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Eastplats posts Q4 loss on lower production

14th March 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Canada’s Eastern Platinum (Eastplats), which operates the Crocodile River mine on South Africa’s Bushveld Igneous Complex, has recorded a loss attributable to shareholders of $1.34-million in the fourth quarter ended December 31, as a result of suspending production from the Zandfontein section of the mine.

This compared with a loss of $64.32-million in the same quarter of 2011.

Platinum-group-metal (PGM) ounces sold decreased by 29% to 14 066 PGM ounces in the quarter, compared with 19 854 PGM ounces sold in the same quarter a year earlier.

During the year Eastplats had suspended funding for its Mareesburg and Kennedy’s Vale projects, and in the fourth quarter announced the temporary suspension of stoping at Zandfontein in response to continuing cost pressures combined with depressed metal prices and negative industry outlook for a near-term recovery. The company expected to restart operations from Zandfontein during 2014.

The company also suffered temporary production stoppages earlier this year following a fatality in February.

Eastplats said the US dollar average delivered price per PGM ounce increased by 1% to $936 in the quarter, compared with $931/oz in 2011.

The company’s Toronto-listed stock had lost 61.70% of its lustre in the past year and on Thursday traded at 17.5 Canadian cents apiece.

Edited by Creamer Media Reporter

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