Eastern Platinum Ltd. T.ELR

RE: RE: RE: RE: Massive amount of shares

[ozramesh]

The following on Edison Research (UK) estimates of ELR for 2010.......I am unable to debate on these figures...this is for your info only.

Eastern Platinum

 

Year End  Revenue (us$m) PBT (us$m) EPS (c) DPS(c) P/E(x) Yield (%)

12/07   119.2   (14.7)   (4.0)   0.0   N/A   N/A

12/08   116.2   1.5        2.4   0.0   50.8   N/A

12/09e 104.3   3.2        0.2   0.0 610.0   N/A

12/10e 159.0   36.0      2.4   0.0  50.8    N/A

Note: *PBT and EPS are normalised, excluding goodwill amortisation and exceptional items.$1.6/£.

Crocette expansion to deliver further production increases

Earlier this week, the company announced that development of the Crocette section

of the CRM has been reactivated. Although on hold since the collapse of PGM prices

in Q308, the reactivation expands Eastern Platinum’s production profile by up to

50koz of PGM a year.

Spitzkop (on the Eastern Limb) back on the cards

Of the company’s three development stage projects on the eastern limb, Spitzkop is

the most advanced (two portals have already been installed) and is currently the

subject of detailed cost estimates and scheduling with a view to further development.

Sensitivities: Platinum price can go both ways

Since their collapse in late 2008, platinum prices (along with a number of other

commodities) have recovered largely as a result of a weakening US dollar and

investment demand. While we do not expect a similar performance in 2010, prices

seem unlikely to weaken significantly from current levels.

Valuation: CRM alone worth 77p

At current PGM prices, we value CRM at 77p using our discount dividend flow model

and a 10% discount rate. As such, the market appears to be attributing no value to

the three eastern limb development projects with attributable resources of 68.6Moz.


chao.