VANCOUVER - Eastern Platinum Ltd. swung to a loss in the third quarter as revenue dropped 40 per cent amid lower metals prices and fewer ounces sold.
The company (TSX:ELR), which reports in U.S. dollars, said Wednesday its loss attributable to equity shareholders totalled US$5 million or a penny per share, a reversal from a year ago when it posted a profit of $1.4 million or nil per share.
Revenue for the Vancouver-based company with mines in various provinces in South Africa, fell to $19.9 million from $31.5 million. About half of the company's platinum production goes to Europe, which is mired in economic uncertainty over government debt problems in many eurozone countries.
EastPlats said Wednesday the amount of platinum group metals sold in the July-September period decreased 21 per cent to 21,273 ounces from 26,955 ounces in the same 2011 period. The average delivered price in U.S. dollars per ounce slipped 18 per cent to US$896 from $1,088.
At the end of the quarter, the company had a cash position of $135.6 million, down more than 50 per cent from $250.8 million it had at the end of December.
Shares of Eastern Platinum were off 1.5 cents or 8.82 per cent at 15.5 cents in midday trading Wednesday on the Toronto Stock Exchange.