Vancouver-headquartered Eastern Platinum Ltd. (TSX:ELR) reported a 47% increase in second quarter revenue, turning a sizeable profit for the period ending June 30, 2010.
Second quarter revenue rose to $36.6 million from $24.8 million leading to a net profit of $2.5 million compared with a net loss of $744,000 for the same period last year.
Higher prices for the metals it produces from its South African mines rose 49% for the period to $1,015 per ounce from $679 per ounce in the second quarter of 2009.
That helped boost earnings from mining operations by 88%, which contributed to the company’s stronger quarterly results in addition to a 36% cut in general and administrative expenses during the period.
Operating profit rose to $2.2 million compared with an operating loss of $1.1 million.
Production, however, fell 8% in the second quarter to 30,820 ounces from 33,383 ounces, primarily due to the dismissal of 15 contract mining teams in May.
The company expects the third quarter to be more profitable once new crews are fully trained and production increases.
Eastern Platinum’s share price range during the past week: between $1.08 and $1.15; 52-week high: $1.72; 52-week low: $0.46.