Johannesburg - Dual-listed mining company, Eastern Platinum (Eastplats) has managed to decrease its operating loss by a substantial 394.65 percent to $29.9 million (about R449.6m) from $147.9m reported a year ago for the year to December.
Eastplats, like most companies in the mining sector, has been negatively affected by the fall of the commodity prices and slowing down of the economy over the last few years.
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Currently platinum is trading above $973 an ounce, a way off its highest level of $2 270 an ounce that it reached at its peak in May 2008.
The troubled Canadian platinum group metals producer has to deal with other issues besides the falling platinum price in the last eight years.
The company had to endure a frustrating period in 2015, when it failed to sell its South African operation, the Crocodile River mine, for $85m and the other remaining assets for $140m. The deal failed to materialise after Beijing Hehe Fengye Investment pulled out in October.
Beijing Hehe Fengye Investment is the majority shareholder in China’s Hebei Zhongbo Platinum, which was the one bidding to buy Eastplats stake in South Africa.
Furthermore, at the beginning of February, Eastplats released a media statement informing the public that its chief executive and president, Ian Rozier, was stepping down.
David Cohen, the chairman of the company, will take over, serving as the president and chief executive.
With the deal a thing of the past, Eastplats is currently engaged in the development and mining of platinum group metal deposits in the country.
Eastplats has assets on both the western and eastern limbs of the Bushveld complex, which holds approximately 80 percent of the world’s platinum supply.
The platinum price has managed to record some improvements since the year started, providing relief to some stocks in the sector.
Losses decreasing
The dominant players in the sector, Lonmin and Anglo Platinum, are up by 79.12 percent and 18.4 percent respectively since the beginning of the year.
Though Eastplats has yet to return to profitability, the losses are decreasing at an impressive rate as the net loss for the period reflects. Its net loss was down to $23.35m from $132.66m a year before.
The company also reported a basic loss per share of 21 US cents, down from 135c during the last period.
The balance sheet saw its cash on hand decreasing from $13.97m to $8.28m and the share price remains steady at C$0.80 (R9.23) on the Toronto Stock Exchange. The company is also listed on the JSE, were it closed unchanged at R10. The company did not respond to questions.
BUSINESS REPORT