Eastern Platinum (ELR) AI Stock Analysis

• Market Cap: C$118.03M
• Dividend Yield: N/A
• Average Volume (3M): 308.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: -19.44%
• EPS Growth: -2980.00%
• Country: CA
• Employees: 1,805
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): -0.01
• Shares Outstanding: 203,491,420
• 10 Day Avg. Volume: 563,224
• 30 Day Avg. Volume: 308,532
• PEG Ratio: <0.01
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -0.96
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: C$0.44 ▲(42.90% Upside)

Eastern Platinum's overall stock score is primarily impacted by its weak financial performance, characterized by negative profitability and cash flow issues. Despite strong technical indicators suggesting bullish momentum, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation. The absence of earnings call data and corporate events leaves the financial and technical aspects as the primary influences on the score.

Positive Factors

Strategic Asset Location

Located in the Bushveld Complex, a major PGM-producing region, Eastern Platinum's assets are strategically positioned to leverage rich mineral deposits, enhancing long-term production potential and market relevance.

Low Leverage

A low debt-to-equity ratio suggests financial stability and less risk of insolvency, providing Eastern Platinum with more flexibility to invest in growth opportunities and weather economic downturns.

Revenue Model

The company's revenue model, based on essential PGMs for industrial applications, ensures ongoing demand from sectors like automotive and jewelry, supporting sustained revenue streams.

Negative Factors

Negative Profitability

Negative margins indicate that costs exceed revenues, which can erode shareholder value and limit the company's ability to reinvest in operations or pay dividends, impacting long-term growth.

Cash Flow Issues

Persistent cash flow challenges can hinder Eastern Platinum's ability to fund operations, invest in new projects, and manage debt, posing a risk to financial health and operational sustainability.

Declining Revenue Growth

While revenue growth exists, it is not strong enough to counteract declining profitability, which may limit the company's ability to scale operations and improve financial performance over time.

Eastern Platinum Business Overview & Revenue Model

Company Description

Eastern Platinum Limited (ELR) is a mineral exploration and development company focused primarily on platinum group metals (PGMs) in South Africa. The company operates in the mining sector and is engaged in the acquisition, exploration, and development of platinum and palladium properties. ELR’s core assets include the Crocodile River Mine and the Spitzkop Platinum Project, which are strategically located in the Bushveld Complex, a world-renowned PGM-producing region.

How the Company Makes Money

Eastern Platinum generates revenue primarily through the extraction and sale of platinum group metals, including platinum, palladium, and rhodium. The company's revenue model is largely based on the production and sale of these metals to various industrial and commercial clients, including automotive manufacturers and jewelers, who require PGMs for catalytic converters and other applications. Key revenue streams include the sale of raw minerals from its mining operations, as well as potential royalties from partnerships with other mining entities. Additionally, fluctuations in global commodity prices, demand for PGMs, and production levels significantly impact its earnings. Strategic partnerships with other mining companies and financial institutions also play a role in enhancing its operational capabilities and market reach.

Eastern Platinum Financial Statement Overview

Summary

Eastern Platinum faces significant financial challenges, with declining revenues and profitability issues. The income statement shows negative profit margins and declining revenue. The balance sheet reflects low leverage but negative return on equity. Cash flow analysis reveals negative operating and free cash flow, indicating operational difficulties.

Income Statement

The income statement shows significant challenges with declining revenue and negative profit margins. The TTM data indicates a revenue decline of 13.07%, and gross profit margin is negative at -24.68%. Net profit margin is also negative at -44.84%, reflecting substantial losses. The company has struggled to maintain profitability, with EBIT and EBITDA margins both negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet reflects a relatively low debt-to-equity ratio of 0.06, suggesting limited leverage and potential stability. However, the return on equity is negative at -31.55%, indicating that the company is not generating returns for shareholders. The equity ratio is not explicitly calculated but appears stable given the low debt levels.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Despite a high free cash flow to net income ratio, the overall cash flow position is weak, reflecting operational difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.32M	62.51M	106.94M	49.83M	68.20M	56.14M
Gross Profit	-12.43M	823.00K	35.63M	5.93M	9.62M	5.55M
EBITDA	-18.70M	-7.48M	23.48M	6.20M	9.10M	859.00K
Net Income	-22.82M	-12.78M	13.76M	-2.50M	-2.71M	-9.40M
Balance Sheet
Total Assets	173.61M	157.68M	160.77M	155.60M	162.78M	162.99M
Cash, Cash Equivalents and Short-Term Investments	106.00K	3.13M	21.35M	2.45M	6.15M	1.77M
Total Debt	5.52M	2.57M	1.48M	5.11M	3.66M	4.56M
Total Liabilities	105.05M	83.81M	73.11M	84.17M	82.43M	81.66M
Stockholders Equity	69.03M	74.28M	88.08M	71.87M	122.48M	125.58M
Cash Flow
Free Cash Flow	-13.93M	-20.46M	16.25M	-8.25M	-5.12M	-912.00K
Operating Cash Flow	-6.83M	-4.43M	18.89M	-5.42M	890.00K	1.56M
Investing Cash Flow	-5.49M	-12.09M	-5.20M	3.30M	-8.12M	-1.75M
Financing Cash Flow	4.37M	1.12M	1.37M	2.32M	7.61M	540.00K

Eastern Platinum Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.31 is below the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.29, and above the 200-day MA of 0.23, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 80.13 is Negative, neither overbought nor oversold. The STOCH value of 92.97 is Negative, 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	73 Outperform	C$84.33M	1.09	21.15%	―	28.12%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PGDC	49 Neutral	C$162.77M	-14.35	―	―	14.89%	-24.08%
ELR	47 Neutral	C$118.03M	-3.66	-28.77%	―	-19.44%	-2980.00%
DEF	45 Neutral	C$85.54M	-35.92	-4.10%	―	―	43.20%
CUAU	45 Neutral	C$90.72M	-25.51	-44.59%	―	―	-56.33%

Eastern Platinum Corporate Events

Eastern Platinum Secures Credit Facility to Boost Production

Eastern Platinum Limited has secured a credit facility of up to C$1,000,000 from Ka An Development Co. Limited to support the increase in underground production at the Crocodile River Mine. This financial move is part of Eastplats’ strategy to ramp up production at its Zandfontein underground mine, aiming for 70,000 tonnes of ore per month by the end of 2026, which could enhance its position in the PGM and chrome markets.

Eastern Platinum Reports Increased Q3 Revenue Amid Strategic Shift to PGM Production

Eastern Platinum Limited reported a 24.5% increase in revenue for Q3 2025 compared to the same period in 2024, driven by higher PGM sales. However, the company faced a net loss of $10.9 million for the nine months ended September 30, 2025, primarily due to decreased chrome concentrate sales following the cessation of its retreatment project operations. The company is focusing on ramping up underground operations at the CRM to enhance PGM production, which is expected to become the main revenue source. Despite a working capital deficit and increased utilization of its credit facility, the company is strategically positioning itself to capitalize on its PGM production capabilities.