Eastplats confident retreatment project ramps up operation

EASTERN Platinum (Eastplats) yesterday said the construction of the Retreatment Project would remain its primary focus as it ramps up production across its operation.

The group said its management would monitor the progress based on the agreed construction timetable for the chrome operations.

It said cash and short-term investments of $18.4 million (R261.74m) and working capital of $18.5m as at the end of June was available for completion of the Retreatment Project and other 2018 operations, adding that it would target revenue-producing operations in the fourth quarter.

Eastplats and its subsidiary, Barplats Mines, entered into a framework agreement with Union Goal on March 1 relating to construction, mining and processing of the tailings resource and off-take of chrome concentrate from Barplats’ tailings facility located at the company’s Crocodile River Mine in South Africa (CRM).

The group holds directly and indirectly an 87.5 percent interest in CRM through Barplats. It said other projects have been placed on hold and all appropriate resources have been authorised and allocated for project completion.

Eastplats said the construction of the Retreatment Project was continuing and all significant items required for the chrome circuit completion.

“The tailings facility is progressing well and updated dam construction continues on schedule. Construction is currently estimated to be completed before the end of the third quarter of 2018 and immediately followed by commissioning,” Eastplats said.

In the six months to endJune, Eastplats reported an operating loss of $4.93m, down from $5.41m for the six months to end-June. However, net loss for the period widened to $5.41m as compared to $4.74m reported last year. Headline loss per share was flat at 5 US cents a share.

Eastplats said its net loss widened to $4.2m compared to $2.2m in the second quarter, compared to the corresponding period last year. However, the loss included a foreign exchange loss of $2.2m in the second quarter of 2018 compared to $0.3m in the same period of 2017.

Eastplats, based in Vancouver, is listed both on the Toronto Stock Exchange and the JSE.

Eastplats closed flat on the JSE yesterday at R1.80.