TORONTO (miningweekly.com) – South Africa-focused platinum miner Eastern Platinum (Eastplats) reported another first-quarter net loss as platinum group metals (PGMs) output fell by more than half, owing to the company winding down operations in an effort to weather the negative platinum-sector outlook.
Vancouver-based Eastplats in April said it would suspend development funding at its only operating mine in South Africa, the Crocodile River mine (CRM), citing the continued negative outlook in the global economic environment, the sustained weakness in PGMs pricing and the volatile operating environment in South Africa.
The net loss of $13-million for the quarter ended March 31 was slightly less than the $13.1-million net loss of the first quarter of 2012. The loss attributable to shareholders was $10.37-million or $0.01 a share, 16% greater when compared with a loss of $8.9-million a year earlier.
PGM ounces sold decreased by 54% to 11 224 oz, compared with 24 474 oz in the same prior-year period.
Eastplats said the US-dollar average delivered price per PGM ounce decreased by a per cent to $960/oz in the period, and the rand average delivered price per PGM ounce increased by 14% to R8 595/oz, when compared with R7 510/oz a year earlier.
The total rand operating cash costs decreased by 32% to R141-million, compared with R208-million in the comparable period of 2012.
During the quarter, CRM’s head grade decreased by 2% to 3.97 g/t and the average concentrator recovery declined to 74% from 77%.
Development metres decreased by 60% to 1 243 m and on-reef development decreased by 72% to 484 m.
Developed stoping units decreased by 60% to 16 011 m2 compared with 39 857 m2 in the comparable period of 2012. Run-of-mine ore hoisted decreased by 59% to 102 539 t.
As at March 31, Eastplats had $115.63-million cash in the bank.
The company’s TSX-listed stock on Wednesday morning traded at C$0.09 apiece, having halved in value since the start of the year.