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Eastplats losses widens

Aug 14 2012 17:28 I-Net Bridge

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Johannesburg – Eastern Platinum Limited [JSE:EPS] has reported a widening in its losses for the quarter ended June to a loss of $0.09 from a loss of $0.01 a year ago.

Its attributable loss widened to $85.67m from a loss of $7.95m a year earlier.

It recorded an impairment charge of $88.28m on its Eastern Limb properties during Q2.

PGM ounces sold increased 29% to 26 412 ounces in Q2‚ but the US dollar average delivered price per PGM ounce decreased 19% to $902 compared to $1 113 in Q2 2011.

The rand average delivered price per PGM ounce decreased 3% to R7 324.

Total rand operating cash costs increased 11% to R235 and rand operating cash costs net of by-product credits decreased 9% to R7 390 per ounce in Q2 2012 compared to R8 119 per ounce in Q2 2011.

Rand operating cash costs decreased 14% to R8 881 per ounce while US dollar operating cash costs net of by-product credits decreased 24% to $910 per ounce.

At end June 2012‚ Eastplats had a cash position of $167.87m compared with $250.80m at the end of December 2012.

Eastplats said that following its announcement in May 2012 of its proposed plan for the suspension of development of the Mareesburg open-pit mine and construction of the Kennedys Vale concentrator‚ the construction work had wound down efficiently following a coordinated plan.

The project will be an estimated 40% complete and is forecast to be on full care and maintenance by the end of September 2012.

It also reported that its implementation of a comprehensive mine development plan at the Crocodile River Mine was progressing well.

As a result of the temporary suspension of stoping at the Zandfontein section while continuing "on-reef" mining operations at the Maroelabult section‚ the company expects production for the full year of 2012 to be approximately 75 000 PGM ounces and for the full year of 2013 to be approximately 60 000 PGM ounces.

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eastern platinum  |  mining
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