Thursday May 15, 02:38 PM
Eastern Platinum swings to Q1 net profit $19.96 mln vs loss $9.94 mln
LONDON (Thomson Financial) - Eastern Platinum Ltd (ELR.TO - news) . swung to a record first-quarter profit on higher production and revenues.
Net earnings moved to $19.96 million, from a net loss of $9.94 million a year earlier, but missed expectations for a profit of 24.5 million from Investec Securities.
However, sales jumped 80 percent to $56.4 million, beating Investec (LSE: INVP.L - news) 's forecasts, on previously announced output of 27,825 ounces.
Production grew in the quarter despite South Africa power disruptions in late January, which the company estimated cut output at the mine by around 6,000 PGM ounces.
Eastplats reduced its operating cash costs in the quarter by 1 pct year-on-year to $698 per ounce, and from $774 per ounce the previous quarter.
At March 31, 2008, the company said its cash position - including cash and cash equivalents and short-term investments - was $169.94 million versus $189.86 million in the December quarter.
'Mining rates, underground development rates and recovery rates are all up, and with sustained high PGM prices, we look forward to continued profitability at the Crocodile River mine,' said chief executive and president Ian Rozier.
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