Business
Eastern Platinum Limited Publishes CEO Letter to Shareholders
Vancouver, British Columbia--(Newsfile Corp. - January 23, 2024) - Eastern Platinum Limited (TSX:...
About this update from Eastern Platinum Limited
[{"type":"text","content":"Eastern Platinum Limited Publishes CEO Letter to ShareholdersVancouver, British Columbia--(Newsfile Corp. - January 23, 2024) - Eastern Platinum Limited (TSX: ELR) (JSE: EPS) (\"Eastplats\" or the \"Company\"), a developer and producer of chrome and PGMs assets located in the Bushveld Complex in the Republic of South Africa, today issues the following letter to shareholders from Eastplats CEO Wanjin Yang. Dear Eastplats Stakeholders, Investors, and Friends:Eastplats made progress on key corporate and operational initiatives in 2023, continuing to operate and optimize the tailings storage facility (\"TSF\") retreatment project at the Crocodile River Mine (\"CRM\"), raising capital to restart the Zandfontein underground mine (one of the three mines at CRM), initiating the restart of the Zandfontein underground project and successfully completing its special committee investigation into whistleblower allegations initiated during the year. These milestones came to pass amidst evolving financial and commodity markets.On-Going Chrome Market SupportThe Company continued to operate and optimize the TSF retreatment project at the CRM, producing both chrome concentrates and platinum group metals (\"PGM\") ounces during the year. This retreatment project is the only large-scale magnetic separation application in South Africa, returning an annual average of 38.6% chrome concentrate grades since beginning operation in 2019. Though PGM ounces are expected to account for 65% of Eastplats revenue by 2025-2026, chrome production made up most of the production mix in 2023. PGM production is expected to account for roughly 80% of 2024 revenue as the soft restart of the underground mining will target high grade PGM ounces and metallurgical grade chrome byproducts within the Zandfontein section. The increase in revenue derived from chromes sales during the year was primarily due to higher tonnages sold to third parties at market prices. Low chrome supply at ports (in China) as well as fluctuations in Chinese yuan exchanges rates against the US dollar is also believed to have supported robust chrome pricing in 2023.i Eastplats' TSF retreatment project is expected to result in record annual revenues for 2023 of US$100 million and will continue operating into late 2024. Volatility in PGM MarketThe volatility in the PGM market has offset the buoyed perf...