In a
recent Stockhouse article, we introduced our investor audience to an intriguing value play in the prestigious and profitable Platinum Group Metals (PGM) market. Fast-forward to today and things are really heating up in the rarified air of these rare metals.
Vancouver, BC-based
Eastern Platinum Ltd. (ELR or Eastplats) (
TSX:ELR, JSE: EPS,
Forum) is a PGM and chrome operating Company engaged in the exploration, development, mining, and potential acquisition of PGM/Chrome properties located in the Republic of South Africa. Eastplats’ primary assets include Crocodile River Mine (CRM), Mareesburg, Kennedy’s Vale and Spitzkop.
All of ELR’s properties and projects are situated on the western and eastern limbs of the Bushveld Complex –
a geological environment that hosts approximately 80% of the world's PGM-bearing ore.
ELR’s cornerstone operation is its Crocodile River Mine, a mine located approximately 70 kilometres north-northwest of Johannesburg. Operations at CRM currently include remining and processing its Zandfontein UG2 tailings resources. The chrome and PGM concentrates produced from the tailings facility (‘Retreatment Project’) have been delivered to offtakers under the respective offtake agreements.
(Click image to enlarge)
Investor’s Corner
From the investment perspective, Eastplats continues to actively monitor the PGM markets and other developments in the mining and minerals sector to assess the overall economics related to PGM recovery circuits in addition to the chrome processing of the Retreatment Project and potentials to resume active underground mining at CRM, which is currently in care and maintenance. Eastern Platinum is currently updating its assessment of the Mareesburg project which is yet to be completed.
The company’s shareholder value has also seen tidy return of nearly 200% since early June 2020, with a market cap in excess of $56 million at press time.
(12 month TSX: ELR stock chart May 2020 – May 2021. Click image to link to chart)
In the News
On
May 14th, Eastern Platinum issued a news release reporting results for Q1 2021 along with providing operation updates with improved financials across the board.
Highlights:
- Revenue for Q1 2021 increased to $16.7 million (Q1 2020 - $14.2 million).
- Mining operating income was $1.4 million for Q1 2021 (Q1 2020 - $1.4 million).
- Positive working capital (current assets less current liabilities) of $11.4 million as of March 31, 2021 (December 31, 2020 - $4.1 million).
- And a net loss attributable to shareholders decreased to $0.9 million (loss attributable to shareholders of $0.01 per share) in Q1 2021 versus a loss of $8.2 million (loss attributable to shareholders of $0.09 per share) in Q1 2020. The improvement is attributable to the continued revenue generated by the Retreatment Project and the reduction of a foreign exchange loss of $8.7 million in Q1 2020, which resulted from the significant drop in the South African rand to the U.S. dollar in March 2020 at the backdrop of COVID-19.
Three days earlier,
on May 11th, Eastplats provided a detailed PGM production and underground mine design update. The Company reported it had “dispatched 199.8 dry tons of Platinum Group Metal concentrates containing 490.9 oz of PGMs from the small-scale PGM circuit (previously the scavenger plant circuit) (“
Circuit D”) under the offtake agreement with Impala Platinum Limited, within the production month of April 2021.
Diana Hu, President and Chief Executive Officer of Eastplats, commented on the company’s exciting new revenue streams and growth:
“Circuit D's first full month of production is an important breakthrough for the Company. It not only created a new revenue stream in addition to the Company's chrome production, but will also assist and accelerate the recommissioning of the PGM Main Circuit, which is expected to add a further 600-800 tons of PGM concentrates per month from September, a significant boost to the Company's operation and revenue growth.”
To learn more about the company and the latest updates, visit
eastplats.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.