JSE-listed Eastern Platinum’s (Eastplats’) revenue decreased by 5.4% year-on-year to $15.9-million for the third quarter, while revenue for the nine months ended September 30 increased by 30.5% year-on-year to $52.6-million.

“We continue to be encouraged by the results from the third quarter as Eastplats continues its positive revenue growth and profitability through the retreatment project; increasing platinum group metals (PGMs) capacity following the recent commissioning of the PGM Main Circuit B; and the possibility to restart the Zandfontein underground operations at the Crocodile River mine (CRM),” CEO Diana Hu said in a release on November 11.

Mining operating income increased to $1.9-million for the third quarter, representing an improved gross margin of 11.9% for the period, compared with 9.8% in the prior comparable period.

Mining operating income for the nine months increased to $6.6-million, representing an improved gross margin of 12.6%.

Eastplats incurred an operating loss of $400 000 for the third quarter – an improvement on the operating loss of $800 000 reported for the third quarter of 2020.

The operating loss for the nine months to September 30 narrowed to $1.4-million from the loss of $3.1-million reported for the prior comparable period.

Eastplats, however, swung to a net loss of $2.5-million for the third quarter, from a net profit of $200 000 in the prior comparable period, mainly as a result of an increase in the foreign exchange loss as the rand weakened against the dollar.

Net income for the nine months to September 30, meanwhile, increased to $800 000, compared with a loss of $11-million in the prior comparable period, mainly as a result of higher revenue and positive gross margins generated by remining and processing the company’s tailings resources at CRM to produce chrome concentrate and PGMs concentrate, respectively; a decrease in the foreign exchange loss as the rand recovered against the dollar; and a gain of $3.3-million to settle and dismiss certain outstanding lawsuits.

Eastplats had positive working capital of $13.1-million as at September 30.

The company continues its retreatment project at the Barplats Mines tailings facility at CRM.

OUTLOOK
The company’s targets for the full year have been updated following the completion of a rights offering in January, including plans to continue operating the retreatment project efficiently; to reconfigure, optimise and consistently operate the PGM Circuit D; and completion of the refurbishment of the existing PGM Main Circuit B to increase the capacity and opportunity of PGM recovery and sales.

Moreover, completion of the optimisation of the retreatment project and establishment of the second phase of the tailings storage facility capital works programme are ongoing.

Further, upgrades and repairs to the CRM Zandfontein underground shaft and rock winder to ensure they are available for underground mining operations are expected to be completed by year-end.

Also, the Mareesburg project environmental work to complete the legal scan on the environmental-impact assessment (EIA) and other environmental studies and amendments are ongoing, as are prospecting and assessment work in relation to the Zandfontein, Crocette and Spitzkop orebodies.

The EIA and assessment work regarding a vertical furnace and pelletiser of chrome concentrate are also ingoing.

Lastly, the CRM underground assessment, including all chrome recovery activities in relation to the retreatment project, is ongoing.

Eastplats says it is actively progressing several revenue opportunities and exploring options to use or monetise other assets.

Moreover, it is pursuing funding arrangements to execute the Zandfontein Underground restart business plan.