Platinum junior Eastern Platinum (Eastplats) posted a profit for the third quarter, compared with a loss a year earlier, despite labour interruptions in July at the firm’s Crocodile River mine, in South Africa, and difficult exchange rate and metal pricing environments.

Eastplats earned $1,84-million in the third quarter, compared with a $10,89- million loss ago, an improvement from a $317 000 profit reported for the second quarter.

“We are pleased to report three consecutive quarters of profit in 2009 during what has been a very difficult period for the sector that has seen the global economic downturn, exchange rate and metal price volatility, and an industrial strike action at Crocodile River mine and throughout South Africa,” CEO Ian Rozier said.

“It goes without saying it’s been a very tough year,” he told analysts and investors on a conference call.

The company produced 29 986 platinum-group metal (PGM) ounces from Crocodile River in the third quarter, down just 2,5% compared with figures for the third quarter of 2008, despite the labour disruption.

In July, Eastplats announced that it had terminated the contracts of two contract mining companies working at its Crocodile River mine, after about 500 contract workers held an underground sit-in at the operation, which included some supervisors being held hostage.

As a result, operations were not only affected by the sit-in, but also suffered because of the need to train new workers, Rozier said.

In the third quarter, the company realised an average basket price per PGM ounce of $765/oz, 36% lower than in the corresponding period last year.

However, the average basket price was 13% higher than in the second quarter, which helped boost revenues 10% quarter-on- quarter, and also contributed to positive provisional price adjustments for the current quarter, and an increase in chrome production and sales, the company said.

Operating costs after by-product credits rose 12% year-on-year, to $583/oz, which Eastplats attributed to the industrial action in July, as well as higher wages (which rose 10%) and increased power costs (up 30%).

An 8% weakening of the US dollar also contributed to higher costs, incurred mainly in South African rands.

Eastplats ended the quarter with cash, cash equivalents and short-term investments of $22,91-million, compared with $21,92- million at the end of the second quarter.