Eastplats reports narrower losses

Revenue for the year-to-date, however, decreased to $39.3-million, representing a $6.2-million, or 13.6%, decrease year-on-year.

The company says its mine operating loss narrowed by $800 000 to $200 000 in the third quarter as its gross margin improved to -1.8% in the third quarter of this year from -9.4% in the third quarter of 2024.

Mine operating income for the year-to-date decreased by $13.3-million, or -152.9%, to a mine operating loss of $4.6-million, resulting from a reduced gross margin of -11.6% in the year-to-date from 19.1% in the same period in 2024.

Eastplats’ operating loss was $3.4-million for the third quarter, compared with an operating loss of $5.7-million in the third quarter of 2024. The operating loss for the nine months to September 30 was $14.5-million, compared with a loss of $4.1-million in the prior comparable period.

The net loss attributable to equity shareholders was $2.2-million – $0.01 a share – in the third quarter of this year, compared with the net loss attributable to equity shareholders of $3.4 million – $0.02 a share – in the third quarter of 2024.

The company says the decrease net loss was largely attributable to the significantly increased revenue derived from platinum group metal (PGM) sales during the period.

The company notes that it had a working capital of $55.1-million as at September 30 and short-term cash resources of $100 000 (consisting of cash, cash equivalents and short-term investments).

As announced previously on August 13, Eastplats says the maximum size of the credit facility provided by Investec Bank was increased to R240-million from R110-million.

The company says it uses the proceeds of the credit facility for working capital purposes.

At September 30, the company had used R94.7-million of the credit facility.

Meanwhile, Eastplats says the company derived revenue from the processing of PGM and chrome concentrates at the Crocodile River mine.