Eastern Platinum reports its revenue increased by 505.6%

Vancouver, British Columbia – Eastern Platinum report for the third quarter of 2023 and for the nine months ended September 30, 2023 that its revenue for Q3 2023 increased to $21.8 million (Q3 2022 – $3.6 million), representing a $18.2 million or 505.6% increase. Revenue for YTD 2023 increased to $80.5 million (YTD 2022 – $41.5 million), representing a 94.0% increase.

Mine operating income increased by $5.1 million (or 268.4%) to $7.0 million in Q3 2023 (Q3 2022 – $1.9 million) while gross margin decreased from 52.5% in Q3 2022 to 32.1% in Q3 2023. Mine operating income in YTD 2023 increased by $16.1 million (or 171.3%) to $25.5 million (YTD 2022 – $9.4 million) and gross margin increased to 31.7% in YTD 2023 from 22.8% in YTD 2022.

Operating income was $3.6 million in Q3 2023 compared to an operating loss of $0.9 million in Q3 2022. Operating income improved by $17.4 million to $17.5 million in YTD 2023 from $0.1 million in YTD 2022.

The Company continues to produce chrome concentrate from its Retreatment Project. Eastplats has also commenced blasting activities at the CRM, which initiated the soft restart of the Zandfontein underground section.

The Company also derives revenue from platinum group metals (“PGM”) concentrate sales under a PGM offtake agreement with Impala Platinum Limited (“Impala”). The Company produces PGMs from further processing tailings material following the production of chrome concentrates.

The majority of the Company’s revenue (100% for Q3 2023) has been generated from chrome concentrate sales to third parties since the fourth quarter of 2022.

While PGM prices have decreased from the prior year, chrome prices have increased during the same period, which has driven revenue and mine operating income growth for the Company. However, chrome revenue is expected to wind down into 2024 as the Retreatment Project approaches its completion date.

When that occurs, the PGM Circuit D and PGM Main Circuit B (collectively, the “PGM Circuits”) will become the main source of revenue as the Company ramps up production at the Zandfontein underground section of the CRM.

Outlook

The Company’s targets for 2023 remain as follows:

• Operate and optimize the PGM Circuits (ongoing);
• Raise additional capital to support the full re-opening of Zandfontein underground operations at the CRM (ongoing);
• Operate and optimize the Retreatment Project (ongoing);
• Complete the optimization of the chrome recovery plant for the Retreatment Project (ongoing);
• Assess the value for continued use of the chrome recovery plant after optimization (initiated);
• Complete the second phase of the tailings storage facility (“TSF”) capital works program (ongoing);
• Advance the Mareesburg project (located on the eastern limb) environmental work to complete the Environmental Impact Assessment (“EIA”) and other environmental studies and amendments (ongoing);
• Continue prospecting and assessment work in relation to Zandfontein, Crocette and Spitzkop ore bodies (ongoing);
• Commission main plant circuit A for underground operations; and
• Update other capital assessments upon completion of additional capital fundraising.

The Company will update its targets for 2024 in due course.