From liezel hill of mining weekly...
TORONTO (miningweekly.com) - Vancouver-based Eastern Platinum (Eastplats) earned $4,04-million in the third quarter of 2010, compared with $1,84-million a year earlier, after earnings were buoyed by higher sales volumes and metals prices.
Revenue for the quarter was up 39% year-on-year, to $38,07-million, and earnings before interest, tax, depreciation and amortisation (ebitda) rose 124%, to $11,12-million, Eastplats reported on Monday. The company operates the Crocodile River mine in South Africa and is also developing the Crocette section at Crocodile River.
During the quarter, the company recorded a one-time adjustment to chrome revenues that resulted from a change to the timing of chrome revenue recognition.
Under the previous method of chrome revenue recognition, the company's revenues would have been $41,3-million, ebitda would have been $12,2-million and net profit attributable to equity shareholders of the company would have been $4,98-million.
Eastplats sold a best-ever 37 798 oz of platinum-group metals (PGMs) in the third quarter, an increase of 26% compared with a year earlier.
"Our record quarterly production is a result of our ongoing efforts to streamline operations at CRM," said CEO Ian Rozier.
"We look forward to further improvements, as well as production from Crocette, which we expect to contribute ounces within the next 12 months."
The firm realised better average basket prices a PGMs ounce in both US dollars and South African rands compared with the third quarter of 2009 - the dollar average delivered price rose 25% to $953/oz, while the average delivered basket price in rands increased 17% to R6 966/oz.
Operating cash costs after by-product credits were flat year-on-year in rand terms, but increased 7% in dollar terms, to $625/oz.
Eastplats ended the quarter with $20-million in cash, cash equivalents and short term investments