Our opinion on the current state of EASTPLATS(EPS)East Plats (EPS) is a mining exploration and development company operating in the platinum group metals (PGM) and chrome markets in South Africa. Listed on both the Toronto Stock Exchange (TSX) and the JSE, the company has three key projects:
1. **Crocodile River Mine:** Ceased operations in 2012 and is now under care and maintenance.
2. **Zandfontein Tailings Project:** Focuses on retreating and storing tailings to recover chrome, with Sound Mine Solutions conducting an independent technical report.
3. **Zandfontein Tailings Retreatment Project:** A chrome retreatment project operated with Union Goal.
On February 11, 2019, East Plats announced its first shipment of 10,000 tons of chrome concentrate from the Zandfontein operation. However, it anticipates significant cash flow uncertainties over the next year, which raises concerns about its "going concern" status. For the year ending December 31, 2023, the company reported revenue growth of 98.3% and earnings per share of 8 cents (US) compared to a loss of 1 cent in the previous period. Despite this, auditors highlighted concerns over the company's financial stability.
As of December 31, 2023, East Plats held cash and short-term investments worth $21,349,000 (US) but had a working capital deficit of $15,504,000 (US). The low trading volume (around R3,100 worth of shares daily) makes it difficult for private investors to participate in this stock effectively.
