Eastplats narrows third-quarter losses

8th November 2019 By: Marleny Arnoldi - Creamer Media Online Writer

JSE- and TSX-listed Eastern Platinum’s (Eastplats’) operating loss narrowed to $800 000 in the third quarter, compared with a loss of $2.4-million in the third quarter of 2018.

As a result of positive working capital of $8.4-million as at September 30, the net loss to shareholders decreased to $4.3-million, or $0.03 a share, for the nine months ended September 30, compared with a net loss of $8.4-million, or $0.07 apiece, for the nine months ended September 30, 2018.

Meanwhile, the company’s Barplats retreatment project reached 89% capacity during the third quarter, producing 375 222 t of chrome concentrate, grading 38.54%.

Eastplats said the project would continue ramping up to its full production.

On March 1, 2018, the company entered into an agreement with Union Goal Offshore Solution for the construction, re-mining and processing of the tailing resource and offtake of chrome concentrate from Barplats’ tailings facility, located at the company’s Crocodile River Mine, in South Africa.

Eastplats in April began evaluating and testing a platinum group metals (PGMs) recovery circuit, which generated additional revenue in the third quarter.

The company said it would announce a decision on the best path forward regarding the recovery of PGMs during the fourth quarter.

On October 24, Eastplats and its subsidiary Barplats entered into a sales agreement with Eland Platinum, providing for the sale of mining rights, immovable property, infrastructure and equipment for consideration to be received of R20 000, or $1 367, and the assumption of the rehabilitation obligations, and care-and-maintenance costs.