Covid-19 impact lead to widened loss for Eastplats

This $0.12 apiece loss was as a result of a large foreign exchange loss that the company incurred in the first quarter of the year, as well as owing to the economic effects of Covid-19 and a significant legal settlement in June.

The company generated mining operating income of $4-million for the nine months under review and revenue of $40.3-million.

Owing to strong revenue generation, net income to shareholders increased to $200 000 in the third quarter of the year, compared with a loss of $2.8-million that the company reported for the third quarter of last year.

Eastplats says that, although the chrome tailings retreatment project at its Crocodile River Mine (CRM) operation could operate for the most part without restrictions throughout the year, the completion timing of the optimisation programme for the project remains uncertain, owing to travel restrictions and construction regulations.

Meanwhile, the company produced 275 816 t of chrome concentrate from its Barplats and CRM operations, both in South Africa, and achieved an average chrome concentrate grade of 38.66%.

The company had positive working capital of $7.6-million at the end of September.