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Eastern Platinum (TSE:ELR)
:ELR
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Eastern Platinum (ELR) AI Stock Analysis

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TSE:ELR

Eastern Platinum

(TSX:ELR)

Rating:50Neutral
Price Target:
C$0.50
▲(92.31%Upside)
The overall stock score is primarily impacted by significant financial challenges, including declining revenues and negative cash flows. While technical analysis shows some positive trends, valuation remains weak due to negative earnings. Corporate events suggest potential improvements in leadership and governance, but operational difficulties persist.

Eastern Platinum (ELR) vs. iShares MSCI Canada ETF (EWC)

Eastern Platinum Business Overview & Revenue Model

Company DescriptionEastern 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 MoneyEastern 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
45
Neutral
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
55
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue62.51M106.94M49.83M68.20M56.14M
Gross Profit823.00K35.63M5.93M9.62M5.55M
EBITDA-7.48M23.48M6.20M9.10M859.00K
Net Income-12.78M13.76M-2.50M-2.71M-9.40M
Balance Sheet
Total Assets157.68M160.77M155.60M162.78M162.99M
Cash, Cash Equivalents and Short-Term Investments3.13M21.35M2.45M6.15M1.77M
Total Debt2.57M1.48M5.11M3.66M4.56M
Total Liabilities83.81M73.11M84.17M82.43M81.66M
Stockholders Equity74.28M88.08M71.87M122.48M125.58M
Cash Flow
Free Cash Flow-20.46M16.25M-8.25M-5.12M-912.00K
Operating Cash Flow-4.43M18.89M-5.42M890.00K1.56M
Investing Cash Flow-12.09M-5.20M3.30M-8.12M-1.75M
Financing Cash Flow1.12M1.37M2.32M7.61M540.00K

Eastern Platinum Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.26
Price Trends
50DMA
0.24
Negative
100DMA
0.19
Positive
200DMA
0.18
Positive
Market Momentum
MACD
<0.01
Positive
RSI
46.74
Neutral
STOCH
49.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELR, the sentiment is Neutral. The current price of 0.26 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.24, and above the 200-day MA of 0.18, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.74 is Neutral, neither overbought nor oversold. The STOCH value of 49.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ELR.

Eastern Platinum Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
C$73.78M22.054.66%17.92%
62
Neutral
C$110.97M1.6719.74%14.23%
50
Neutral
C$53.66M27.27-24.70%-36.80%-253.47%
47
Neutral
C$179.93M-164.77%-100.71%
47
Neutral
C$242.56M-5.23%-18.89%
44
Neutral
C$980.54M-6.83-13.68%1.75%17.37%-32.98%
33
Underperform
$264.68M-14.92%13.77%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ELR
Eastern Platinum
0.24
0.06
33.33%
TSE:PTM
Platinum Group Metals
2.28
0.02
0.88%
TSE:ORV
Orvana Minerals
0.56
0.34
154.55%
TSE:BRC
Blackrock Silver
0.57
0.31
119.23%
TSE:LUC
Lucara Diamond
0.24
-0.08
-25.00%
TSE:SLVR
Silver Tiger Metals
0.58
0.34
141.67%

Eastern Platinum Corporate Events

Executive/Board Changes
Eastern Platinum Limited Announces Board Resignation
Neutral
Jun 19, 2025

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.

Executive/Board ChangesShareholder Meetings
Eastern Platinum Announces 2025 Shareholder Meeting Results
Neutral
Jun 18, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
Eastern Platinum Limited Reports Cybersecurity Breach with No Operational Disruption
Neutral
Jun 16, 2025

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.

Business Operations and StrategyFinancial Disclosures
Eastern Platinum Faces Challenges in Q1 2025 Amid Operational Ramp-Up
Negative
May 14, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Eastern Platinum Limited Appoints New Director to Strengthen Board
Positive
May 2, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 22, 2025