VANCOUVER, BC, Aug. 13, 2026 /CNW/ -- 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 six months ended June 30, 2026 and the corresponding management's discussion and analysis ("MD&A"). Below is a summary of the Company's financial results for the second quarter of 2026 ("Q2 2026") and for the six months ended June 30, 2026 ("YTD 2026") in comparison to the same respective period in 2025 ("Q2 2025" and "YTD 2025") (all amounts in USD unless specified):
-- Revenue for Q2 2026 decreased to $7.9 million (Q2 2025 - $10.7 million),
representing a $2.8 million or -25.8% decrease. Revenue for YTD 2026
decreased to $21.7 million (YTD 2025 -- $25.5 million), representing a
$3.8 million or 14.8% decrease.
-- Mine operating income decreased by $4.6 million to -$4.2 million in Q2
2026 (Q2 2025 -- $0.36 million) while gross margin decreased from 3% in
Q2 2025 to -53% in Q2 2026. The decrease was mainly due to decrease in
platinum-group-metal ("PGM") sales and higher production costs. Mine
operating income in YTD 2026 increased by $0.7 million (or 17.2%) to mine
operating loss of $3.6 million (YTD 2025 -- $4.3 million), resulting from
a increased gross margin of -16.4% in YTD 2026 from -16.9% in YTD 2025.
-- Operating loss was $7.9 million in Q2 2026 compared to a loss of $3
million in Q2 2025, primarily due to lower sales volume and higher
production costs. Operating loss was $10.2 million in YTD 2026 compared
to a loss of $11.1 million in YTD 2025.
-- Net loss attributable to equity shareholders was $6.1 million ($0.03 loss
per share) in Q2 2026 versus net loss attributable to equity shareholders
of $1.8 million ($0.01 loss per share) in Q2 2025. The increase in net
loss was primarily due to the decrease in overall sales and higher
production costs incurred at the CRM.
-- Net loss attributable to equity shareholders was $10.2 million ($0.05
loss per share) in YTD 2026 compared to net loss attributable to equity
shareholders of $8.7 million ($0.04 loss per share) in YTD 2025. The
decrease of YTD 2026 net income was mainly attributable to the same
reasons as described above for the quarter.
-- The Company had a working capital deficit (current assets less current
liabilities) of $67.9 million as at June 30, 2026 (December 31, 2025 --
working capital deficit of $56.9 million) and short-term cash resources
of $362,000 (consisting of cash and cash equivalents) (December 31, 2025
-- $177,000).
Charlie Liu, Interim Chief Executive Officer and President of Eastplats commented, "We had a challenging second quarter as monthly run-of-mine processing tonnages at the Crocodile River Mine were lower than targeted. We will continue to focus on operational efficiencies to improve PGM and chrome production."
Operations
The Company derived revenue from the processing of PGM and chrome concentrates at the CRM. Eastplats' majority of revenue (approximately 78% and 80% for Q2 2026 and YTD 2026) is from PGM concentrate sales to Impala Platinum Limited under related offtake agreements. This is in line with the Company's expectations as it continues to ramp up production at the CRM.
The Company started processing ROM UG2 ore from the Zandfontein underground section at the CRM during the third quarter of 2024, at higher grades of chrome and PGM recovery, respectively.
Summary of chrome production from underground operations for the three and six months ended June 30, 2026 and 2025:
Q2 2026 YTD 2026 Q2 2025 YTD 2025
Total ROM Feed (tons) 51,160 106,798 75,340 120,287
Average grade Cr concentrate 40.38 % 40.5 % 40.74 % 40.7 %
Tons of Cr concentrate 14,921 31,678 19,768 29,529
Summary of PGM production for the three and six months ended June 30, 2026 and 2025:
Q2 2026 YTD 2026 Q2 2025 YTD 2025
Average 6E grade (grams per ton)* 167 158 151 150
Tons of PGM concentrate 810 1,826 1,401 2,072
PGM ounces produced (6E)* 4,356 9,146 6,781 9,961
(*) PGM 6E grades and ounces are estimates until final
exchanges and umpire results have been concluded,
which can take up to three months.
The Company has filed the following documents, under the Company's profile on SEDAR+ at www.sedarplus.ca:
-- Condensed interim consolidated financial statements for the three and
six months ended June 30, 2026; and
-- Management's discussion and analysis for the three and six months ended
June 30, 2026.
The condensed interim consolidated financial statements for the three and six months ended June 30, 2026 are available for download at:
https://www.eastplats.com/investors/quarterly-reports/F2026/ and are also available on the JSE's website at:
https://senspdf.jse.co.za/documents/2026/JSE/ISSE/EPS/Q226.pdf.
The Company has a primary listing on the Toronto Stock Exchange and a secondary listing on the JSE Limited.
About Eastern Platinum Limited
Eastplats owns directly and indirectly a number of PGM and chrome assets in the Republic of South Africa. All of the Company's properties are situated on the western limb (Crocodile River Mine) and eastern limb (Kennedy's Vale, Spitzkop, Mareesburg) of the Bushveld Complex, the geological environment that hosts approximately 80% of the world's PGM-bearing ore.
Operations at the Crocodile River Mine currently include mining and processing ore from the Zandfontein underground section to both produce PGM and chrome concentrates, respectively.
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will," "plan, " "intends," "may," "could," "expects," "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedarplus.ca.
In particular, this press release contains, without limitation, forward-looking statements pertaining to: improvement of PGM and chrome production results. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in the Company's production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.
All forward-looking statements in this news release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedarplus.ca. The forward-looking statements in this news release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Eastern Platinum Ltd.
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