JOHANNESBURG (Mining Insight News) – Positive first-quarter mine operating income has provided encouragement for South African platinum group metals (PGM) and chrome producer Eastplats, as the company continues to navigate operational challenges while focusing on efficiency improvements to boost production.

The Canada-based miner, listed on both the Toronto Stock Exchange and the Johannesburg Stock Exchange, reported a $5.4 million increase in first-quarter mine operating income from its Crocodile River mine PGM and chrome operations located on the western limb of South Africa’s Bushveld Complex.

During the three months ending March 31, Eastplats recorded six-element PGM production of 4,751 ounces, marking a significant rise from the 3,175 ounces produced during the same period last year. Chrome concentrate production also showed notable improvement, reaching 16,757 tonnes, compared to 9,761 tonnes in the first quarter of 2025.

Despite these gains, the company reported a 6.8% decline in first-quarter revenue to $13.8 million. However, gross margins improved significantly to 4.8%, a marked turnaround from the negative 31.6% recorded in the corresponding period last year.

The improved performance was attributed to stronger PGM sales and the successful transition from tailings feed processing to run-of-mine (RoM) upper group two (UG2) ore sourced from the Zandfontein underground section of the Crocodile River mine.

“We had a challenging first quarter as monthly RoM processing tonnages at Crocodile River mine were lower than targeted. That said, we’re encouraged by the positive mine operating income and continue to focus on operational efficiencies to improve PGM and chrome production,” Eastplats CEO and President, Wanjin Yang, said in a media release to Mining Insight News.

Eastplats continues to derive the majority of its income from PGM concentrate sales, with 81% of first-quarter 2026 revenue generated through offtake agreements with Impala Platinum, as production at the Crocodile River mine continues to ramp up.

The company also reported an improvement in its bottom line, with net loss attributable to equity shareholders narrowing to $4.1 million, compared to $6.9 million in the same period last year.

South Africa’s PGM Sector Shows Strong Recovery

Meanwhile, the Minerals Council South Africa reported on May 15 that South Africa’s PGM production increased by 10.5% in March 2026 compared to March 2025, supported by operational stability and recovering market demand.

PGMs also emerged as the largest contributors to South Africa’s mineral sales, accounting for a significant share of the country’s R242 billion mineral sales recorded during the first quarter of 2026.

Commodity prices also strengthened considerably in March, with rhodium climbing 105.7% to $11,285/oz, platinum rising 109.6% to $2,054/oz, and palladium increasing 62.4% to $1,556/oz.

“The sharp increase in mineral sales earnings highlights the sector’s potential to catalyse inclusive growth in South Africa. With supportive policy and regulatory frameworks, the industry could achieve even greater outcomes,” the Minerals Council South Africa said in a statement to Mining Insight News.