Our opinion on the current state of EPS

East Plats (EPS) is a mining exploration and development company engaged in the platinum group metals (PGM) and chrome markets in South Africa. The company is listed on the Toronto Stock Exchange (TSX) and the JSE. The company has three projects - the Crocodile mine, which ceased operating in 2012 and is under care and maintenance, Sound Mine Solutions engaged to produce an independent technical report on the Zandfontein tailings retreatment and storage facility to recover chrome, and the Zandfontein project, which is a tailing retreatment project conducted with Union Goal. On 11th February 2019, the company announced that it had made its first shipment of 10 000 tons of chrome concentrate from the Zandfontein operation. The company still foresees considerable cash flow uncertainties over the next 12 months which brings its "going concern" status into question. In its results for the year to 31st December 2022 the company reported revenue down 27% and a headline loss per share of 2c (US) compared with a loss of 1c in the previous period. The auditors expressed a material concern over the company's ability to continue as a going concern. The company said, "As at December 31, 2022, the Company had cash and cash equivalents of $2,448 (2021 - $2,203) and a working capital deficit of $39,545 (2021 - working capital of $14,596). For the year ended December 31, 2022, the Company used cash in operating activities of $5,416 (2021 - generated cash of $890)". In a report on the third quarter the company said, "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". The share is very thinly traded with only about R2800 worth of shares changing hands, on average, each day - which makes it impractical for private investors.