Auditors Raise Red Flags Over Eastplats’ Financial Survival
Independent auditors have cast serious doubt on Eastplats’ ability to continue operating, citing unresolved financial uncertainties at the JSE-listed platinum miner. The going concern warning comes amid operational setbacks and liquidity challenges at its flagship Crocodile River Mine.
Critical Concerns
- R218 million in current liabilities exceed assets
- 12-month cash runway without additional funding
- Platinum price slump compounds operational losses
Operational Challenges
- 47% drop in refined metal output (2023 vs 2022)
- Delayed restart of critical processing circuits
- Mounting maintenance backlog at aging facilities
Management Response
CEO Terence Goodlace insists turnaround plans will:
✓ Secure emergency funding within 60 days
✓ Restart full processing capacity by Q3
✓ Renegotiate creditor payment terms
The warning underscores the platinum sector’s struggles as PGM prices hover near five-year lows. Eastplats shares fell 22% following the auditor’s report.
