JOHANNESBURG - Eastern Platinum (Eastplats) has temporarily shut its Crocodile River Mine (CRM) chrome concentrate operation after an employee tested positive for the Covid-19 pandemic, the company said earlier today.
Eastplats, the Canadian headquartered mining company which operates South African based platinum group metals (PGM) and chrome assets said it had closed the operation it had taken precautionary steps including personnel self-isolation and full-scale deep cleaning of CRM following the closure of the plant at the weekend.
“To ensure the safety and health of the staff, the company is instituting a full baseline testing of staff and contractors for Covid-19. The company has prepared and is undertaking additional training and education, and targets chrome concentrate production to restart not later than Saturday, June 20, 2020,” said Eastplats.
The group said the effects of the pandemic were changing rapidly and the consequences of the temporary shutdown of CRM were expected to be minimal.
“However if it is extended the effects cannot be reasonably estimated at this time but could have material adverse effects on the company’s business and cash flows,” said the company.
Earlier this month Eastplats told investors that revenue for the quarter ended March had increased to $14.2 million up from $5.4 million. Eastplats said that it was in a strong financial position with cash of $8.3 million. The company also said that its operating loss had narrowed to $1.2 million from $1.8 million last March.
However it reported an $8.2 million net loss to equity shareholders, or a $0.09 loss a share compared with $800 000 net loss to equity shareholders a year earlier or a loss of $0.01 share.
“The increase resulted from a $8.7 million change in foreign exchange losses due to a significant devaluation in the South African rand to the US$ as a result of Covid-19,” the company said earlier this month.