Eastern Platinum (ELR) AI Stock Analysis

• Market Cap: C$57.71M
• Dividend Yield: N/A
• Average Volume (3M): 276.44K
• Price to Earnings (P/E): 27.3
• Beta (1Y): -0.11
• Revenue Growth: -36.80%
• EPS Growth: -253.47%
• Country: CA
• Employees: 1,805
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Other Precious Metals
• EPS (TTM): -0.05
• Shares Outstanding: 202,491,420
• 10 Day Avg. Volume: 178,621
• 30 Day Avg. Volume: 276,439
• PEG Ratio: 1.06
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.78
• Enterprise Value/Market Cap: 0.30
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 21.04
• Enterprise Value/Ebitda: 0.56
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: C$0.50 ▲(78.57%Upside)

Eastern Platinum's overall stock score reflects significant financial challenges, particularly in profitability and cash flow management. However, technical indicators show positive momentum, providing some optimism. The valuation remains unattractive due to the negative P/E ratio, but recent corporate events indicate potential for strategic improvements.

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) in South Africa. The company operates primarily through its flagship asset, the Crocodile River Mine located on the western limb of the Bushveld Complex, one of the world's largest PGM deposits. Eastern Platinum is involved in the mining and processing of PGMs, including platinum, palladium, rhodium, and gold, which are essential for various industrial applications and the automotive industry.

How the Company Makes Money

Eastern Platinum makes money through the extraction and sale of platinum group metals (PGMs) from its mining operations in South Africa. The company's primary revenue stream comes from the sale of these metals to international markets, where they are used in automotive catalytic converters, jewelry, electronics, and other industrial applications. The company may also generate revenue through strategic partnerships and off-take agreements with other mining and metals companies, which help secure markets for its products. Additionally, fluctuations in global metal prices, exchange rates, and operational efficiencies can significantly impact Eastern Platinum's earnings.

Eastern Platinum Financial Statement Overview

Summary

Eastern Platinum's financial performance is weak, characterized by declining revenues and negative profitability metrics, including negative EBIT and net profit margins. Although the balance sheet shows low leverage, the negative free cash flow is concerning.

Income Statement

Eastern Platinum's income statement reveals significant challenges. TTM revenue has dropped considerably from the previous year, resulting in a negative revenue growth rate. The company is experiencing negative EBIT and net profit margins, indicating operational and profitability issues. Gross profit margin is also very low, reflecting cost management challenges.

Balance Sheet

The balance sheet shows a moderate position with a debt-to-equity ratio of 0.03, indicating low leverage. However, the equity ratio is around 47%, suggesting a balanced capital structure. Return on equity is negative due to net losses, highlighting profitability challenges.

Cash Flow

The cash flow statement shows negative free cash flow for the TTM, reflecting cash management difficulties. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. However, the company managed to maintain some level of operating cash flow in previous years.

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: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.19, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 66.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ELR.

Eastern Platinum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUC	69 Neutral	C$104.18M	1.54	19.74%	―	14.23%	―
ORV	62 Neutral	C$75.14M	20.87	4.66%	―	17.92%	―
ELR	54 Neutral	C$57.71M	27.27	-24.70%	―	-36.80%	-253.47%
BRC	47 Neutral	C$156.25M	―	-164.77%	―	―	-100.71%
SLVR	47 Neutral	C$176.78M	―	-4.77%	―	―	-18.89%
Sector *	43 Neutral	AU$1.38B	-6.16	-40.62%	4.20%	-4.78%	-42.91%
PTM	33 Underperform	C$217.77M	―	-18.53%	―	―	13.77%

Eastern Platinum Corporate Events

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.

Eastern Platinum Limited Appoints New Director to Strengthen Board

Eastern Platinum Limited has announced the appointment of Eason Cong Chen to its board of directors, effective May 1, 2025. Mr. Chen, a Canadian CPA with extensive experience in the mining industry, brings valuable expertise in accounting, finance, and corporate governance to Eastplats. This strategic addition to the board is expected to enhance the company’s financial performance and strategic execution, potentially strengthening its position in the mining sector.

Eastern Platinum Appoints New Chair to Drive Growth

Eastern Platinum Limited has appointed Changyu (Charlie) Liu as the new Non-Executive Chair following the passing of the previous Chair, George Graham Dorin. Liu, who is also the Chairman of Ka An Development Co. Limited, a major shareholder in Eastplats, brings extensive experience in business investment across various sectors. This leadership change is expected to support Eastplats’ growth as a significant producer of essential minerals, enhancing its market position and benefiting shareholders.