10 Nov 2023, 08:45
Eastern Platinum Limited Reports Results for the Third Quarter of 2023
Year-over-year increase in revenue driven by strong chrome prices
Commenced blasting activities at the Crocodile River Mine, initiating the soft restart of the Zandfontein underground section
Vancouver, British Columbia--(Newsfile Corp. - November 10, 2023) - Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to report that it has filed its condensed interim consolidated financial statements for the three and nine months ended September 30, 2023 and the corresponding management's discussion and analysis. Below is a summary of the Company's financial results for the third quarter of 2023 ("Q3 2023") and for the nine months ended September 30, 2023 ("YTD 2023") (all amounts in USD unless specified) in comparison to the same respective period in 2022 ("Q3 2022" and "YTD 2022"):
Revenue for Q3 2023 increased to $21.8 million (Q3 2022 - $3.6 million), representing a $18.2 million or 505.6% increase. Revenue for YTD 2023 increased to $80.5 million (YTD 2022 - $41.5 million), representing a 94.0% increase.
Mine operating income increased by $5.1 million (or 268.4%) to $7.0 million in Q3 2023 (Q3 2022 - $1.9 million) while gross margin decreased from 52.5% in Q3 2022 to 32.1% in Q3 2023. Mine operating income in YTD 2023 increased by $16.1 million (or 171.3%) to $25.5 million (YTD 2022 - $9.4 million) and gross margin increased to 31.7% in YTD 2023 from 22.8% in YTD 2022.
Operating income was $3.6 million in Q3 2023 compared to an operating loss of $0.9 million in Q3 2022. Operating income improved by $17.4 million to $17.5 million in YTD 2023 from $0.1 million in YTD 2022.
Net income attributable to equity shareholders was $3.1 million ($0.02 earnings per share) in Q3 2023 versus net loss attributable to equity shareholders of $6.6 million ($0.05 loss per share) in Q3 2022. The increase in Q3 2023 net income was largely attributable to the significant increase in third party chrome revenue from the sales of chrome concentrate with respect to the Company's Retreatment Project at Barplats Mines (Pty) Limited's tailings storage facility (the "Retreatment Project") located at the Crocodile River Mine ("CRM") in South Africa.
Net income attributable to equity shareholders increased to $12.1 million ($0.07 earnings per share) in YTD 2023 compared to net loss attributable to equity shareholders of $2.4 million ($0.02 loss per share) in YTD 2022. The improvement during YTD 2023 is mainly attributable to the increased revenue and positive gross margins generated by the significant increase in third party chrome revenue as mentioned above.
The Company had a working capital deficit (current assets less current liabilities) of $17.1 million as at September 30, 2023 (December 31, 2022 - working capital deficit of $39.5 million) and short-term cash resources of $17.3 million (consisting of cash, cash equivalents and short-term investments) (December 31, 2022 - $2.4 million).