VANCOUVER, British Columbia – Eastern Platinum has released a summary of the Company’s financial results for the year ended December 31, 2020 (all amounts in USD):
- 43% growth in revenue for the year ended December 31, 2020 of $56.1 million compared to $39.2 million in the prior year. The growth in revenue is due to the strong operating results from the Retreatment Project;
- Mining operation income (eight consecutive quarters) – December 31, 2020 $5.6 million (2019 – $5.5 million) (some difficulties in direct comparison include: commercial production timing in 2019 and the most recent four quarters being negatively impacted by COVID-19 costs and 2020 South Africa lockdowns);
- Cash generated from operations during the year December 31, 2020 – $1.6 million (2019 – negative $8.8 million);
- Positive working capital (excluding non-cash deferred revenue and lease liability) of $8.5 million as at December 31, 2020; and
- Net loss to equity shareholders of $8.0 million (loss of $0.08 per share) for the year ended December 31, 2020 compared to earnings to equity shareholders of $0.1 million (earnings of $0.00 per share) for the prior year, resulting from an increase in non-cash finance costs, foreign exchange losses and the legal settlement with AlphaGlobal.
The Company’s CRM Retreatment Project in South Africa was operating without restrictions at December 31, 2020. Additionally, the Company restarted the PGM Circuit D in 2020 and completed further improvements during March 2021.
The Company’s targets for 2021 were updated following the completed Rights Offering in January 2021, and include the following:
- Continue operating the Retreatment Project efficiently;
- Complete the upgrades and operate the PGM Circuit D;
- Complete the optimization project for the Retreatment Project;
- Establish the appropriate phase II of the tailing storage facility capital works program;
- Upgrade and repair the Crocodile River Mine (“CRM”) Zandfontein underground shaft and rock winder to ensure they are available for PGM operations;
- Complete the refurbishment of the existing PGM Main Circuit to increase the capacity and recovery opportunity of PGM recovery and sales;
- Complete the environmental impact assessment (“EIA”) regarding the haul road for the Mareesburg project;
- Prospect and assess work in relation to Zandfontein, Crocette and Spitzkop ore bodies;
- Conduct feasibility and assessment work regarding a vertical furnace and pelletizer of chrome concentrate;
- Assess CRM underground including all chrome recovery activities in relation to the Retreatment Project; and
- Fund capital requirements for care and maintenance, working capital and general and administrative costs.
Diana Hu, CEO of Eastern Platinum commented, “Eastplats has established stable operations with the Retreatment Project, and is seeking to complete its optimization program by the end of Q3 2021. This stability will allow growth with PGM extraction through both the PGM Circuit D and the PGM Main Circuit. These projects are expected to increase the revenue and income of Eastplats. During 2021, the Company’s focus is on operations and cash-flow to continue to build shareholder value.”