JSE-listed Eastern Platinum’s (Eastplats') revenue for the six months ended June 30 increased by 49% year-on-year to $23.5-million.

Its operating loss, however, remained flat at $2.2-million, despite the production lost owing to measures implemented to halt the spread of Covid-19.

Eastplats posted a net loss to equity shareholders of $11.2-million for the six months ended June 30, compared with a net loss of $200 000 for the same period of 2019. The loss is mainly the result of a $7.5-million change in foreign exchange losses owing to a significant devaluation in the South African rand versus the dollar as a result of Covid-19.

The settlement of a legal dispute with AlphaGlobal Capital also contributed to the loss. In June, Eastplats announced that it had closed a settlement transaction with AlphaGlobal, pursuant to which AlphaGlobal has discontinued all claims by AlphaGlobal against the company and its subsidiaries and released the company from any and all claims that AlphaGlobal may have against the company or its subsidiaries.

The claims against the company were first initiated with the start of litigation in 2017 in South Africa and continued by litigation in 2018 in the British Virgin Islands in relation to the payment of amounts alleged to be owing under a 2007 promissory note entered into by the company and AlphaGlobal.

Eastplats had a strong financial position with cash of $4.7-million and net working capital (excluding non-cash deferred revenue) of $8-million as at June 30.

Following the initial Covid-19-related hard lockdown in South Africa, Eastplats' subsidiary Barplats Mines resumed operations of its retreatment plant. Work has also started on a platinum group metals (PGMs) scavenger plant.

The company will update its forecasts following the completion of the Optimisation Programme for its retreatment project which is currently not known.

The company’s targets for the full-year include completion of the Optimisation Programme for the retreatment project; maximising the operating results of the retreatment project; establishing and executing of the appropriate tailing storage facility Phase II capital works programme; and commissioning and operation of the PGMs scavenger plant.

Moreover, it includes assessment and decision regarding the larger-scale PGMs production for the tailings resource; assessment of the Crocodile River Mine Zandfontein underground operations; ensuring appropriate care and maintenance on all resource properties; and assessment and decision regarding the Mareesburg project.

The company says it is actively looking at opportunities for its other assets and properties and exploring options to use or monetise these assets.