JSE and Toronto-listed Eastern Platinum reduced its attributable net loss to $4.1 million (R69.2m) in the first three months of its year to March 31, from a $6.9m loss a year before.
The mining company said on Friday that the decrease in loss was largely due to lower overall production costs incurred at the Crocodile River Mine (CRM).
Revenue for the first quarter decreased to $13.8m from $14.8m, representing a $1m or -6.8% decrease.
Mine operating income increased by $5.4m to $0.7m in the quarter, up from a $4.7m mine operating loss previously. Gross margin increased from -31.6% in the first quarter of 2025 to 4.8% in the same period this year, a significant turnaround.
Eastplats President and CEO Wanjin Yang said the improvement was mainly due to an increase in platinum-group-metal (PGM) sales and the completion of shifting processing feed from the tailings storage facility (TSF) in the first quarter of 2025, to run-of-mine (ROM) UG2 ore from the Zandfontein underground section of the CRM in the first half of 2025.
“We had a challenging first quarter as monthly run-of-mine processing tonnages at the Crocodile River Mine were lower than targeted. That said, we are encouraged by the positive mine operating income and continue to focus on operational efficiencies to improve PGM and chrome production,” Yang said in the results statement.
The company derives revenue from PGM processing and chrome concentrates at the CRM. Most of Eastplats’ revenue (81% for the first quarter of 2026 versus 28% in the 2025 first quarter) was from PGM concentrate sales to Impala Platinum under related offtake agreements.
This is in line with the company’s expectations as it continues to ramp up production at the CRM, said Yang.
The company has started processing run-of-mine UG2 ore from the Zandfontein underground section at the CRM at higher grades of chrome and PGM recovery, respectively.
The retreatment project at the CRM ceased operations as of March 17, 2025, as the original CRM tailings from the TSF were fully processed.
The company had a working capital deficit (current assets less current liabilities) of $58.4m as at March 31, 2026 (December 31, 2025 – deficit of $56.9m) and cash resources of $73,000, versus $177,000 at December 31, 2025.
The company has a revolving credit facility with Investec Bank of up to R240m (about $14m). At March 31, 2026, the company had a balance owing of $10,487 (R179,74m versus R147.79m at December 31, 2025) in respect of these facilities.
Included in trade receivables, the company was owed $16,280 from Union Goal. The company is involved in arbitration proceedings with Union Goal.
The company said in the results it aims to maintain sufficient cash and access to financing to meet its short-term obligations, taking into account anticipated cash flows from operations.
The company’s Eastern Limb Projects are on hold, and the company has restarted underground operations and ramped up production based on available funding.
All of the company’s properties are situated on the western limb (Crocodile River Mine) and eastern limb (Kennedy’s Vale, Spitzkop, Mareesburg) of the Bushveld Complex, the geological environment that hosts approximately 80% of the world’s PGM-bearing ore.
Operations at the Crocodile River Mine include mining and processing ore from the Zandfontein underground section to both produce PGM and chrome concentrates, respectively.
The share price was unchanged at 457 cents on the JSE on Friday.
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