Eastern Platinum (ELR) AI Stock Analysis

• Market Cap: C$64.80M
• Dividend Yield: N/A
• Average Volume (3M): 177.07K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.06
• Revenue Growth: -36.80%
• EPS Growth: -253.47%
• Country: CA
• Employees: 1,805
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Other Precious Metals
• EPS (TTM): -0.05
• Shares Outstanding: 202,491,420
• 10 Day Avg. Volume: 407,893
• 30 Day Avg. Volume: 177,066
• 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: 0.27
• 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 ▲(38.89%Upside)

Eastern Platinum's overall stock score is primarily hindered by weak financial performance and unattractive valuation metrics. While technical analysis shows some bullish momentum, overbought conditions could limit upside potential. Corporate events signal management's efforts to improve operations, but immediate challenges remain.

Eastern Platinum Business Overview & Revenue Model

Company Description

Eastern Platinum Limited, together with its subsidiaries, engages in the mining, exploration, and development of platinum group metal (PGM) and chrome properties in South Africa. Its PGM deposits include platinum, palladium, rhodium, osmium, iridium, and ruthenium. The company principally holds 87.5% interest in the Crocodile River Mine located on the western limb and the Kennedy's Vale project on the eastern limb of Bushveld Complex (BCX); 87% interest in the Mareesburg project situated on the eastern limb of the BCX; and 93.4% interest in the Spitzkop project located on the eastern limb of the BCX. Eastern Platinum Limited is headquartered in Vancouver, Canada.

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
	EBIT
-12.72M	18.54M	1.89M	2.01M	-636.00K
	EBITDA
-7.48M	23.48M	6.20M	9.10M	859.00K
	Net Income Common Stockholders
-12.78M	13.76M	-2.50M	-2.71M	-9.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.13M	21.35M	2.45M	6.15M	1.77M
	Total Assets
157.68M	160.77M	155.60M	162.78M	162.99M
	Total Debt
2.57M	1.48M	5.11M	3.66M	4.56M
	Net Debt
-559.00K	-16.66M	2.66M	1.46M	2.79M
	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: 0.36
• 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 0.36 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.16, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 78.97 is Negative, neither overbought nor oversold. The STOCH value of 94.87 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
ORV	71 Outperform	C$77.88M	21.26	4.66%	―	17.92%	―
ELR	54 Neutral	C$64.80M	27.27	-24.70%	―	-36.80%	-253.47%
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%
PLG		$173.82M	―	-18.53%	―	―	―
LUC	69 Neutral	C$108.70M	1.64	19.74%	―	14.23%	―
BRC	47 Neutral	C$127.77M	―	-88.96%	―	―	-100.71%
SLVR	47 Neutral	C$179.80M	―	-4.77%	―	―	-18.89%

Eastern Platinum Corporate Events

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.

Eastern Platinum Reports 2024 Financial Results and 2025 Targets Amid Operational Transition

Eastern Platinum Limited reported a significant decline in financial performance for the fiscal year 2024, with revenue dropping by 41.5% to $62.5 million and a net loss of $12.8 million, primarily due to decreased sales of chrome concentrate and lower gross margins from its Crocodile River Mine operations. The company faced operational challenges as it transitioned from its Retreatment Project to underground mining, but remains optimistic about a rebound in PGM and chrome prices in 2025, which could improve profitability.

Eastern Platinum Mourns the Loss of Board Chair George Dorin

Eastern Platinum Limited announced the passing of George Graham Dorin, the esteemed Board Chair, who joined the company in 2016 and played a crucial role in its governance and growth. His extensive financial expertise and leadership were highly valued, and his loss is deeply felt by the company and its board members, who extend their condolences to his family.