Eastern Platinum’s attributable net loss widened to $6.1 million (R98.7m) in the second quarter to June 30 versus the $1.8 million net loss reported at the same time last year, primarily due to the decrease in overall sales and higher production costs incurred at the Crocodile River Mine (CRM).
The Toronto and Johannesburg-listed company reported in results on Friday that the increase in net loss was primarily due to the decrease in overall sales and higher production costs incurred at the CRM, which is the company’s flagship operation on the western limb of South Africa’s Bushveld Complex.
"We had a challenging second quarter as monthly run-of-mine (ROM) processing tonnages at the Crocodile River Mine were lower than targeted. We will continue to focus on operational efficiencies to improve PGM and chrome production," said Charlie Liu, Interim CEO and President of Eastplats.
The company warned that although it continues to advance underground operations at the CRM, material uncertainty remains as to whether the company will generate sufficient cash inflows to meet its expected financial obligations in the next 12 months. The company is also in arbitration proceedings with Union Coal.
Two weeks ago, the company, following a change in chief financial officer three weeks before, announced that its chairman Changyu Liu will be appointed as Interim President and CEO, effective August 13.
Liu succeeded Wanjin Yang, and operations were not expected to be affected by the leadership transition.
Eastplats also announced at the time it had secured a new credit facility of up to Canadian $2m (about R23m) with holding company Ka An Development and intends to use the proceeds for working capital to support the ramp-up of underground production at its Crocodile River platinum group metals operation in the North West Province.
Eastplats intends to ramp up run-of-mine ore at CRM’s Zandfontein underground section to 70,000 tons per month by the end of this year.
“Although the company has been successful in raising equity and debt financing in the past, there can be no assurance that additional funding will be available when required, or, if available, on terms acceptable to the company. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern,” the company said in its results.
Quarterly revenue fell 25.8% to $7.9m from $10.7m in the second quarter of 2025. Revenue year-to-date 2026 decreased to $21.7m, representing a $3.8m or 14.8% decrease over the same period last year.
Mine operating income decreased by $4.6m to -$4.2m in the second quarter, while gross margin decreased from 3% to -53%. The decrease was mainly due to a decrease in platinum-group-metal (PGM) sales and higher production costs, the company said.
Mine operating income year-to-date increased by $0.7m, or 17.2%, to a mine operating loss of $3.6m, resulting from an increased gross margin of -16.4% in year-to-date 2026 from -16.9% in year-to-date 2025.
The operating loss was $7.9m in the second quarter compared to a loss of $3m a year before.
The company has a working capital deficit (current assets less current liabilities) of $67.9m as at June 30, 2026, while at December 31, 2025, this figure came to $56.9m. Short-term cash resources stood at $362,000, well up from $177,000 at December 31.
The company derives revenue from the processing of PGM and chrome concentrates at the CRM. Eastplats' majority of revenue (approximately 78% for the second quarter) is from PGM concentrate sales to Impala Platinum under related offtake agreements.
This was in line with the company's expectations as it continues to ramp up production at the CRM.
The company started processing ROM (run of mine) UG2 ore from the Zandfontein underground section at the CRM during the third quarter of 2024, at higher grades of chrome and PGM recovery, respectively.
The company’s other existing projects, the Kennedy’s Vale (KV), Spitzkop PGM, and Mareesburg PGM projects, or together the “Eastern Limb Projects”, have been either on care and maintenance or on hold since 2012.
THE NATIONAL
edward.west@nationalMG.co.za