Eastern Platinum remains in red despite improvements
VANCOUVER, British Columbia – Eastern Platinum Limited (Eastplats) has reported its financial results for Q3 2020 as follows:
- Revenue for the three and nine months ended September 30, 2020 increased to $16.8 million (2019 $11.3 million) and $40.3 million (2019 – $27.1 million) respectively;
- Mining operating income continued to be generated for the three and nine months ended September 30, 2020 at $1.7 million and $4.0 million respectively;
- Positive working capital (excluding non-cash deferred revenue) of $7.6 million as at September 30, 2020;
- Net income to shareholders increased to $0.2 million (income of $0.00 per share) for the three months ended September 30, 2020 versus a loss of $2.8 million (loss of $0.03 per share) for the three months ended September 30, 2019. The improvement is attributable to the continued revenue generated by the Retreatment Project and the reversal of a foreign exchange loss in 2019; and
- Net loss to shareholders increased to $11.0 million (loss of $0.12 per share) for the nine months ended September 30, 2020 versus a loss of $3.0 million (loss of $0.03 per share) for the nine months ended September 30, 2019. This increased loss is attributable to the large foreign exchange loss from Q1 2020, from the economic effects of COVID-19, and the significant legal settlement in June 2020.
OPERATIONS
The Company continues its tailings remining operations generating chrome concentrate at Barplats Mines (Pty) Limited tailings facility (the Retreatment Project) located at the Company’s Crocodile River Mine in South Africa (CRM).
Chrome recovery from production during Q3-2020:
- Average grade Cr concentrate 38.66%
- Tons of Cr concentrate 275,816
The refurbished small-scale PGM circuit D (previously the scavenger plant circuit) successfully utilized the feed, following the recovery of chrome concentrate and produced PGM concentrate in Q3 2020 with the current output being assessed for delivery.
OUTLOOK
During Q3 2020, the Company’s CRM Retreatment Project in South Africa operated without restrictions following the temporary shut-downs due to COVID-19. The Company remains vigilant to continue its high standards in regards to safe operations for all.
Although the current outlook is positive due to the reduced restrictions, all operations could be affected by new COVID-19 related issues or new lockdown directives, in South Africa and therefore all forecasts are uncertain.
The completion timing of the Optimization Program for the Retreatment Project remains uncertain due to the lockdown on travel, the construction regulations and other COVID-19 related issues.
The Company’s remaining targets for 2020 include:
- Maximize operating results of the Retreatment Project;
- Effective operation of the PGM Scavenger Circuit; and
- Ensure appropriate care and maintenance on all resource properties.
The 2021 targets are to be finalized and approved in December 2020.
