EASTERN PLATINUM LIMITED REPORTS RESULTS FOR THE SECOND QUARTER OF 2024
- Revenue for Q2 2024 decreased to
$18.8 million (Q2 2023 -$36.6 million ), representing a$17.8 million or 48.6% decrease. Revenue for YTD 2024 decreased to$34.5 million (YTD 2023 -$54.7 million ), representing a$20.2 million or 36.9% decrease.
- Mine operating income decreased by
$8.9 million (or -66.9%) to$4.4 million in Q2 2024 (Q2 2023 -$13.3 million ) as gross margin declined to 23.6% in Q2 2024 from 36.2% in Q2 2023. Mine operating income in YTD 2024 decreased by$7.1 million (or -42.3%) to$9.7 million (YTD 2023 -$16.8 million ), resulting from a reduced gross margin of 28.2% in YTD 2024 from 30.7% in YTD 2023. - Operating income was
$1.6 million in Q2 2024 compared to$10.4 million in Q2 2023. Operating income was$1.6 million in YTD 2024 compared to$12.2 million in YTD 2023. - Net income attributable to equity shareholders was
$3.5 million ($0.02 earnings per share) in Q2 2024 versus net income attributable to equity shareholders of$7.7 million ($0.04 earnings per share) in Q2 2023. The decrease in Q2 2024 net income was largely attributable to lower chrome sales in the quarter offset by a decrease in finance costs and a foreign exchange gain in the period due to the strengthening of the South African Rand. - Net income attributable to equity shareholders was
$2.6 million ($0.01 earnings per share) in YTD 2024 compared to net income attributable to equity shareholders of$7.3 million ($0.05 earnings per share) in YTD 2023. The decrease of YTD 2024 net income was mainly attributable to lower gross margins earned on year-to-date chrome sales offset by a decrease in finance costs. - The Company had a working capital deficit (current assets less current liabilities) of
$17.0 million as atJune 30, 2024 (December 31, 2023 – working capital deficit of$15.5 million ) and short-term cash resources of$17.4 million (consisting of cash, cash equivalents and short-term investments) (December 31, 2023 –$21.3 million ).
Operations
The Company derived revenue from the processing of PGM and chrome concentrates at the
Summary of chrome production for the three and six months ended
|
Q2 2024 |
Q2 2023 |
YTD 2024 |
YTD 2023 |
Total Tailings Feed (Tons) |
281,867 |
615,060 |
667,166 |
1,247,014 |
Average grade Cr concentrate |
38.4 % |
39.0 % |
38.5 % |
38.8 % |
Tons of Cr concentrate |
72,305 |
127,122 |
152,187 |
274,221 |
The Company continues the tailings storage facility ("TSF") wall building program, utilizing waste rock and paddocking, to raise the wall to facilitate continued depositing of reprocessed tailings. The reprocessing of the original CRM tailings (the "
Summary of PGM production for the three and six months ended
|
Q2 2024 |
Q2 2023 |
YTD 2024 |
YTD 2023 |
Tons of PGM concentrate |
808 |
959 |
1,753 |
2,115 |
PGM ounces produced (6E)* |
1,060 |
1,973 |
2,548 |
4,108 |
*PGM 6E ounces are estimates until final exchanges and umpire results have been concluded, which can take up to three months |
Year-over-year production decreased between Q2 2023 and Q2 2024 due to inclement weather and operational challenges incurred in the current period, as lower grade sections of the TSF, containing vegetation and other impediments, were being processed.
As the end of the
Prior Period Restatement of Comparatives
Certain 2023 comparative numbers in the condensed interim consolidated financial statements and corresponding MD&A have been restated to show the impact of an error that was identified and reported during the 2023 year end process, as discussed below.
As discussed in the previous news release of
A sales transaction that was included in deferred revenue at the end of 2022 and recognized as revenue in the first quarter of 2023 should have been recognized in the fourth quarter of 2022 based on the fact that the Company had met all of its required performance obligations at the time, as supported by the underlying contract and bill of lading. Previously reported revenue for the first quarter of 2023 was overstated by
The following table presents the effects of the restatement on the individual line items within the Company's unaudited Condensed Interim Consolidated Statement of Income (Loss), Condensed Interim Statement of Comprehensive Income (Loss) and Condensed Interim Statement of Financial Position, expressed in thousands of
|
Six months ended |
||
|
As previously |
Adjustment |
As restated |
|
$ |
$ |
$ |
Revenue |
58,694 |
(4,021) |
54,673 |
Production costs |
(36,820) |
2,324 |
(34,496) |
Mine operating income (loss) |
18,493 |
(1,697) |
16,796 |
Operating income (loss) |
13,898 |
(1,697) |
12,201 |
Net income (loss) for the period |
8,999 |
(1,697) |
7,302 |
Net income (loss) attributable to equity shareholders of the Company |
9,007 |
(1,697) |
7,310 |
Earnings (loss) per share, basic and diluted |
0.06 |
(0.01) |
0.05 |
Comprehensive income (loss) for the period |
1,211 |
(1,766) |
(555) |
|
As at |
||
|
As previously |
Adjustment |
As restated |
|
$ |
$ |
$ |
Accumulated other comprehensive loss |
(325,586) |
(13) |
(325,599) |
Deficit |
(843,237) |
13 |
(843,224) |
The Company's audited consolidated financial statements for the year ended
The Company has a primary listing on the
The Company has filed the following documents, under the Company's profile on SEDAR+ at www.sedarplus.ca:
- Condensed interim consolidated financial statements for the three and six months ended
June 30, 2024 ; and - Management's discussion and analysis for the three and six months ended
June 30, 2024 .
The condensed interim consolidated financial statements for the three and six months ended
About
Eastplats owns directly and indirectly a number of platinum group metals ("PGM") and chrome assets in the
Operations at the
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will," "plan," "intends," "may," "could," "expects," "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedarplus.ca.
In particular, this press release contains, without limitation, forward-looking statements pertaining to: completion of the original CRM tailings, timing of the completion of the commissioning of the processing plant, mitigation of revenue decreases at the CRM, the monthly ROM ore tonnage ramp up at the Zandfontein underground operations, and timing of expected monthly production rates of ROM ore. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in the Company's production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
All forward-looking statements in this news release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedarplus.ca. The forward-looking statements in this news release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
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