April 5, 2023, Vancouver, British Columbia – Eastern Platinum Limited (“Eastplats” or the “Company”) is pleased to report that it has filed its Audited Consolidated Financial Statements for the fiscal year ended December 31, 2022 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 2022 (“Q4 2022”) and for the fiscal year ended December 31, 2022 (“FY2022”) (all amounts in USD unless specified) in comparison to the same respective periods in 2021 (“Q4 2021” and “FY2021”, respectively):

Revenue for Q4 2022 decreased to $8.3 million (Q4 2021 – $15.6 million), representing a 46.8% decrease. Revenue for FY2022 decreased to $49.8 million (FY2021 – $68.2 million), representing a 27.0% decrease.
Mine operating income decreased by $6.5 million to a mine operating loss of -$3.5 million in Q4 2022 (Q4 2021 mine operating income – $3.0 million), resulting in a gross margin of -42.1% in Q4 2022 as compared to 19.1% in Q4 2021. Mine operating income in FY2022 decreased by $3.7 million to $5.9 million (FY2021 – $9.6 million), resulting in a gross margin of 11.9% in FY2022 as compared to 14.1% in FY2021.
Operating loss was -$6.5 million in Q4 2022 compared to an operating income of $0.2 million in Q4 2021. Operating loss increased by $3.3 million to -$4.6 million in FY2022 from -$1.3 million in FY2021, a 253.8% increase in operating loss.
Net loss attributable to shareholders was -$0.3 million ($0.00 loss per share) in Q4 2022 versus a net loss attributable to shareholders of -$1.9 million ($0.01 loss per share) in Q4 2021. The Q4 2022 net loss was largely attributable to the decrease in mine operating income offset by Other income of $6.5 million, which largely relates to the change in value of the Company’s loans payable. The Company also recognized a significant foreign exchange gain in the quarter of $1.1 million as the South African Rand strengthened against the US Dollar, while in Q4 2021, the Company recorded a foreign exchange loss due to the depreciation of the South African Rand to the US Dollar of $1.9 million in the period.
Net loss attributable to shareholders increased to -$2.6 million ($0.02 loss per share) in FY2022 compared to a net loss attributable to shareholders of -$1.2 million ($0.01 loss per share) in FY2021. The increase in loss during FY2022 is mainly attributable to the reduced revenue and gross margins generated by remining and processing the Company’s tailings resources at the Crocodile River Mine (“CRM”) to produce chrome concentrate and platinum group metals (“PGM”) concentrate, respectively; and finance costs of $5.6 million, which relates to the change in value of the Company’s loans payable offset by Other income of $7.4 million.
The Company had a working capital deficit (current assets less current liabilities) of $39.5 million as at December 31, 2022 (December 31, 2021 – working capital of $14.6 million).
Operations

The Company generated revenue from processing PGM and chrome concentrates during Q4 2022 and FY2022. Eastplats’ majority of revenue (approximately 68% and 75% for Q4 2022 and FY2022, respectively) is from chrome concentrate sales. Until July of 2022, this revenue was based on the Union Goal offtake agreement (the “Union Goal Offtake Agreement”) entered into between the Company’s subsidiary Barplats Mines (Pty) Limited (“Barplats”) and Union Goal Offshore Solution Limited (“Union Goal”) in relation to chrome concentrate production from the Retreatment Project. Previously, and until the end of the second quarter, the Retreatment Project produces revenue based on tons of material made available for processing by remining and processing the tailings, recovery of certain operational costs and allocation of the upfront cash payment for the offtake of chrome concentrate to Union Goal. Additional non-cash deferred revenue was recognized based on tons made available for processing from the discounting of the chrome equipment debt and the construction loan based on an effective discount rate. Although the Union Goal Offtake Agreement remains in place, Union Goal stopped taking shipments of chrome concentrate in June 2022. Chrome revenue after this point has been generated only through third-party sales of chrome concentrate. The Company also derives PGM revenue under a PGM offtake agreement with Impala Platinum Limited (“Impala”) from further processing of tailings materials following the production of chrome concentrates. The Company continues its Retreatment Project at Barplats’ tailings storage facility located at the CRM in South Africa.

Summary of chrome production for the three months and year ended December 31, 2022 and 2021:

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