Eastern Platinum Limited (Eastplats) has reported weaker financial results for the second quarter of 2025, alongside news of an expanded credit facility with Investec Bank to support the ramp-up of underground operations at its Crocodile River Mine in South Africa.
Financial and operational highlights for Q2 2025:
- Revenue fell 43.1% to $10.7 million, down from $18.8 million in Q2 2024.
- Mine operating income dropped 90.9% to $0.4 million (Q2 2024: $4.4 million), with gross margins narrowing to 3.4% from 23.6%.
- Operating loss of $3 million, compared with an operating income of $1.6 million in Q2 2024.
- Net loss attributable to shareholders of $1.8 million (loss per share: $0.01), versus net income of $3.5 million ($0.02 earnings per share) a year earlier.
- YTD 2025 revenue down 26.1% to $25.5 million, with a net loss of $8.7 million compared to net income of $2.6 million in YTD 2024.
- Working capital deficit widened to $51.1 million as at June 30, 2025.
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Credit facility expansion:
- Eastplats has increased its renewable 12-month revolving commodity finance facility with Investec Bank from R110 million ($6.2 million) to R240 million ($13.5 million).
- Facility is secured by PGM production from the Zandfontein underground section and will be used for working capital and to accelerate the full restart of the underground mine.
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Production update:
- Chrome concentrate sales accounted for 28% of Q2 2025 revenue.
- Underground chrome production: 75,340 tons run-of-mine UG2 feed in Q2, producing 19,768 tons (wet) of concentrate at an average grade of 40.7%.
- PGM production: 1,401 tons of concentrate produced in Q2, containing an estimated 2,072 ounces (6E).
- Eastplats expects PGM production to make up the majority of revenue as underground mining ramps up.
CEO Wanjin Yang said the increased facility would “enable us to ramp up our underground production tonnages at the Crocodile River Mine” and that the team was working to improve both PGM and chrome production.
The company’s full Q2 2025 financial statements and management’s discussion and analysis are available on SEDAR+ and the JSE website.