EASTERN PLATINUM LIMITED REPORTS RESULTS FOR THE THIRD QUARTER OF 2024
VANCOUVER, BC, Nov. 8, 2024 /CNW/ - Eastern Platinum Limited (TSX:ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to report that it has filed its condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and the corresponding management's discussion and analysis ("MD&A"). Below is a summary of the Company's financial results for the third quarter of 2024 ("Q3 2024") and for the nine months ended September 30, 2024 ("YTD 2024") in comparison to the same respective period in in 2023 ("Q3 2023" and "YTD 2023") (all amounts in USD unless specified):
Revenue for Q3 2024 decreased to $11.0 million (Q3 2023 - $21.8 million), representing a $10.8 million or 49.5% decrease. Revenue for YTD 2024 decreased to $45.5 million (YTD 2023 - $76.5 million), representing a $31.0 million or 40.5% decrease.
Mine operating income decreased by $8.0 million (or -114.3%) to a mine operating loss of $1.0 million in Q3 2024 (Q3 2023 - mine operating income of $7.0 million) as gross margin declined to -9.4% in Q3 2024 from 32.1% in Q3 2023. Mine operating income in YTD 2024 decreased by $15.1 million (or -63.4%) to $8.7 million (YTD 2023 - $23.8 million), resulting from a reduced gross margin of 19.1% in YTD 2024 from 31.1% in YTD 2023.
Eastplats incurred an operating loss of $5.7 million in Q3 2024 compared to operating income of $3.6 million in Q3 2023. Operating loss was $4.1 million in YTD 2024 compared to operating income of $15.8 million in YTD 2023.
Net loss attributable to equity shareholders was $3.4 million ($0.02 loss per share) in Q3 2024 versus net income attributable to equity shareholders of $3.1 million ($0.02 earnings per share) in Q3 2023. The decrease in Q3 2024 net income was largely attributable to lower chrome sales in the quarter offset by a decrease in finance costs and a foreign exchange gain in the period due to the strengthening of the South African Rand.
Net loss attributable to equity shareholders was $0.8 million ($0.00 loss per share) in YTD 2024 compared to net income attributable to equity shareholders of $10.4 million ($0.06 earnings per share) in YTD 2023. The decrease of YTD 2024 net income was mainly attributable to lower gross margins earned on year-to-date chrome sales offset by a decrease in finance costs and a foreign exchange gain in the period due to the strengthening of the South Africa Rand.
The Company had a working capital deficit (current assets less current liabilities) of $26.6 million as at September 30, 2024 (December 31, 2023, working capital deficit of $15.5 million) and short-term cash resources of $8.5 million (consisting of cash, cash equivalents and short-term investments) (December 31, 2023, $21.3 million).
Wanjin Yang, Chief Executive Officer and President of Eastplats commented, "We continue to ramp up tonnages at the Zandfontein underground section at the Crocodile River Mine to produce high grade PGM and metallurgical chrome concentrate. As we approach the end of 2024 and plan for 2025, we are focussed on improving recoveries and operating efficiently."
Operations
The Company derived revenue from the processing of PGM and chrome concentrates at the Crocodile River Mine ("CRM"). Eastplats' majority of revenue (approximately 84% and 92% for Q3 2024 and YTD 2024, respectively) is from chrome concentrate sales.
Retreatment Project, Chrome recovery
Summary of chrome production for the three and nine months ended September 30, 2024 and 2023:
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Total Tailings Feed (Tons)
294,246
519,914
961,412
1,766,928
Average grade Cr concentrate
38.1 %
38.6 %
38.4 %
38.7 %
Tons of Cr concentrate
45,988
102,898
198,175
377,110
The Company continues the tailings storage facility ...