EASTERN PLATINUM LIMITED REPORTS ANNUAL RESULTS FOR 2024 AND PROVIDES ITS TARGETS FOR 2025

Canada NewsWire

VANCOUVER, BC, March 28, 2025

VANCOUVER, BC, March 28, 2025 /CNW/ - Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to report that it has filed its Audited Consolidated Financial Statements for the fiscal year ended December 31, 2024 and the corresponding Management's Discussion and Analysis and Annual Information Form. Below is a summary of the Company's financial results for the fourth quarter of 2024 ("Q4 2024") and for the fiscal year ended December 31, 2024 ("FY2024") (all amounts in USD unless specified) in comparison to the same periods in 2023 ("Q4 2023" and "FY2023", respectively):

   -- Revenue for Q4 2024 decreased to $17.0 million (Q4 2023 - $30.5 million), 
      representing a -44.3% decrease. Revenue for FY2024 decreased to $62.5 
      million (FY2023 - $106.9 million), representing a -41.5% decrease. 
 
   -- Mine operating income decreased by $15.7 million to a loss of -$7.9 
      million in Q4 2024 (Q4 2023 mine operating income - $7.8 million), 
      resulting in a gross margin of -46.2% in Q4 2024 as compared to 25.5% in 
      Q4 2023. Mine operating income in FY2024 decreased by $30.8 million to 
      $0.8 million (FY2023 - $31.6 million), resulting in a gross margin of 
      1.3% in FY2024 as compared to 29.5% in FY2023. 
 
   -- Operating loss was -$8.6 million in Q4 2024 as compared to an operating 
      income of $2.8 million in Q4 2023. Operating income decreased by $31.2 
      million to a loss of -$12.7 million in FY2024 from an operating income of 
      $18.5 million in FY2023, a -168.6% decrease in operating income. 
 
   -- Net loss attributable to shareholders was -$11.9 million ($0.05 loss per 
      share) in Q4 2024 versus $3.3 million ($0.02 earnings per share) in Q4 
      2023. The decrease in net income was largely attributable to the 
      significant decrease in third-party chrome concentrate sales in the 
      period. 
 
   -- Net loss attributable to shareholders decreased to -$12.8 million ($0.06 
      loss per share) in FY2024 compared to a net income attributable to 
      shareholders of $13.8 million ($0.08 earnings per share) in FY2023. The 
      decrease in income during FY2024 is mainly attributable to the decreased 
      revenue and gross margins generated by remining and processing the 
      Company's underground and tailings resources at the Crocodile River Mine 
      ("CRM") to produce chrome concentrate and platinum group metals ("PGM") 
      concentrate, respectively. 
 
   -- The Company had a working capital deficit (current assets less current 
      liabilities) of $38.7 million as at December 31, 2024 (December 31, 2023 
      -- working capital deficit of $15.5 million) and short-term cash 
      resources of $3.1 million (consisting of cash, cash equivalents, and 
      short-term investments)(December 31, 2023 - $21.3 million). The Company 
      used its profits earned in FY2023 towards the ramp up of operations at 
      the Zandfontein underground section of the CRM. 

Wanjin Yang, Chief Executive Officer and President of Eastplats commented, "We faced challenges as we restarted underground operations at the Crocodile River Mine during fiscal 2024. As the Retreatment Project ended in the first quarter of 2025, it is critical that we focus on improving production results while being mindful of costs and capital expenditures, however, we are confident that PGM and chrome prices will rebound in 2025, which will help us achieve profits again."

Operations

The Company generated revenue from processing PGM and chrome concentrates during Q4 2024 and FY2024. Eastplats' majority of revenue (approximately 74% and 87% for Q4 2024 and FY2024, respectively) is from chrome concentrate sales.

Since July 1, 2022, chrome revenue has been recognized only through third-party sales of chrome concentrate. The Company also derives PGM revenue under the PGM offtake agreement with Impala Platinum Limited ("Impala"). The Retreatment Project ended during the first quarter of 2025 when the original CRM tailings from the tailings storage facility ("TSF") were fully processed. The Company started to process underground Run-of-Mine ("ROM") ore in October of 2024.

Summary of chrome production from the TSF for the three months and year ended December 31, 2024 and 2023:

 
                               Q4 2024  Q4 2023  FY2024     FY2023 
Total Tailings Feed (Tons)     263,141  480,777  1,224,553  2,247,705 
Average grade Cr concentrate    38.2 %   38.7 %     38.4 %     38.7 % 
Tons of Cr concentrate          57,474  109,056    255,649    486,166 
 

In Q4 2024, the Company processed 63,181 tons of ROM UG2 ore from the Zandfontein underground section at the CRM.

Summary of chrome production from underground operations for the three months and year ended December 31, 2024:

 
                             Q4 2024  FY2024 
Tons of chrome concentrate    14,508  18,118 
 

Summary of PGM production for the three months and year ended December 31, 2024 and 2023:

 
                                Q4 2024  Q4 2023  FY2024  FY2023 
Tons of PGM concentrate (dry)     1,015      900   3,234   3,869 
PGM ounces produced (6E)*         4,015    1,366   8,109   6,660 
 

(*PGM 6E ounces are estimates until final exchanges and umpire results have been concluded, which can take up to three to five months, depending of the elements being exchanged.)

Outlook

The Company's targets for 2025 are as follows:

   -- Ramp-up the Zandfontein underground operations -- process up to 631,000 
      tons of underground ROM in total for the year (ongoing); 
 
   -- Confirm capital plans to support the full re-opening of Zandfontein 
      underground operations at the CRM from external or internal sources 
      (ongoing); 
 
   -- Complete the second phase of the TSF capital works program and confirm 
      the TSF dam space for new ROM tailings (ongoing); 
 
   -- Resolve the matters pertaining to the Retreatment Project with Union Goal 
      (ongoing); 
 
   -- Optimize Main Plant Circuit B for underground operations (ongoing); 
 
   -- Renovate Circuit D to high energy flotation cells for better ROM 
      processing recovery rate to 82% or higher (ongoing); 
 
   -- Advance the Mareesburg and Spitzkop project environmental work to 
      complete the Environmental Impact Assessment ("EIA") and other 
      environmental studies and amendments (ongoing); and 
 
   -- Continue prospecting and assessment work in relation to Zandfontein, 
      Crocette and Kareespruit sections of the CRM and Kennedy's Vale and 
      Spitzkop mines at the eastern limb of the Bushveld Complex (ongoing). 

During 2025, the Company is focusing on ramping up operations at the Zandfontein underground, subject to capital availability and profitability of its chrome operations. If successful, PGM and chrome production is expected to increase in 2025. There are no other expected changes to the business in 2025.

Care and maintenance will continue for the Company's previously developed eastern limb projects for 2025. The Company is actively looking at opportunities for its other assets including continuing to explore options to utilize or monetize these assets.

The Company has a primary listing on the Toronto Stock Exchange and a secondary listing on the JSE Limited.

The Company has filed the following documents, under the Company's profile on SEDAR+ at www.sedarplus.ca:

   -- Audited Consolidated Financial Statements for the fiscal year ended 
      December 31, 2024; 
 
   -- Management's Discussion and Analysis for the fiscal year ended December 
      31, 2024; and 
 
   -- Annual Information Form at December 31, 2024. 

The audited consolidated financial statements for the fiscal year ended December 31, 2024 is available for download at https://www.eastplats.com/investors/quarterly-reports/F2024/ and is also available on the JSE's website at:

https://senspdf.jse.co.za/documents/2025/JSE/ISSE/EPS/FY24.pdf.

About Eastern Platinum Limited

Eastplats owns directly and indirectly a number of PGM and chrome assets in the Republic of South Africa. All of the Company's properties are situated on the western limb (Crocodile River Mine) and eastern limb (Kennedy's Vale, Spitzkop, Mareesburg) of the Bushveld Complex, the geological environment that hosts approximately 80% of the world's PGM-bearing ore.

Operations at the Crocodile River Mine currently include mining and processing ore from the Zandfontein underground section to produce PGM and chrome concentrates, respectively.

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedarplus.ca.

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