20:02:44 EDT Sat 11 May 2024
Enter Symbol
or Name
USA
CA



Eastern Platinum Ltd (2)
Symbol ELR
Shares Issued 201,901,426
Close 2023-11-09 C$ 0.09
Market Cap C$ 18,171,128
Recent Sedar Documents

Eastern Platinum earns $3.1-million in Q3 2023

2023-11-10 11:45 ET - News Release

Mr. Wylie Hui reports

EASTERN PLATINUM LIMITED REPORTS RESULTS FOR THE THIRD QUARTER OF 2023

Eastern Platinum Ltd. has filed its condensed interim consolidated financial statements for the three and nine months ended Sept. 30, 2023, and the corresponding management's discussion and analysis. Below is a summary of the Company's financial results for the third quarter of 2023 ("Q3 2023") and for the nine months ended September 30, 2023 ("YTD 2023") (all amounts in USD unless specified) in comparison to the same respective period in 2022 ("Q3 2022" and "YTD 2022"): Revenue for Q3 2023 increased to $21.8 million (Q3 2022 - $3.6 million), representing a $18.2 million or 505.6% increase. Revenue for YTD 2023 increased to $80.5 million (YTD 2022 - $41.5 million), representing a 94.0% increase.Mine operating income increased by $5.1 million (or 268.4%) to $7.0 million in Q3 2023 (Q3 2022 - $1.9 million) while gross margin decreased from 52.5% in Q3 2022 to 32.1% in Q3 2023. Mine operating income in YTD 2023 increased by $16.1 million (or 171.3%) to $25.5 million (YTD 2022 - $9.4 million) and gross margin increased to 31.7% in YTD 2023 from 22.8% in YTD 2022.Operating income was $3.6 million in Q3 2023 compared to an operating loss of $0.9 million in Q3 2022. Operating income improved by $17.4 million to $17.5 million in YTD 2023 from $0.1 million in YTD 2022.Net income attributable to equity shareholders was $3.1 million ($0.02 earnings per share) in Q3 2023 versus net loss attributable to equity shareholders of $6.6 million ($0.05 loss per share) in Q3 2022. The increase in Q3 2023 net income was largely attributable to the significant increase in third party chrome revenue from the sales of chrome concentrate with respect to the Company's Retreatment Project at Barplats Mines (Pty) Limited's tailings storage facility (the "Retreatment Project") located at the Crocodile River Mine ("CRM") in South Africa. Net income attributable to equity shareholders increased to $12.1 million ($0.07 earnings per share) in YTD 2023 compared to net loss attributable to equity shareholders of $2.4 million ($0.02 loss per share) in YTD 2022. The improvement during YTD 2023 is mainly attributable to the increased revenue and positive gross margins generated by the significant increase in third party chrome revenue as mentioned above.The Company had a working capital deficit (current assets less current liabilities) of $17.1 million as at September 30, 2023 (December 31, 2022 - working capital deficit of $39.5 million) and short-term cash resources of $17.3 million (consisting of cash, cash equivalents and short-term investments) (December 31, 2022 - $2.4 million).

Operations

The Company continues to produce chrome concentrate from its Retreatment Project. Eastplats has also commenced blasting activities at the CRM, which initiated the soft restart of the Zandfontein underground section.

The Company also derives revenue from platinum group metals ("PGM") concentrate sales under a PGM offtake agreement with Impala Platinum Limited ("Impala"). The Company produces PGMs from further processing tailings material following the production of chrome concentrates.

The majority of the Company's revenue (100% for Q3 2023) has been generated from chrome concentrate sales to third parties since the fourth quarter of 2022.

While PGM prices have decreased from the prior year, chrome prices have increased during the same period, which has driven revenue and mine operating income growth for the Company. However, chrome revenue is expected to wind down into 2024 as the Retreatment Project approaches its completion date. When that occurs, the PGM Circuit D and PGM Main Circuit B (collectively, the "PGM Circuits") will become the main source of revenue as the Company ramps up production at the Zandfontein underground section of the CRM.

Wanjin Yang, Chief Executive Officer and President commented, "Although chrome production decreased this quarter, we are still encouraged by revenue generated from the tailings storage facility. As we have commenced blasting activities at the Zandfontein underground section of the Crocodile River Mine, we expect to process the underground ore in the first quarter of 2024."

Outlook

The Company's targets for 2023 remain as follows:Operate and optimize the PGM Circuits (ongoing);Raise additional capital to support the full re-opening of Zandfontein underground operations at the CRM (ongoing);Operate and optimize the Retreatment Project (ongoing);Complete the optimization of the chrome recovery plant for the Retreatment Project (ongoing);Assess the value for continued use of the chrome recovery plant after optimization (initiated);Complete the second phase of the tailings storage facility ("TSF") capital works program (ongoing); Advance the Mareesburg project (located on the eastern limb) environmental work to complete the Environmental Impact Assessment ("EIA") and other environmental studies and amendments (ongoing);Continue prospecting and assessment work in relation to Zandfontein, Crocette and Spitzkop ore bodies (ongoing);Commission main plant circuit A for underground operations; andUpdate other capital assessments upon completion of additional capital fundraising.

The Company will update its targets for 2024 in due course.

Whistleblower Special Committee Update

The Board has formed a special committee (the "Committee") comprised of two independent directors to conduct an investigation, review and analysis of unproven whistleblower allegations, including allegations of undisclosed related party transactions pertaining to the sale of chrome concentrate at discounted prices (the "Allegations") as previously announced (see news release of April 24, 2023). Further to the news releases dated May 12, 2023, June 20, 2023, and August 11, 2023, the Company reports that the Committee's investigation has advanced significantly this quarter. The Committee's work in retrieving and reviewing relevant documents, with the assistance of independent counsel and a third party e-discovery specialist, is nearing completion. Over 135,000 documents comprising of emails and other documents from the Company's document management system have been collected and uploaded into an e-discovery and legal search platform. Various searches have been implemented and relevant documents reviewed. Interviews with key members of management have occurred and the Committee anticipates conducting further interviews with material persons this month, consistent with the Committee's mandate. A report of the Committee's findings will be provided to the Board, which the Committee anticipates doing before the end of the year.

Investor Webinar

Eastplats is pleased to host an investor webinar on Wednesday, November 22, 2023 at 1:00 p.m. PT / 4:00 p.m. ET. Wanjin Yang, Eastplats CEO, and Wylie Hui, Eastplats CFO, will provide a corporate and operational update, including development plans for Eastplats' Zandfontein underground section and upcoming catalysts.

A recorded version of this webinar will be available on November 29, 2023 on the Eastplats website. Following the webinar, Eastplats will respond to investor questions during a Q&A session. For more information or to register for this webinar, please visit:

https://www.eastplats.com/investors/presentations/2023/.

The Company has a primary listing on the Toronto Stock Exchange and a secondary listing on the JSE Limited.

The Company has filed the following documents, under the Company's profile on SEDAR+ at www.sedarplus.ca:Condensed interim consolidated financial statements for the three and nine months ended September 30, 2023; andManagement's discussion and analysis for the three and nine months ended September 30, 2023.

The condensed interim consolidated financial statements for the three and nine months ended September 30, 2023 are available for download at https://www.eastplats.com/investors/quarterly-reports/F2023/ and are also available on the JSE's website at:

https://senspdf.jse.co.za/documents/2023/JSE/ISSE/EPS/Q323.pdf.

About Eastern Platinum Limited

Eastplats owns directly and indirectly a number of PGM and chrome assets in the Republic of South Africa. All of the Company's properties are situated on the western limb (Crocodile River Mine) and eastern limb (Kennedy's Vale, Spitzkop, Mareesburg) of the Bushveld Complex, the geological environment that hosts approximately 80% of the world's PGM-bearing ore.

Operations at the Crocodile River Mine currently include re-mining and processing its tailings resource to produce PGM and chrome concentrates from the Barplats Zandfontein tailings storage facility.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.