EASTERN PLATINUM LIMITED REPORTS RESULTS FOR THE SECOND QUARTER OF 2026

Eastern Platinum Limited (ELR) filed its Q2 2026 results and Management’s Discussion and Analysis, revealing a sharp operating deterioration across key financial and production metrics. Revenue for the quarter fell 25.8% year-over-year to $7.9 million from $10.7 million in Q2 2025. Sequentially, revenue declined 42.7% from $13.8 million in Q1 2026.

Mine operating income swung to a loss of $4.2 million from a positive $0.36 million in Q2 2025, while gross margin collapsed to -53% from +3% year-over-year. The net loss attributable to shareholders widened to $6.1 million, or $0.03 per share, compared to $1.8 million, or $0.01 per share, a year earlier.

Production volumes also contracted significantly. PGM production fell sharply, with Q2 6E ounces totaling 4,356 ounces versus 6,781 ounces a year earlier, a decline of 35.8%. PGM concentrate tonnage fell 42.2%. Chrome volumes also decreased, with Q2 ROM feed at 51,160 tons versus 75,340 tons a year earlier, down 32.1%, while chrome concentrate dropped to 14,921 tons from 19,768 tons, a decrease of 24.5%.

On a partial positive note, the average 6E grade improved to 167 grams per ton from 151 grams per ton a year earlier, an increase of 10.6%. Interim CEO Charlie Liu attributed the results to lower-than-targeted monthly run-of-mine processing tonnages at the Crocodile River Mine.

The company’s financial position tightened further, with the working capital deficit increasing to $67.9 million at June 30, 2026, from $56.9 million at December 31, 2025. Cash reserves stood at only $362,000.

Eastern Platinum Limited (ELR) reported a second quarter that was materially worse than the first, confirming that the company missed its H1 2026 production target by a wide margin and saw its financial position deteriorate further. Revenue fell 42.7% sequentially, while mine operating income swung from a positive $0.7 million in Q1 to a negative $4.2 million in Q2. The Q2 net loss of $6.1 million exceeded the full Q1 net loss of $4.1 million.

The company’s prior guidance called for 40,000 tons per month in H1 2026, but actual H1 production was less than half that figure, marking a clear production miss versus prior commitment. Additionally, the working capital deficit widened to $67.9 million, with only $362,000 in cash on hand, reinforcing the going-concern problem already flagged in the Q1 MD&A.

The market had already de-rated the stock from $0.51 at the Q1 2026 release to a low of $0.30 in June before a recovery to $0.44 by August 13. While some operational weakness was likely anticipated, the size of the Q2 revenue collapse and negative gross margin is worse than the Q1 trend implied.

Eastern Platinum Limited (ELR) is a Canadian-listed producer of platinum group metals (PGMs) and chrome, maintaining a primary listing on the Toronto Stock Exchange (TSX) and a secondary listing on the Johannesburg Stock Exchange (JSE). The company’s assets are located within South Africa’s Bushveld Complex. Its Crocodile River Mine, situated on the western limb, is actively producing underground UG2 concentrate from the Zandfontein section. On the eastern limb, the company holds the Kennedy’s Vale and Spitzkop assets, which are currently under care and maintenance or development, alongside the Mareesburg asset, which is in the development stage.

Current operations at the Crocodile River Mine generate PGM and chrome concentrates. Approximately 78% of the company’s revenue in the second quarter of 2026 and 80% of its year-to-date revenue for 2026 originated from PGM concentrate sales to Impala Platinum Limited under related offtake agreements. The company is led by Interim CEO and President Charlie Liu, with David Li serving as CFO and Corporate Secretary.