TSX- and JSE-listed Eastern Platinum’s (Eastplats’) revenue for the second quarter ended June 30 decreased to $10.7-million from $18.8-million in the second quarter of 2024, representing an $8.1-million  or 43.1%, decrease.

Also, revenue for the six months to June 30 decreased to $25.5-million from $34.5-million in the six months ended June 20, 2024, representing a $9-million, or 26.1%, decrease.

Mine operating income decreased to $400 000 in the second quarter, from $4.4-million in the prior comparable quarter, as the gross margin declined to 3.4% in the period from 23.6% in the prior comparable quarter.

Mine operating income for the six months decreased by $14-million to a loss of $4.3-million from income of $9.7-million in the prior comparable period, resulting from a reduced gross margin of -16.9%, compared with 28.2% in the first half of 2024.

The second quarter’s operating loss was $3-million compared with an operating income of $1.6-million, while the operating loss for the six months under review was $11.1-million compared with an operating income of $1.6-million.

The net loss attributable to equity shareholders was $1.8-million in the second quarter compared to a net income attributable to equity shareholders of $3.5-million, with the decrease largely attributable to the significantly decreased revenue derived in the period.

Meanwhile, the net loss attributable to equity shareholders was $8.7-million for the six months, compared to net income attributable to equity shareholders of $2.6-million in the first half of 2024, with the decrease mainly attributable to the same reasons as described above for the quarter.

The company had a working capital deficit of $51.1-million at period end and short-term cash resources of $2.4-million.

Eastplats has also announced an amendment to the previously announced finance facility agreement with Investec Bank on November 10, 2022, between Investec and Eastplats’ wholly-owned subsidiary Barplats Mine.

The renewable 12-month revolving commodity finance facility is secured by platinum group metals (PGM) production delivered from the Zandfontein underground section to Impala Platinum.

The facility will be used for working capital purposes and support the full restart of the Zandfontein underground section of its flagship Crocodile River mine (CRM), located near Brits, South Africa.

The maximum size of the credit facility was increased to R240-million ($13.5-million) from R110-million ($6.2-million). There were no other changes to the facility.

“We thank Investec for its continued support and commitment to Eastplats. The increased credit limit will enable us to ramp up our underground production tonnages at the CRM. We are all working hard to improve PGM and chrome production,” says Eastplats CEO and president Wanjin Yang.

The company derived revenue from the processing of PGM and chrome concentrates at the CRM.

The majority of Eastplats’ revenue (about 28% for the second quarter and 53% for the half-year) is from chrome concentrate sales to third parties.

As the company ramps up production at the CRM, it expects to derive the majority of its revenue from PGM processing.

Total run-of-mine UG2 feed was 75 340 t for the second quarter, and 120 287 t in the six months.

Chrome production from the retreatment project at the CRM was 109 919 t total tailings feed in the six months.

The company produced 6 781 oz 6E PGMs in the second quarter and 9 961 oz in the six months.