Eastern Platinum (ELR) AI Stock Analysis

• Market Cap: C$49.81M
• Dividend Yield: N/A
• Average Volume (3M): 148.62K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.05
• Revenue Growth: -33.23%
• EPS Growth: -438.90%
• Country: CA
• Employees: 1,805
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Other Precious Metals
• EPS (TTM): -0.01
• Shares Outstanding: 203,291,430
• 10 Day Avg. Volume: 127,152
• 30 Day Avg. Volume: 148,623
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.50
• Price Target Upside: 150.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by poor financial performance and weak technical indicators, both suggesting significant challenges. Valuation metrics further underscore the unattractive investment profile. However, recent corporate events indicate potential for future operational improvements, which slightly mitigates the negative outlook.

Eastern Platinum Business Overview & Revenue Model

Company Description

Eastern Platinum Limited (ELR) is a mining company focused on the exploration, development, and production of platinum group metals (PGMs). The company primarily operates in South Africa, where it holds significant interests in several PGM properties. Eastern Platinum's core products include platinum, palladium, and rhodium, which are extracted from its mining operations and sold to global markets.

How the Company Makes Money

Eastern Platinum generates revenue through the mining and sale of platinum group metals. The company operates its mines to extract PGMs, which are then processed and sold to industrial customers, refineries, and other end-users. Key revenue streams include the sale of platinum, palladium, and rhodium, which are used in various industries such as automotive, jewelry, and electronics. Additionally, Eastern Platinum may engage in partnerships or joint ventures with other mining companies to optimize its operations and expand its market reach, although specific partnerships are not detailed here. The company's earnings are influenced by factors such as global metal prices, production efficiency, and operational costs.

Eastern Platinum Financial Statement Overview

Summary

Eastern Platinum faces significant financial challenges, with declining revenues and profitability, negative cash flows, and reduced equity. While leverage remains low, indicating limited debt pressure, the company needs to address its revenue generation and cost control to improve its financial health.

Income Statement

The income statement shows declining revenues from $106.94M in 2023 to $61.60M TTM, with a negative gross profit margin in the TTM period, indicating cost management issues. The net profit margin is also negative, reflecting ongoing losses. Revenue growth has been negative in recent periods, highlighting a downward trend. EBIT and EBITDA margins are negative, showing operating inefficiencies.

Balance Sheet

The balance sheet reveals a relatively stable equity position with a debt-to-equity ratio of 0.04 TTM, indicating low leverage. However, declining stockholders' equity from 2023 to TTM signals potential challenges. The equity ratio at 43.5% TTM suggests moderate financial stability, but the reduction in cash reserves could be a concern.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, reflecting cash management difficulties. The operating cash flow to net income ratio is negative due to consistent losses. The free cash flow to net income ratio is also negative, indicating insufficient cash generation to cover losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.51M	106.94M	49.83M	68.20M	56.14M
Gross Profit	823.00K	35.63M	5.93M	9.62M	5.55M
EBITDA	-7.48M	23.48M	6.20M	9.10M	859.00K
Net Income	-12.78M	13.76M	-2.50M	-2.71M	-9.40M
Balance Sheet
Total Assets	157.68M	160.77M	155.60M	162.78M	162.99M
Cash, Cash Equivalents and Short-Term Investments	3.13M	21.35M	2.45M	6.15M	1.77M
Total Debt	2.57M	1.48M	5.11M	3.66M	4.56M
Total Liabilities	83.81M	73.11M	84.17M	82.43M	81.66M
Stockholders Equity	74.28M	88.08M	71.87M	122.48M	125.58M
Cash Flow
Free Cash Flow	-20.46M	16.25M	-8.25M	-5.12M	-912.00K
Operating Cash Flow	-4.43M	18.89M	-5.42M	890.00K	1.56M
Investing Cash Flow	-12.09M	-5.20M	3.30M	-8.12M	-1.75M
Financing Cash Flow	1.12M	1.37M	2.32M	7.61M	540.00K

Eastern Platinum Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELR, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.26, and above the 200-day MA of 0.18, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 31.83 is Neutral, neither overbought nor oversold. The STOCH value of 26.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ELR.

Eastern Platinum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUC	67 Neutral	C$100.10M	1.39	19.39%	―	15.28%	―
ORV	59 Neutral	C$72.41M	25.59	-5.13%	―	17.55%	-475.00%
BRC	47 Neutral	C$197.80M	―	-164.77%	―	―	-168.10%
SLVR	47 Neutral	C$246.67M	―	-5.23%	―	―	-33.33%
Sector *	44 Neutral	C$925.44M	-8.84	-0.23%	2.69%	24.64%	-41.43%
ELR	42 Neutral	C$49.81M	27.27	-31.22%	―	-33.23%	-438.90%
PTM	33 Underperform	C$235.52M	―	-14.92%	―	―	28.30%

Eastern Platinum Corporate Events

Eastern Platinum Reports Q2 2025 Financial Decline and Secures Increased Credit Facility

Eastern Platinum Limited reported a significant decline in revenue and profitability for the second quarter and first half of 2025 compared to the previous year, with revenue decreasing by 43.1% and 26.1% respectively. The company also announced an increase in its credit facility with Investec Bank to support the restart of its Zandfontein underground section, which is expected to enhance production capabilities and shift revenue focus towards PGM processing.

Eastern Platinum Limited Announces Board Resignation

Eastern Platinum Limited announced the resignation of Dr. Bielin Shi from its Board of Directors, effective June 18, 2025. Dr. Shi, who joined the board in 2016, contributed significantly as the Chair of the Safety, Health, Environment, and Risk Committee. The resignation is in line with the company’s Majority Voting Policy. This change in the board may have implications for the company’s governance and strategic direction, particularly in areas related to safety and environmental risk management.

Eastern Platinum Announces 2025 Shareholder Meeting Results

Eastern Platinum Limited held its 2025 Annual General and Special Meeting of Shareholders, where a significant 60.51% of outstanding common shares were voted. All proposed directors were elected, although Dr. Bielin Shi received more withheld votes than votes in favor, prompting his resignation, pending board acceptance. The meeting also approved the continuation of the company’s Stock Option Plan for three years and re-appointed Davidson & Company LLP as auditors.

Eastern Platinum Limited Reports Cybersecurity Breach with No Operational Disruption

Eastern Platinum Limited recently experienced a cybersecurity incident affecting its internal IT systems, which was detected on May 27, 2025. The company promptly implemented containment measures and is collaborating with cybersecurity experts to assess the incident’s scope and undertake necessary remedial actions. Despite the breach, Eastplats’ business operations remain unaffected. The company is reviewing disclosed files to ensure compliance with legal obligations and protect its commercial interests. This incident has been reported to authorities, and Eastplats is committed to enhancing its data security to maintain stakeholder trust.

Eastern Platinum Faces Challenges in Q1 2025 Amid Operational Ramp-Up

Eastern Platinum Limited reported a challenging first quarter in 2025, with a revenue decrease to $14.8 million and a significant increase in net loss attributable to equity shareholders, largely due to the restart of underground operations at the Crocodile River Mine. Despite the financial setbacks, the company is focused on ramping up underground production to improve future results, with a majority of its revenue derived from chrome concentrate sales. The completion of the Retreatment Project and ongoing processing of higher-grade UG2 ore are expected to enhance production efficiency.