Eastplats derives its income from processing PGM and chrome concentrates at the Crocodile River Mine. Picture: Supplied
Image: File
Eastern Platinum (Eastplats) has reported a marked improvement in its fourth-quarter performance for 2025, buoyed by stronger production and higher platinum group metals (PGM) sales, even as full-year losses widened due to project impairments and liquidity pressures.
The company, which operates the Crocodile River Mine (CRM) in South Africa’s Bushveld Complex, on Wednesday said that revenue for the fourth quarter of 2025 rose 31.2% to $22.3 million, compared with $17.0m in the same period a year earlier.
This growth was driven primarily by increased PGM production and sales, alongside improved operational efficiencies at its Zandfontein underground section.
Mine operating income showed a dramatic turnaround, shifting from a loss of $7.9m in Q4 2024 to a profit of $6.3m in Q4 2025. Gross margins improved significantly to 28.2% from a negative 46.2%, reflecting both higher output and better cost management.
For the full year, mine operating income more than doubled to $1.7m.
Despite this operational progress, Eastplats remained in the red. The company posted an operating loss of $7.0m in the fourth quarter, an improvement from $8.6m a year earlier. However, the full-year operating loss widened to $21.6m from $12.7m in 2024.
Net losses followed a similar pattern. Quarterly net loss attributable to shareholders narrowed to $7.5m from $11.9m, supported by stronger revenues. But for the full year, net loss increased to $18.4m, largely due to an impairment charge related to the Mareesburg project.
Eastplats CEO Wanjin Yang said the company’s focus on boosting production is beginning to yield results.
“We continue to focus on improving production results, which is reflected in the positive mine operating income earned in the last quarter of 2025,” he said.
“Our next goal is to consistently increase run-of-mine production tonnages of 40,000 tons per month in the first half of 2026. This will help us achieve break-even net income again.”
Operationally, Eastplats delivered strong growth in both chrome and PGM output from underground mining. Run-of-mine UG2 feed rose to 94,606 tons in Q4 2025, up from 63,181 tons a year earlier, while chrome concentrate production more than doubled to 29,302 tons.
For the full year, UG2 feed reached 295,088 tons, underscoring the ramp-up of underground operations.
PGM production also saw substantial gains. The company produced 7,794 ounces of PGM in the fourth quarter, nearly double the 4,015 ounces recorded in Q4 2024. Annual production climbed to 24,365 ounces from just over 8,100 ounces in the prior year, reflecting improved grades and higher throughput.
However, Eastplats faces ongoing financial challenges. Its working capital deficit widened significantly to $56.9m at the end of December 2025, compared with $38.7m a year earlier.
Cash resources dwindled to just $200,000, highlighting the company’s reliance on external funding or improved cash flow generation to sustain operations and expansion plans.
A notable operational shift during the year was the cessation of the CRM retreatment project in March 2025 after the exhaustion of tailings material. This has increased reliance on underground mining as the primary source of feedstock.
Looking ahead, Eastplats has outlined an ambitious set of targets for 2026. These include further ramping up Zandfontein underground operations, securing capital for a full-scale reopening, upgrading processing circuits to improve recovery rates, and advancing environmental studies for its Mareesburg and Spitzkop projects.
The company is also seeking to resolve outstanding matters related to the retreatment project and explore opportunities to monetise non-core assets, particularly on the eastern limb of the Bushveld Complex, where projects remain on care and maintenance.
If successful in its ramp-up strategy, Eastplats expects both PGM and chrome production to increase in 2026. Management believes this, combined with operational efficiencies, could place the company on a path toward profitability, provided market conditions remain supportive and funding constraints are addressed.
BUSINESS REPORT