Eastern Platinum Limited Reports Results and Announces Restatement of Comparatives FOR the First Quarter of 2024
1080 - 1188 West Georgia St.
Vancouver, BC Canada V6E 4A2
NEWS RELEASE
EASTERN PLATINUM LIMITED REPORTS RESULTS AND ANNOUNCES
RESTATEMENT OF COMPARATIVES FOR THE FIRST QUARTER OF 2024
Vancouver, British Columbia , May 14, 2024 – Eastern Platinum Limited (TSX: ELR)(JSE:EPS)
(“Eastplats” or the “ Company”) is pleased to report that it has filed its condensed interim
consolidated financial statements for the three months ended March 31, 2024 and the
corresponding management’s discussion and analysis (“MD&A”). Below is a summary of the
Company’s financial results for the first quarter of 2024 (“Q1 2024”) in comparison to the restated
period in 2023 (“Restated Q1 2023”) (all amounts in USD unless specified):
• Revenue for Q 1 2024 decreased to $ 15.7 million ( Restated Q1 2023 - $18.0 million),
representing a $2.3 million or -12.9% decrease.
• Mine operating income increased by $ 1.8 million (or 49.5%) to $ 5.3 million in Q 1 2024
(Restated Q1 2023 - $3.5 million) while gross margin increased from 19.6% in Restated
Q1 2023 to 33.7% in Q1 2024.
• Operating loss was $0.03 million in Q1 2024 compared to an operating income of $1.8
million in Restated Q1 2023.
• Net loss attributable to equity shareholders was $0.9 million ($0.00 loss per share) in Q1
2024 versus net loss attributable to equity shareholders of $ 0.4 million ($0.00 loss per
share) in Restated Q1 2023. The decrease in Q1 2024 net income was largely attributable
to the increase in overall operating costs associated with the soft restart of the Zandfontein
underground operations located at the Crocodile River Mine (“CRM”) in South Africa and
foreign exchange losses incurred in the period due to the strengthening of the U.S. dollar.
• The Company had a working capital deficit (current assets less current liabilities) of $16.7
million as at March 31, 2024 (December 31, 2023 – working capital deficit of $15.5 million)
and short-term cash resources of $ 20.7 million (consisting of cash, cash equivalents and
short-term investments) (December 31, 2023 – $21.3 million)
Wanjin Yang, Chief Executive Officer and President of Eastplats commented, “We are encouraged
by the first quarter results despite the challenging PGM market price environment. Our focus is
on chrome recoveries from the remaining tailings resource as we approach the end of the
retreatment project. We expect to start earning chrome and PGM revenue from the Zandfontein
underground section at the CRM in June as we ramp up run-of-mine tonnages.”
Prior Period Error - Restatement of Comparatives
Certain 2023 comparative numbers in the condensed interim consolidated financial statements
and corresponding MD&A ha ve been restated to correct an error in the condensed interim
consolidated financial statements for the three months ended March 31, 2023, that was identified
subsequent to the period-end and is discussed below.
As discussed in the previous news release of May 3, 2024, i n connection with the preparation of
the Company’s consolidated financial statements for the year ended December 31, 2023, an error
was identified in the recognition of revenue related to a chrome concentrate sales transaction in
fourth quarter of 2 022 which impact ed the Company’s previously filed audited consolidated
financial statements for the year ended December 31, 2022 and its unaudited condensed interim
consolidated financial statements for the three months ended March 31, 2023. Chrome
concentrate revenue is recognized when control is transferred to the buyer and payment is
considered probable. A sales transaction that was included in deferred revenue at the end of 2022
and recognized as revenue in the first quarter of 2023 should have been recognized in fourth
quarter of 2022 based on the fact that the Company had met all of its required performance
obligations at the time, as supported by the underlying contract and bill of lading. Previously
reported revenue for the first quarter of 2023 was overstated by $4 .0 million, with associated
errors in production costs, accumulated other comprehensive loss and deficit.
The following table presents the effects of the restatement on the individual line items within the
Company’s unaudited Condensed Interim Consolidated Statement of Income (Loss), Condensed
Interim Statement of Comprehensive Income (Loss) and Condensed Interim Statement of
Financial Position, expressed in thousands of U.S. dollars, except for per share amounts. The
corrected prior period error had no impact on cash flows.
Three months ended March 31, 2023
As previously
reported Adjustment As restated
$ $ $
Revenue 22,058 (4,021) 18,037
Production costs (15,360) 2,324 (13,036)
Mine operating income (loss) 5,233 (1,697) 3,536
Operating income (loss) 3,497 (1,697) 1,800
Net income (loss) for the period 1,343 (1,697) (354)
Net income (loss) attributable to equity
shareholders of the Company 1,344 (1,697) (353)
Earnings (loss) per share, basic and diluted 0.01 (0.01) 0.00
Comprehensive income (loss) for the period (2,267) (1,766) (4,033)
As at March 31, 2023
As previously
reported Adjustment As restated
$ $ $
Accumulated other comprehensive loss (321,406) (13) (321,419)
Deficit (850,900) 13 (850,887)
The Company’s audited consolidated financial statements for the year ended December 31, 2023
reflected these changes. The unaudited interim consolidated financial statements and related
financial information for the affected period contained in the Company ’s unaudited interim filings
prior to May 13, 2024 should no longer be relied upon.
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 months ended March
31, 2024; and
• Management’s discussion and analysis for the three months ended March 31, 2024.
The condensed interim consolidated financial statements for the three months ended March 31,
2024 are available for download at https://www.eastplats.com/investors/quarterly-reports/F2024/
and are also available on the JSE’s website at:
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/EPS/Q124.pdf.
Operations
The Company derived revenue from the processing of PGM and chrome concentrates during Q1
2024 and Q1 2023 . Eastplats’ majority of revenue (approximately 93% for Q 1 2024) is from
chrome concentrate sales to third parties.
Summary of chrome production for the three months ended March 31, 2024 and 2023:
Q1 2024 Q1 2023
Total Tailings Feed (Tons) 385,299 631,954
Average grade Cr
concentrate 38.57% 38.65%
Tons of Cr concentrate 79,882 147,090
Summary of PGM production for the three months ended March 31, 2024 and 2023:
Q1 2024 Q1 2023
Tons of PGM
concentrate 945 1,156
PGM ounces
produced (6E)* 1,475 2,134
*PGM 6E ounces are estimates until final exchanges and umpire results have been concluded, which can
take up to three months.
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 from the Barplats Zandfontein tailings dam and mining and processing ore from the
Zandfontein underground section to both produce PGM and chrome concentrates.
For further information, please contact:
EASTERN PLATINUM LIMITED
Wylie Hui, Chief Financial Officer and Corporate Secretary
[email protected] (email)
(604) 568-8200 (phone)
Cautionary Statement Regarding Forward-Looking Information
This news release contains “forward -looking statements” or “forward -looking information” (collectively
referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation.
Such forward -looking statements include, without limitation, forecasts, estimates, expectations and
objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Company. Forward-looking statements are statements that are not
historical facts and are generally, but not always, identified by the words “will ,” “plan,” “intends,” “may,”
“could,” “expects,” “anticipates” and similar expressions. Further disclosure of the risks and uncertainties
facing the Company and other forward -looking statements are discussed in the Company’s most recent
Annual Information Form available under the Company’s profile on www.sedarplus.ca.
In particular, this press release contains, without limitation, forward -looking statements pertaining to :
expected earnings from chrome and PGM revenue from the Zandfontein underground section at the CRM
in June 2024 and ramping-up the Zandfontein underground operations. These forward-looking statements
are based on assumptions made by and information currently available to the Company. Although
management considers these assumptions to be reasonable based on information currently available to it,
they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and
uncertainties and readers are cautioned not to place undue relian ce on these statements as a number of
factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations,
estimates and intentions expressed in such forward-looking statements. These factors include, but are not
limited to, unanticipated problems that may arise in the Company’s production processes, commodity
prices, lower than expected grades and quantities of resources, need for additional funding and availability
of such additional funding on acceptable terms, econo mic conditions, currency fluctuations, competition
and regulations, legal proceedings and risks related to operations in foreign countries.
All forward-looking statements in this news release are expressly qualified in their entirety by this cautionary
statement, the “ Cautionary Statement on Forward -Looking Information ” section contained in the
Company’s most recent Management’s Discussion and Analysis available under the Company’s profile on
www.sedarplus.ca. The forward-looking statements in this news release are made as of the date they are
given and, except as required by applicable securities laws, the Company disclaims any intention or
obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.