EASTERN PLATINUM LIMITED REPORTS ANNUAL RESULTS FOR 2024 AND PROVIDES ITS TARGETS FOR 2025
VANCOUVER, BC, March 28, 2025 /CNW/ - Eastern Platinum Limited (TSX:ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to report that it has filed its Audited Consolidated Financial Statements for the fiscal year ended December 31, 2024 and the corresponding Management's Discussion and Analysis and Annual Information Form. Below is a summary of the Company's financial results for the fourth quarter of 2024 ("Q4 2024") and for the fiscal year ended December 31, 2024 ("FY2024") (all amounts in USD unless specified) in comparison to the same periods in 2023 ("Q4 2023" and "FY2023", respectively):
Revenue for Q4 2024 decreased to $17.0 million (Q4 2023 - $30.5 million), representing a -44.3% decrease. Revenue for FY2024 decreased to $62.5 million (FY2023 - $106.9 million), representing a -41.5% decrease.
Mine operating income decreased by $15.7 million to a loss of -$7.9 million in Q4 2024 (Q4 2023 mine operating income - $7.8 million), resulting in a gross margin of -46.2% in Q4 2024 as compared to 25.5% in Q4 2023. Mine operating income in FY2024 decreased by $30.8 million to $0.8 million (FY2023 - $31.6 million), resulting in a gross margin of 1.3% in FY2024 as compared to 29.5% in FY2023.
Operating loss was -$8.6 million in Q4 2024 as compared to an operating income of $2.8 million in Q4 2023. Operating income decreased by $31.2 million to a loss of -$12.7 million in FY2024 from an operating income of $18.5 million in FY2023, a -168.6% decrease in operating income.
Net loss attributable to shareholders was -$11.9 million ($0.05 loss per share) in Q4 2024 versus $3.3 million ($0.02 earnings per share) in Q4 2023. The decrease in net income was largely attributable to the significant decrease in third-party chrome concentrate sales in the period.
Net loss attributable to shareholders decreased to -$12.8 million ($0.06 loss per share) in FY2024 compared to a net income attributable to shareholders of $13.8 million ($0.08 earnings per share) in FY2023. The decrease in income during FY2024 is mainly attributable to the decreased revenue and gross margins generated by remining and processing the Company's underground and tailings resources at the Crocodile River Mine ("CRM") to produce chrome concentrate and platinum group metals ("PGM") concentrate, respectively.
The Company had a working capital deficit (current assets less current liabilities) of $38.7 million as at December 31, 2024 (December 31, 2023, working capital deficit of $15.5 million) and short-term cash resources of $3.1 million (consisting of cash, cash equivalents, and short-term investments)(December 31, 2023 - $21.3 million). The Company used its profits earned in FY2023 towards the ramp up of operations at the Zandfontein underground section of the CRM.
Wanjin Yang, Chief Executive Officer and President of Eastplats commented, "We faced challenges as we restarted underground operations at the Crocodile River Mine during fiscal 2024. As the Retreatment Project ended in the first quarter of 2025, it is critical that we focus on improving production results while being mindful of costs and capital expenditures, however, we are confident that PGM and chrome prices will rebound in 2025, which will help us achieve profits again."
Operations
The Company generated revenue from processing PGM and chrome concentrates during Q4 2024 and FY2024. Eastplats' majority of revenue (approximately 74% and 87% for Q4 2024 and FY2024, respectively) is from chrome concentrate sales.
Since July 1, 2022, chrome revenue has been recognized only through third-party sales of chrome concentrate. The Company also derives PGM revenue under the PGM offtake agreement with Impala Platinum Limited ("Impala"). The Retreatment Project ended during the ...
