Eastplats is now focusing on its Zandfontein underground ramp-up

EASTERN Platinum has said that it was now focused on ramping up underground operations at Zandfontein as it weighs capital plans for re-opening full operations at the mine, and advance the environmental impact assessment at the Mareesburg and Spitzkop mines.

The Toronto and JSE-listed platinum group metals (PGMs) and chrome miner said yesterday that it was in the process of confirming capital plans for the re-opening of Zandfontein’s underground operations in Brits in North West.

This is while Eastplats pursues completion of the second phase of the company’s tailings storage facility capital works programme.

Eastplats has completed a life-ofmine study and underground mine design for Zandfontein, with the company’s board of directors supportive of the carrying out of the underground restart business plan at the mine subject to final evaluation and funding arrangements.

Another key focus area for Eastplats going forward is the advancement of the environmental impact assessment at the Mareesburg and Spitzkop projects, in addition to continued prospecting work in relation to the Zandfontein, Crocette and Kareespruit sections of the CRM and Kennedy’s Vale, and Spitzkop mines at the eastern limb of the Bushveld Complex in Limpopo.

“If successful, PGMs production is expected to increase in 2024,” the company said yesterday. This was after Eastplats reported a surge in net income attributable to shareholders from $1.4million (R26m) to $3.3m for the fourth quarter of 2023.

It attributed the increase in net income for the period “to the significant increase in third-party chrome concentrate sales in the period, offset by pre-production costs of $2.1m as the company initiated the restart of the Zandfontein underground section” at the Crocodile River Mine (CRM).

On a restated basis, the lower net income for the year’s earlier period has been attributed to “a restated operating loss offset by other income of $6.6m, which was mainly related to the change in value” of the company’s payable loans.

Eastplats had a working capital deficit of $15.5m as at December 31, 2023, and short-term cash resources of $21.3m consisting of cash, cash equivalents, and short-term investments.

Eastplats CEO and president Wanjin Yang said they were proud of the results that their chrome and PGMs businesses had achieved.

“The team continues to work hard as the retreatment project comes to an end, turning its focus to ramping up underground tonnages in the Zandfontein underground section at the Crocodile River Mine,” Yang said.

“Eastplats remains committed to continuing its operational and costefficiency initiatives, while being mindful of PGM market price movements.”

Revenue for the 2023 fourth quarter period under review increased to $30.5m against $12.4m restated for 2022.

Revenues for the 2023 full year subsequently increased to $106.9m, a record for the company that compares higher than the re-stated $53.9m for the year’s earlier full-year period.

For the 2023 full year, Eastplats generated revenue from processing

PGMs and chrome concentrates.

Up to 96% and 95% for the fourth quarter and full year respectively in revenue was accounted for by chrome concentrate sales.

Since July 1, 2022, chrome revenue has been recognised only through third-party sales of chrome concentrate, with the company also deriving PGM revenue under an off-take agreement with Impala Platinum from further processing of tailings materials, following the production of chrome concentrates.

For the 2023 full year, Eastplats’s mine operating income increased by $9.6m, while operating income was $2.8m in the fourth quarter of 2023, compared to an operating loss of $4.8m restated for the same quarter in 2022.

Operating income increased by $23.2m in the full-year 2023 period under review.