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Eastplats lifts second-quarter revenue on increased re-mining and tailings processing

13th August 2021

By: Donna Slater

Features Deputy Editor and Chief Photographer

     

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JSE-listed platinum group metals (PGMs) and chrome miner Eastern Platinum (Eastplats) reports that its second-quarter revenue increased by 115% year-on-year to about $20-million, while its revenue for the first half of the year increased by 56% to $36.7-million for the half-year ended June 30.

The miner’s income from mining operations increased by a gross margin of 17% year-on-year to $3.3-million in the second quarter; while income for the half-year increased by a gross margin of 13% year-on-year to $4.8-million.

Eastplats’ operating income for the quarter under review was $700 000, which compares with an operating loss of $1-million reported for the second quarter of 2020.

For the first six months of the year, the miner’s operating loss decreased by $1.2-million in the second quarter of 2020, to $1-million, thereby coming down from $2.2-million in the corresponding period of 2020.

Also, for the first six months of this year, Eastplats’ operating loss narrowed by 54%, from $2.2-million in the first half of 2020, to $1-million.

The miner’s net income attributable to shareholders increased to $4.1-million, representing earnings a share of $0.03, which compares with a loss of $3-million in the second quarter of 2020, which resulted in a loss attributable to shareholders of $0.03.

In a statement, Eastplats notes that the improvement during the second quarter of this year is primarily attributable to the increased revenue and positive gross margins generated by re-mining and processing its tailings resource at the Crocodile River Mine (CRM) to produce chrome concentrate and PGMs concentrate.

Eastplats’ second-quarter improvement is also the result of an increase in the foreign exchange gain as the rand recovered against the dollar, and a gain of $3.3-million to settle and dismiss certain outstanding lawsuits.

For the first half of the year, Eastplats’ net income attributable to shareholders increased to $3.3-million, representing earnings attributable to shareholders of $0.02 apiece. This compares against the loss of $11.2-million, representing a loss attributable to shareholders of $0.12 apiece for the first half of 2020.

As a result, the miner’s positive working capital (current assets less current liabilities), as at June 30, was $14.7-million, which is up from the $4.1-million held at December 31, 2020.

OPERATIONS

Eastplats notes that it is continuing with its retreatment project at Barplats Mines’ tailings facility, which is located at the CRM operation.

The miner’s average grade of chrome production in the second quarter remained constant year-on-year, at 38.5%, while its chrome concentrate production increased from 214 994 t, to 223 487 t.

Eastplats president and CEO Diana Hu says the company continues its positive revenue growth and profitability through the retreatment project, increasing PGMs capacity, including through the PGM main circuit, which is expected to be commissioned in the near future.

This is being undertaken in conjunction with the development of Eastplats’ other projects on the eastern limb of the Bushveld Complex, she says.

Going forward, the company plans to continue operating its retreatment project efficiently, while also reconfiguring, enhancing and consistently operating the small-scale PGM circuit D.

In addition, Eastplats plans to complete its enhancement project for the retreatment project, while also refurbishing its existing PGM main circuit to increase the capacity and opportunity of PGMs recovery and sales.

Further, the company also wants to establish an appropriate tailings storage facility Phase 2 capital works programme and upgrade and repair the CRM Zandfontein underground shaft and rock winder to ensure they are available for underground mining operations.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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