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Eastplats losses mount Posted: Thu, 13 Nov 2008 [miningmx.com] -- EASTERN Platinum (Eastplats) lost $10.6m in the September quarter compared with a loss of just $1.39m in the 2007 September quarter because of the plunge in platinum group metal (pgm) prices. The average realised basket price per pgm ounce was $1,193 for the quarter which was 10% up on the $1,088 received in the 2007 September quarter but 28% down from the $1,657 earned in the 2008 June quarter. While pgm production from the group’s Crocodile River Mine (CRM) rose 5% to 30,758oz (September 2007 quarter – 29,417oz) the mine’s revenues were hit by negative provisional sales price adjustments. According to CEO Ian Rozier “negative provisional sales price adjustments (prior months’ adjustments and end of quarter mark-to-market) of $29.4m were recorded in the quarter causing revenues from CRM to decrease by 70% to $9.29m compared to $31.5m in the third quarter of 2007.” On November 7, Rozier had announced a series of cutbacks to Eastplats expansion plans because of the drastically changed circumstances facing the platinum sector. He commented today that, “the significant decline in pgm prices during the last four months has had a negative impact on the company’s cash flow. Click Here to subscribe to our daily newsletter
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