a C$348-million public offering in December, and received formal letters of commitment to underwrite a $100-million corporate debt facility through subsidiary Eastplats International in January.

It was also working on a debt facility, after which it would have about $450-million in cash, short-term investments and undrawn credit facilities available for the development of the Mareesburg openpit mine and the associated concentrator, the Crocette development, and general corporate purposes.

Eastplats said PGM ounces sold in the fourth quarter decreased by 4% to 32 752 oz compared to 34 000 oz in the comparable quarter of 2009, but increased by 1% to 131 901 oz from 130 338 oz for the full-year.

The US average delivered basket price a PGM ounce increased by 23% to $1 058 in the fourth quarter and by 38% to $995 for the full-year, while the rand average delivered price for a PGM ounce increased by 13% to R7 311 for the quarter and 21% to R7 264 for the full-year.

Rand operating cash costs net of by-product credits decreased by 3% to R4 509/oz in the fourth quarter, but the operating cash costs increased 21% to R6 412/oz, compared with R5 296/oz in the fourth quarter of 2009.

Full-year rand operating cash costs net of by-product credits increased by 11% to R4 800/oz and operating cash costs increased by 15% to R6 099/oz in 2010.

Dollar operating cash costs net of by-product credits increased by 5% to $653/oz and dollar operating cash costs increased by 31% to $928/oz in the fourth quarter, while dollar operating cash costs net of by-product credits increased by 26% to $657/oz for the full-year and operating cash costs increased 33% in 2010.

The company reported that head grade decreased to 4 g/t in the fourth quarter from 4,1 g/t in the comparable 2009 quarter, while it remained consistent at 4,1 g/t for the full-year.

Average concentrator recovery also remained consistent at 79% for the full-year, but decreased to 78% in the fourth quarter.

Eastplats’ run-of-mine ore processed increased by 2% to 327 872 t in the fourth quarter, compared with 321 983 t in the previous fourth quarter, and increased by 3% to 1,2-million tons for the full-year.
 

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