Business
Eastplats Announces Restatement of Third Quarter of 2022 Financial Statements and MD&A
Vancouver, British Columbia--(Newsfile Corp. - March 20, 2023) - Eastern Platinum Limited (TSX...
About this update from Eastern Platinum Limited
[{"type":"text","content":"Eastplats Announces Restatement of Third Quarter of 2022 Financial Statements and MD&AVancouver, British Columbia--(Newsfile Corp. - March 20, 2023) - Eastern Platinum Limited (TSX: ELR) (JSE: EPS) (\"Eastplats\" or the \"Company\") announced that it has amended and restated its condensed interim consolidated financial statements (the \"Amended and Restated Financial Statements\") for the three and nine months ended September 30, 2022 and the corresponding management's discussion and analysis (\"Amended and Restated MD&A\"). The restatement is due to a change in Eastplats' accounting policies and determination from management of when revenue should be recognized in accordance with International Financial Reporting Standards from its contract with Union Goal Offshore Solutions Limited (\"Union Goal\") and its sales of chrome concentrate previously recognized in the third quarter of 2022. The transactions in question involved the monthly production of chrome concentrate at the Company's Crocodile River Mine. Chrome concentrate revenue is recognized when control is transferred to the offtake party, Union Goal, in accordance with the executed updated Retreatment Project Agreements (the \"2021 Updated Retreatment Project Agreements\"), which were signed on March 10, 2021 and include the following:The 2021 Revised and Restated Framework Agreement;The 2021 Revised and Restated Offtake Agreement;The 2021 Revised and Restated Eastplats Loan Agreement; andThe 2021 Revised and Restated Barplats Equipment and Chrome Plant Agreement.Previously, and until approximately June 30, 2022, revenue recognition occurred when the chrome concentrate was produced by the chrome processing circuits and related technology equipment, based on the assumption that all chrome concentrate was continually shipped upon production, and that payment from Union Goal was considered probable. However, after re-assessing the probability of future payment by Union Goal, in the third quarter of 2022, Eastplats suspended shipments to Union Goal as a result of continuing non-payment by Union Goal and failure of Union Goal to reduce its significantly long outstanding account. Eastplats began to contract free market sales. As such, these contracts provided transfer of control and revenue recognition as defined by IFRS 15 - Revenue from Contracts with Customers, upon comp...