www.eastplats.com
Eastern Platinum Limited (TSX & AIM: ELR; JSE: EPS) is Canada's leading platinum group metals producer. Eastplats is currently engaged in the acquisition, development and mining of platinum group metal deposits in South Africa. Eastplats, South Africa's sixth largest platinum group metals producer has assets on both the western and eastern limbs of the Bushveld Complex which holds 80% of the world’s platinum supply.
Eastern Platinum swings to Q2 loss on lower production, increased costs
Eastern Platinum (TSE:ELR) swung to a second-quarter a net loss stemming from lower production on account of labour disputes at its flagship Crocodile River mine in South Africa in May, as well as higher cash costs.
The Vancouver-based company’s shares fell 20 cents, or 2.6%, to close at $0.74 on Monday.
For the three months ending June 30, revenues fell to $26.9 million from $36.6 million in the year earlier quarter.
Eastern Platinum recorded a net loss of $7.95 million, or one cent loss per share, compared to earnings of $3.45 million, or one cent per share, in the year-ago period.
Analysts, on average, had expected a net loss of one penny, on revenues of $26.6 million.
The U.S. dollar average delivered price per platinum group metals ounce increased 10% to$1,113 in the latest quarter, but sales of the metals slid 33% to 20,528 ounces.
The company said production and mining had been negatively impacted by labour issues related to the illegal underground sit-in followed by damage to the underground infrastructure at the Crocodile River Mine.
Indeed, run-of-mine ore processed decreased by 30% to 201,986 tonnes during the quarter. Head grade fell to 3.9 grams per tonne, down from 4.1 grams per tonne a year earlier. Recoveries dropped too.
However, the company said that the labour issues were settled in late May with the signing of a two-year wage agreement with the National Union of Mineworkers.
Still, operating cash costs increased by 72% from $882 per ounce in the second quarter of 2010 to $1,515 per ounce, primarily due to a 33% decrease in ounces sold and a 3% increase in total Rand operating cash costs, combined with a 10% appreciation of the South African Rand relative to the U.S. dollar, the company said.
