Eastern Platinum (ELR) AI Stock Analysis

• Market Cap: C$29.36M
• Dividend Yield: N/A
• Average Volume (3M): 61.23K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.08
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 1,805
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Other Precious Metals
• EPS (TTM): -0.09
• Shares Outstanding: 202,491,420
• 10 Day Avg. Volume: 32,962
• 30 Day Avg. Volume: 61,235
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.33
• Price to Cash Flow (P/CF): -1.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Eastern Platinum's overall stock score reflects its mixed financial performance and technical indicators. While the company maintains a strong balance sheet with low leverage, profitability and cash flow challenges weigh on its performance. Technical analysis suggests a neutral trend, while valuation metrics indicate overvaluation. Investors may consider these factors before making investment decisions.

Eastern Platinum Business Overview & Revenue Model

Company Description

Eastern Platinum (ELR) is a mining company engaged in the exploration, development, mining, and production of platinum group metals (PGMs). The company operates primarily in the mining sector, focusing on the extraction and processing of PGMs, which include platinum, palladium, rhodium, and other metals. Eastern Platinum's core products are these high-value metals, which are used in various industrial applications, including automotive catalytic converters, electronics, and jewelry.

How the Company Makes Money

Eastern Platinum makes money through the sale of platinum group metals extracted from its mining operations. The company's revenue model primarily revolves around the production and sale of PGMs, which are sold to industrial users and metal traders. Key revenue streams include the sale of platinum, palladium, and rhodium. The prices of these metals can significantly influence the company's earnings, as they are subject to market fluctuations and demand in industries such as automotive and electronics. Additionally, Eastern Platinum may engage in strategic partnerships and off-take agreements with other enterprises to stabilize its revenue streams and ensure consistent market access for its products.

Eastern Platinum Financial Statement Overview

Summary

Eastern Platinum presents a mixed financial position. The income statement highlights challenges in revenue growth and profitability, while the balance sheet indicates financial stability with low leverage. However, cash flow analysis underscores the need for improved cash management. The company should focus on enhancing profitability and cash flow to strengthen its overall financial health.

Income Statement

Eastern Platinum's income statement reflects a challenging environment with mixed results. While the company experienced a significant decline in revenue on a TTM basis, from $106.94M in 2023 to $71.91M in 2024, indicating a revenue growth rate of -32.72%, it has managed to maintain a positive gross profit margin of 20.52% in the TTM period. However, the net profit margin is relatively low at 1.09%, and the EBIT margin is negative, suggesting profitability challenges. EBITDA margin remains positive at 6.31%, which indicates operational efficiency but highlights the need for improved cost management.

Balance Sheet

The balance sheet shows a strong equity position with a debt-to-equity ratio of 0.005 in the TTM period, indicating low leverage. The equity ratio is healthy at 54.42%, reflecting a stable capital structure. Return on equity is low at 0.83%, suggesting that the company is not efficiently generating returns on its equity. Overall, the company maintains a solid balance sheet with minimal debt, but the low ROE indicates room for improvement in generating shareholder value.

Cash Flow

Cash flow analysis reveals challenges in cash generation, with a negative free cash flow of -$10.1M in the TTM period, down from $16.25M in 2023, resulting in a significant free cash flow growth rate of -162.09%. The operating cash flow to net income ratio is 4.28, indicating strong cash conversion, but the negative free cash flow suggests high capital expenditures impacting liquidity. Eastern Platinum needs to focus on improving its cash flow generation to support operations and growth.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
71.91M	106.94M	49.83M	68.20M	56.14M	39.24M
	Gross Profit
14.76M	35.63M	5.93M	9.62M	5.55M	5.52M
	EBIT
-3.04M	18.54M	1.89M	2.01M	-636.00K	-1.46M
	EBITDA
4.54M	23.48M	6.20M	9.10M	859.00K	1.18M
	Net Income Common Stockholders
785.00K	13.76M	-2.50M	-2.71M	-9.40M	-1.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.71M	21.35M	2.45M	6.15M	1.77M	1.96M
	Total Assets
156.85M	160.77M	155.60M	162.78M	162.99M	164.85M
	Total Debt
989.00K	1.48M	5.11M	3.66M	4.56M	63.00K
	Net Debt
-17.31M	-16.66M	2.66M	1.46M	2.79M	-1.89M
	Total Liabilities
72.82M	73.11M	84.17M	82.43M	81.66M	71.35M
	Stockholders Equity
84.43M	88.08M	71.87M	122.48M	125.58M	138.24M
Cash Flow		Free Cash Flow
-10.10M	16.25M	-8.25M	-5.12M	-912.00K	-9.43M
	Operating Cash Flow
3.36M	18.89M	-5.42M	890.00K	1.56M	-8.84M
	Investing Cash Flow
-8.44M	-5.20M	3.30M	-8.12M	-1.75M	3.55M
	Financing Cash Flow
-1.50M	1.37M	2.32M	7.61M	540.00K	2.77M

Eastern Platinum Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELR, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.17, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.08 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ELR.

Eastern Platinum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGI	77 Outperform	$14.68B	36.58	8.74%	0.41%	33.75%	32.86%
ELR	57 Neutral	C$29.36M	27.27	-15.98%	―	―	―
Sector *	47 Neutral	$2.36B	-3.00	-21.73%	3.58%	3.97%	-28.71%
IVN	46 Neutral	$13.89B	43.93	5.25%	―	―	-33.54%
S	43 Neutral	C$55.62M	―	-12.07%	―	-28.88%	-12.67%
PTM	37 Underperform	$164.37M	―	-19.17%	―	―	13.68%
NG	30 Underperform	$1.24B	―	96.21%	―	―	2.34%

Eastern Platinum Corporate Events

Eastern Platinum Announces Auditor Change

Eastern Platinum Limited has announced a change in its auditing firm, switching from PricewaterhouseCoopers LLP to Davidson & Company LLP. This change comes with no modified opinions or reportable events in the previous auditor’s reports. The company’s board and audit committee have filed the necessary documentation for this transition.