Eastplats narrows yearly loss to $1.2m

25th March 2022 By: Marleny Arnoldi - Creamer Media Online Writer

TSX- and JSE-listed Eastern Platinum (Eastplats) has narrowed its net loss attributable to shareholders to $1.2-million in 2021, compared with a loss of $8-million in 2020.

The company attributes the improvement to increased revenue from tailings processing and a gain of $3.3-million from lawsuits.

These gains were, however, offset by increased care-and-maintenance costs, owing to a rise in labour and electricity costs, and work on the Zandfontein underground project to get it restarted.

Eastplats had positive working capital of $14.6-million at the end of the year.

Its headline loss a share amounted to $0.01 apiece, against a headline loss a share of $0.09 posted in 2020.

The company produced 773 274 t of chromium concentrate and 1 853 t of platinum group metals (PGMs) concentrate in the year under review,

Eastplats CEO Diane Hu says the board is encouraged by the positive results as the company’s revenue growth and profitability improves from the Retreatment Project and capacity increases from the PGM circuits.

“We have initiated efforts to raise funds to restart the Zandfontein underground operations at the Crocodile River Mine (CRM) and, if successful, look forward to the opportunity to generate additional revenue streams for the company.”

This year, the company targets optimising operations of the Retreatment Project, as well as its PGM circuits.

It will also undertake a capital raise to help restart the Zandfontein operations at the CRM.