The Company’s strategy of continuing to develop its underground operations will allow it to benefit from tightening global environmental regulations which will drive the increase in demand for PGMs, particularly palladium and rhodium.
Eastplats is advancing its PGM Projects in South Africa, which is home to most of the world’s PGM-bearing ore. These projects will benefit from the projected market demand and strong PGM metal price as well as our competitive costs compared with our peers. Eastplats expects PGMs to account for 65% of its revenue by 2025.
Chrome, which is used in the production of stainless steel and other alloys, is also expected to see an increase in demand amid globalization and increased infrastructure development.
The restart of the Zandfontein underground mine, which has significant existing surface and underground infrastructure, has seen a total investment of over USD $632m (over $106m since 2016).
The Company is also continuing assessment work in relation to further opportunities in the Zandfontein, Crocette and Spitzkop ore bodies while still advancing environmental work at the Mareesburg project.
Eastplats is at the start of our plans to become a low-cost mid-tiered PGM and chrome producer and expect to see a significant improvement in our earnings per share and operating income in line with our strategy of controlling sales to customers and focusing on cash flow.
We believe that a successful and profitable mine is characterised by more than its operational activities. We are committed to providing a safe working environment for all employees and, through our social and labor plans and corporate social investment programmes in our host communities, our involvement goes way beyond mining.