We can readily understand why investors are attracted to unprofitable companies. By way of example, Eclipse Metals (ASX:EPM) has seen its share price rise 320% over the last year, delighting many shareholders. But while the successes are well known, investors should not ignore the very many unprofitable companies that simply burn through all their cash and collapse.

So notwithstanding the buoyant share price, we think it's well worth asking whether Eclipse Metals'cash burn is too risky In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'.

Check out our latest analysis for Eclipse Metals

Does Eclipse Metals Have A Long Cash Runway?

You can calculate a company's cash runway by dividing the amount of cash it has by the rate at which it is spending that cash. As at June 2020, Eclipse Metals had cash of AU$962k and no debt. Looking at the last year, the company burnt through AU$366k. So it had a cash runway of about 2.6 years from June 2020. Arguably, that's a prudent and sensible length of runway to have. You can see how its cash balance has changed over time in the image below.

How Is Eclipse Metals' Cash Burn Changing Over Time?

Whilst it's great to see that Eclipse Metals has already begun generating revenue from operations, last year it only produced AU$68k, so we don't think it is generating significant revenue, at this point. As a result, we think it's a bit early to focus on the revenue growth, so we'll limit ourselves to looking at how the cash burn is changing over time. With the cash burn rate up 11% in the last year, it seems that the company is ratcheting up investment in the business over time. That's not necessarily a bad thing, but investors should be mindful of the fact that will shorten the cash runway. Eclipse Metals makes us a little nervous due to its lack of substantial operating revenue. We prefer most of the stocks on this list of stocks that analysts expect to grow.

Can Eclipse Metals Raise More Cash Easily?

Given its cash burn trajectory, Eclipse Metals shareholders may wish to consider how easily it could raise more cash, despite its solid cash runway. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. Many companies end up issuing new shares to fund future growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.

Since it has a market capitalisation of AU$28m, Eclipse Metals' AU$366k in cash burn equates to about 1.3% of its market value. So it could almost certainly just borrow a little to fund another year's growth, or else easily raise the cash by issuing a few shares.

Is Eclipse Metals' Cash Burn A Worry?

As you can probably tell by now, we're not too worried about Eclipse Metals' cash burn. For example, we think its cash burn relative to its market cap suggests that the company is on a good path. While its increasing cash burn wasn't great, the other factors mentioned in this article more than make up for weakness on that measure. After taking into account the various metrics mentioned in this report, we're pretty comfortable with how the company is spending its cash. On another note, we conducted an in-depth investigation of the company, and identified 4 warning signs for Eclipse Metals (1 doesn't sit too well with us!) that you should be aware of before investing here.

If you would prefer to check out another company with better fundamentals, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt or this list of stocks which are all forecast to grow.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Vancouver, British Columbia–(Newsfile Corp. – January 15, 2021) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to report that its subsidiary, Barplats Mines (Pty) Ltd. ("Barplats"), has confirmed the provisional payment terms of the first delivered shipment (See news release of January 6, 2021) of pressed filter cake platinum group metals ("PGM") concentrate under the existing offtake agreement between Barplats and Impala Refining Services Limited, now Impala Platinum Limited (the "PGM Offtake Agreement"). These terms confirm the restart of PGM revenue by the Company.

RIGHTS OFFERING

The shareholders of the Company were issued rights to acquire common shares as of December 18, 2020. The rights are currently trading on the TSX under the symbol "ELR.RT" and the JSE under the symbol "EPSN".

The Company is beginning to obtain confirmations of rights exercise and the Company confirms the rights offering will close on January 22, 2021.

A copy of the Notice of Rights Offering and the Rights Offering Circular are available under the Company's profile on SEDAR at www.sedar.com and on the Company's website www.eastplats.com/investors-2/rights-offering.

CAPITAL PROJECTS

As a result of some initial confirmations of rights exercise, the Company has begun the detailed planning regarding the intended reconfiguring and procurement initiatives on both the small-scale PGM circuit (previously the scavenger plant circuit) ("PGM Circuit D") and the existing main PGM facility ("PGM Circuit 1"). This work will allow quicker procurement upon the closing of the rights offering. The optimization of the PGM Circuit D and the refurbishment of the PGM Circuit 1 are intended to stabilize existing production and increase the capacity of the PGM recovery and sales.

Diana Hu, the President and CEO of Eastplats, stated that, "the initial confirmation of exercises of the rights offering has allowed the Company to allocate time and begin the planning work on the PGM Circuit D and PGM Circuit 1. These projects expand Eastplats PGM processing capacity and potential revenue sources. The Company looks forward to the completion and closing of the rights offering and to then continue the development of opportunities in South Africa for its shareholders."

2020 OPERATIONS

The Company is pleased to confirm that Barplats produced 987,003 tons of chrome concentrate during 2020 and was able to deliver 960,776 tons under the offtake agreement with Union Goal Offshore Solutions Inc. The Company is very pleased to have successfully operated the Chrome Retreatment Project for 309 days in 2020. Non-operating days include planned shutdowns, adverse weather, and South African lockdowns and closures related to COVID-19.

COVID-19

South Africa remains at alert level 3 regarding COVID-19 cases. The Company continues to follow the health guidelines of the Government of South Africa. The Retreatment Project remains in full operation and continues to produce and transport chrome and PGM end products. The effects of COVID-19 are evolving and changing and the consequences of a further increase in the alert level in South Africa, temporary shutdown of any operations or other related issues cannot be reasonably estimated at this time, but could potentially have material adverse effects on the Company's business, operations, liquidity and cashflows.

For further information, please contact:

EASTERN PLATINUM LIMITEDRowland Wallenius, Chief Financial Officerrwallenius@eastplats.com (email)(604) 800-8200 (phone)

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "will", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedar.com.

In particular, this press release contains, without limitation, forward-looking statements pertaining to: estimated operations and production of PGM Circuit D and the PGM Circuit 1 ; estimated ramp up or upgrades to the PGM Circuit D and the PGM Circuit 1; potential additional revenue from the PGM Circuit D and the PGM Circuit 1; potential proceeds from the rights offering and the use of such proceeds, if any; potential opportunities in South Africa or the Company's ability to develop them; potential effects of COVID-19 such as a new lockdown imposed by the Government of South Africa; and any future measures taken by the Government of South Africa and their impact on the Company, and its business, operations, liquidity and cashflows. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in our production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.

All forward-looking statements in this press release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedar.com. The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/72121

With the business potentially at an important milestone, we thought we'd take a closer look at Andromeda Metals Limited's (ASX:ADN) future prospects. Andromeda Metals Limited, together with its subsidiaries, operates as a mineral exploration company in Australia. The AU$656m market-cap company announced a latest loss of AU$3.4m on 30 June 2020 for its most recent financial year result. As path to profitability is the topic on Andromeda Metals' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Andromeda Metals

Expectations from some of the Australian Metals and Mining analysts is that Andromeda Metals is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of AU$3.6m in 2022. So, the company is predicted to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 57%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Andromeda Metals' upcoming projects, but, keep in mind that typically a metal and mining business has lumpy cash flows which are contingent on the natural resource mined and stage at which the company is operating. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one aspect worth mentioning. Andromeda Metals currently has no debt on its balance sheet, which is rare for a loss-making metals and mining company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Andromeda Metals to cover in one brief article, but the key fundamentals for the company can all be found in one place – Andromeda Metals' company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Valuation: What is Andromeda Metals worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Andromeda Metals is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Andromeda Metals’s board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. But the harsh reality is that very many loss making companies burn through all their cash and go bankrupt.

So, the natural question for Renascor Resources (ASX:RNU) shareholders is whether they should be concerned by its rate of cash burn. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. First, we'll determine its cash runway by comparing its cash burn with its cash reserves.

Check out our latest analysis for Renascor Resources

How Long Is Renascor Resources' Cash Runway?

A company's cash runway is the amount of time it would take to burn through its cash reserves at its current cash burn rate. As at June 2020, Renascor Resources had cash of AU$1.9m and no debt. Importantly, its cash burn was AU$2.8m over the trailing twelve months. Therefore, from June 2020 it had roughly 8 months of cash runway. To be frank, this kind of short runway puts us on edge, as it indicates the company must reduce its cash burn significantly, or else raise cash imminently. Depicted below, you can see how its cash holdings have changed over time.

How Is Renascor Resources' Cash Burn Changing Over Time?

Because Renascor Resources isn't currently generating revenue, we consider it an early-stage business. Nonetheless, we can still examine its cash burn trajectory as part of our assessment of its cash burn situation. Given the length of the cash runway, we'd interpret the 47% reduction in cash burn, in twelve months, as prudent if not necessary for capital preservation. Admittedly, we're a bit cautious of Renascor Resources due to its lack of significant operating revenues. So we'd generally prefer stocks from this list of stocks that have analysts forecasting growth.

How Easily Can Renascor Resources Raise Cash?

Even though it has reduced its cash burn recently, shareholders should still consider how easy it would be for Renascor Resources to raise more cash in the future. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).

Renascor Resources has a market capitalisation of AU$28m and burnt through AU$2.8m last year, which is 10.0% of the company's market value. That's a low proportion, so we figure the company would be able to raise more cash to fund growth, with a little dilution, or even to simply borrow some money.

Is Renascor Resources' Cash Burn A Worry?

On this analysis of Renascor Resources' cash burn, we think its cash burn reduction was reassuring, while its cash runway has us a bit worried. Even though we don't think it has a problem with its cash burn, the analysis we've done in this article does suggest that shareholders should give some careful thought to the potential cost of raising more money in the future. An in-depth examination of risks revealed 4 warning signs for Renascor Resources that readers should think about before committing capital to this stock.

Of course Renascor Resources may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

QUÉBEC CITY, Jan. 14, 2021 (GLOBE NEWSWIRE) — Robex Resources Inc. (“Robex” or the “Company”) (TSXV: RBX/FRA: RB4) is preparing for the future and furthering its expertise as it appoints Serge Telle as special advisor to management and the board of directors, and Aurélien Bonneviot as Head of Investor relations and Corporate development.

Serge Telle is a French ambassador with significant experience in international relations. He joined the French Foreign Service in 1982 and was appointed at the French embassy in Dar es Salam, Tanzania. He has developed great expertise in the UN system after spending 5 years at the Permanent Mission of France in New York, from 1983 to 1988. He then spent almost 5 years as head of the coordination structure for humanitarian affairs in the UN’s Geneva office, from 1993 to 1997.

Serge Telle has worked with a number of political figures. He was diplomatic advisor to the minister of humanitarian affairs, Bernard Kouchner, and worked with the French Prime Minister, Lionel Jospin.

Serge Telle served as the first French ambassador to Monaco in 2005 and was subsequently appointed Minister of State (Prime Minister), from January 2016 until September 2020.

Aurélien Bonneviot has more than a decade of experience in capital markets and was most recently Senior Investment Manager at Greenstone Resources, a private equity fund specializing in the mining sector. Aurélien Bonneviot started as a sell-side mining analyst at Société Générale and Oddo-BHF and subsequently moved to the buy side as commodities analyst and portfolio manager at SMA Gestion. In 2014, Aurélien Bonneviot joined Louis Dreyfus Metals (now IXM) as a Business Development Manager until its acquisition by China Molybdenum in 2018.

Benjamin Cohen, CEO: “We warmly welcome Serge and Aurélien to our team. They will both bring a very complementary skillset to our team as we look to grow our company beyond Nampala. I believe that 2021 will be an exciting year for us as we have a highly profitable operation and an ambitious exploration program, and with these two additions we will now be able to transact on the opportunities we see in West Africa.”

George Cohen, Chairman: “I have known Serge Telle for decades. He will be able to guide our team in the complex world of international relations in Africa. Together with Aurélien Bonneviot, they will help management deliver our strategy to create a group with multiple assets and a strong business model aligned with shareholder value creation.”

For more information about Robex, please visit our website at https://robexgold.com/en/.

About Robex:

Robex Gold is a TSX-V listed company with exploration properties in Mali and an operating mine that produced 39,267 ounces of gold in the first 9 months of 2020. The group has a strong business model, which demonstrated great results with the Nampala mine. With this experience, Robex is now striving to grow in West Africa by acquiring and/or developing new mines.

For more information:

Benjamin Cohen, CEO
Aurélien Bonneviot, investor relations and corporate development
a.bonneviot@robexgold.com
Head office: +1(581) 741-7421

This press release contains statements that may be considered “forecast information” or “forecast statements” in terms of security rights. These forecasts are subject to uncertainties and risks, some of which are beyond the control of Robex. Achievements and final results may differ significantly from implicit or explicit forecasts. These differences can be attributed to many factors, including market volatility, the impact of the exchange rate and interest rate fluctuations, mispricing, the environment (tighter regulations), unforeseen geological situations, unfavourable operating conditions, political risks inherent in mining in developing countries, changes in government policies or regulations (laws and policies), an inability to obtain necessary permits and approvals from government agencies, or any other risk associated with mining and development. There can be no assurance that the circumstances set out in these forecasts will occur, or even benefit Robex. The forecasts are based on the estimates and opinions of the Robex management team at the time of publication. Robex makes no commitment to make any updates or changes to these publicly available forecasts based on new information or events, or for any other reason, except as required by applicable security laws. The TSX Venture Exchange or the Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) assumes no responsibility for the authenticity or accuracy of this press release.

TILBURY, ON and CALGARY, AB, Jan. 12, 2021 /CNW/ – The Board of Directors of RS Technologies Inc. ("RS" or the "Company") is pleased to announce the appointment of Donald J. Lowry as Chairman of the Board, effective December 9, 2020. Prior to his appointment as Chairman, Don has been an independent director of RS since the fall of 2019. David Werklund, who has served as Chairman since 2013, is stepping down from his role and will remain on the Company's Board of Directors. The Board thanks David for his stellar leadership as Chairman and his guidance in navigating RS to where it is today.

"We are very fortunate to have attracted someone with Don's North American utility industry background and capital markets experience," stated David Werklund. "Don brings a seasoned perspective to our discussions and has become an indispensable part of our Board. We look forward to working with Don in his new capacity as Chairman."

"RS is thrilled to benefit from Don's wealth of experience, particularly his focus on ESG matters as it aligns well with RS's composite utility poles that are industry leading in environmental and sustainability performance," said Howard Elliott, President and CEO of RS.

About RS Technologies Inc. (RS)
RS designs and manufactures the world's highest-performing composite utility poles that are safer, more reliable and longer-lasting than wood, steel, and concrete poles. RS poles are used in transmission (up to 345kV), distribution and communication applications, are environmentally friendly and consistently deliver the lowest total installed and lifecycle cost solution of any pole on the market. More information on RS and its poles is available at RSpoles.com.

View original content to download multimedia:http://www.prnewswire.com/news-releases/rs-technologies-inc-board-of-directors-appoints-donald-j-lowry-as-new-chairman-301207033.html

SOURCE RS Technologies Inc.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/January2021/12/c9954.html

VANCOUVER, British Columbia, Jan. 13, 2021 (GLOBE NEWSWIRE) — Novo Resources Corp. (“Novo” or the “Company”) (TSX: NVO & NVO.WT; OTCQX: NSRPF) is pleased to announce that Mr. Michael Spreadborough has accepted an invitation to join its board of directors.

Michael Spreadborough is currently CEO of Metals X Limited (ASX: MLX) and previously Managing Director & CEO of Nusantara Resources and a Non-Executive Director of CleanTeQ Holdings. Mr. Spreadborough has a mining engineering background, with over 30 years’ experience in mining lead, zinc, uranium, copper, gold and iron ore.

He has held roles across the scope of the resources industry from business and project development, to operations and exploration. In recent times, Mr. Spreadborough was the General Manager – Mining for Western Mining Corporation, and then later the Vice President – Mining for BHP Billiton, at the world-class Olympic Dam Mine in South Australia. Mr. Spreadborough was previously the General Manager – Coastal Operations for Rio Tinto, responsible for port operations and the Pannawonica mine site in the Pilbara region of Western Australia. He then assumed the position of Chief Operating Officer for Inova Resources Ltd (formerly Ivanhoe Australia) and Sandfire Resources.

Mr. Spreadborough holds a Bachelor of Mining Engineering from the University of Queensland, an MBA from Deakin University, and a WA First Class Mine Manager’s Certificate of Competency. Additionally, Mr. Spreadborough is a Fellow of the Australasian Institute of Mining and Metallurgy and a member of the Australian Institute of Company Directors.

“Novo is delighted to welcome Mr. Spreadborough to our board of directors,” commented Dr. Quinton Hennigh, President and Chairman of the Company. “Mr. Spreadborough brings with him a wealth of Australian resource industry operational experience and international executive public company experience. His experience strengthens operational oversight within Novo’s board. We look forward to working with Mike as we advance towards production.”

The Company is also pleased to report that development at its Nullagine gold project continues in line with schedule and budget. Further detailed operational updates will be released over the coming weeks.

About Novo Resources Corp.

Novo is advancing its flagship Beatons Creek gold project to production while exploring and developing its highly prospective land package covering approximately 14,000 square kilometres in the Pilbara region of Western Australia. In addition to the Company’s primary focus, Novo seeks to leverage its internal geological expertise to deliver value-accretive opportunities to its shareholders. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail leo@novoresources.com

On Behalf of the Board of Directors,

Novo Resources Corp.

“Quinton Hennigh”

Quinton Hennigh
President and Chairman

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it seems the smart money knows that debt – which is usually involved in bankruptcies – is a very important factor, when you assess how risky a company is. We note that Robex Resources Inc. (CVE:RBX) does have debt on its balance sheet. But the more important question is: how much risk is that debt creating?

When Is Debt A Problem?

Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. If things get really bad, the lenders can take control of the business. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, plenty of companies use debt to fund growth, without any negative consequences. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.

Check out our latest analysis for Robex Resources

What Is Robex Resources's Net Debt?

The image below, which you can click on for greater detail, shows that Robex Resources had debt of CA$7.96m at the end of September 2020, a reduction from CA$23.5m over a year. However, its balance sheet shows it holds CA$9.41m in cash, so it actually has CA$1.45m net cash.

A Look At Robex Resources' Liabilities

Zooming in on the latest balance sheet data, we can see that Robex Resources had liabilities of CA$18.4m due within 12 months and liabilities of CA$8.05m due beyond that. Offsetting this, it had CA$9.41m in cash and CA$4.95m in receivables that were due within 12 months. So its liabilities total CA$12.1m more than the combination of its cash and short-term receivables.

Of course, Robex Resources has a market capitalization of CA$278.6m, so these liabilities are probably manageable. However, we do think it is worth keeping an eye on its balance sheet strength, as it may change over time. Despite its noteworthy liabilities, Robex Resources boasts net cash, so it's fair to say it does not have a heavy debt load!

Even more impressive was the fact that Robex Resources grew its EBIT by 469% over twelve months. That boost will make it even easier to pay down debt going forward. There's no doubt that we learn most about debt from the balance sheet. But it is Robex Resources's earnings that will influence how the balance sheet holds up in the future. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.

But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. While Robex Resources has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. Over the last three years, Robex Resources recorded free cash flow worth a fulsome 90% of its EBIT, which is stronger than we'd usually expect. That puts it in a very strong position to pay down debt.

Summing up

While it is always sensible to look at a company's total liabilities, it is very reassuring that Robex Resources has CA$1.45m in net cash. The cherry on top was that in converted 90% of that EBIT to free cash flow, bringing in CA$49m. So is Robex Resources's debt a risk? It doesn't seem so to us. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet – far from it. Be aware that Robex Resources is showing 1 warning sign in our investment analysis , you should know about…

Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

VANCOUVER, BC / ACCESSWIRE / January 6, 2021 / GGL Resources Corp. (TSXV:GGL) ("GGL" or the "Company") is pleased to announce the results of reconnaissance-scale prospecting and surface sampling conducted in late October at its past-producing Gold Point mesothermal gold/silver project, located in the Walker Lane Trend, southwestern Nevada. The Company also reports that its initial program of underground sampling has recently been completed at the Great Western Mine, one of the two main former producers on the Gold Point property.

The surface work was designed to confirm the location of historical workings and tailings storage areas, characterize historically documented vein exposures, prospect for undocumented veins and assess the accessibility of historical underground workings for future work program planning.

Highlights from surface sampling include:

• 64.6 g/t gold and 110 g/t silver from the ore bin at the Orleans Mine;

• 51.6 g/t gold and 230 g/t silver float sample collected from a structure parallel to the nearby Great Western Vein;

• 30.3 g/t gold and 27.4 g/t gold grab samples taken from previously undocumented veins located 30 m apart; and

• 25.1 g/t gold collected from a waste pile adjacent to a shaft targeting an undocumented vein.

"We are extremely excited about the results from our reconnaissance-scale exploration at the Gold Point property," stated David Kelsch, President of GGL. "The results not only confirm the presence of significant mineralization at the known past-producing mines, but also demonstrate excellent potential elsewhere on the property in areas that have seen little historical work. We look forward to the results from our initial underground sampling campaign."

The following table lists samples grading greater than 3 g/t gold that were collected across the property as shown on the attached figure.

Tailings
During the surface exploration program, samples were collected from historical tailings storage facilities to determine if potentially economical gold and silver remain. Records indicate the tailings storage facilities were established in the 1930s or earlier. They cover an area of approximately 23,000 m² and range from 0.4 m to 2.0 m in thickness.

Twenty-five representative samples were collected from the main tailings storage area and, another six samples collected from a smaller secondary area, believed to be older. Samples collected from the main tailings storage area returned 0.286 g/t gold to 3.62 g/t gold (averaging 1.04 g/t gold), while the samples collected from the secondary storage area ranged from 1.645 g/t gold to 27.4 g/t gold (averaging 2.62 g/t gold excluding the highest grade sample).

Detailed surveying, sampling, and testing are planned to accurately determine the volume and grade of the tailings, as well as recoverability of gold and silver.

Underground Sampling
Access to the underground workings at the Great Western Mine was re-established in December 2020. Field crews have now completed sampling of the 100 through 500 levels of the mine with the collection of 169 chip samples. Results will be released upon completion.

Next Steps
Planning and permitting are underway for the next exploration program, expected to commence in Q1 of this year. This program is fully funded and will include reverse-circulation drilling, excavator trenching, rehabilitation work, and sampling at the Orleans Mine, the other main, former producer on the property. The initial drilling will test near to and along strike of known mineralization at the Great Western Mine. Later drill programs will be designed to test targets elsewhere on this under-explored project as additional results become available and comprehensive geological models are developed.

About Gold Point
The Gold Point project is accessible via highway 774 and serviced by electricity. It hosts a camp-scale precious metal system that consists of numerous gold and silver rich quartz veins. These high-grade veins are typically 1 to 2 m in width and locally up to 7 m wide. Two veins (Orleans and Great Western) were intermittently mined from the 1880s through to the early 1960s. Existing underground workings are mostly open and are dry to approximately 275 m below surface on the Orleans Vein (1020 ft level) and 240 m on the Great Western Vein, (960 ft level). Historical records indicate that the mines had high cut-off grades (about 10 g/t gold), suggesting that well mineralized areas likely remain in un-mined portions of the developed workings. This assumption is further supported by a report that describes 35 historical samples collected post-mining across the Orleans Vein from the 960 ft to 1020 ft levels, which averaged 0.389 opt (13.3 g/t) gold including a vein on the 1000 ft level that returned 7.97 opt (273.2 g/t) gold over 0.5 m. Additionally, 21 samples from the 600 ft to 1020 ft levels reportedly averaged 0.314 opt (10.77 g/t) gold. Historical records indicate that approximately 74,000 ounces were produced from the Orleans and Great Western Mines, with recoveries of 92% to 98% for gold through cyanidation.

All analyses were performed by ALS Minerals in Reno, Nevada. All samples were routinely analyzed for gold by a 50 g fire assay followed by atomic absorption (Au-AA24 or Au-AA26) and 48 elements by inductively coupled plasma-mass spectrometry (ME-MS61).

Technical information in this news release has been reviewed and approved by Matthew R. Dumala, P.Eng., a geological engineer with Archer, Cathro & Associates (1981) Limited and a qualified person for the purposes of National Instrument 43-101.

About GGL Resources Corp.
GGL is a seasoned, Canadian-based junior exploration company, focused on the exploration and advancement of under evaluated mineral assets in politically stable, mining friendly jurisdictions. The Company has recently acquired an option on the Gold Point project in the prolific Walker Lane Trend, Nevada, which consolidated several gold-silver veins, two of which were past producing high-grade mines. The Company also holds the McConnell gold-copper project located 22 kilometers southeast of the Kemess Mine in north-central BC, and promising diamond exploration projects in Nunavut and the Lac de Gras diamond district of the Northwest Territories. Lac de Gras is home to Canada's first two diamond mines, the world class Diavik and Ekati mines discovered in the 1990s. GGL also holds diamond royalties on mineral leases in close proximity to the Gahcho Kué diamond mine in the Northwest Territories.

ON BEHALF OF THE BOARD
"David Kelsch"
David Kelsch
President, COO and Director

For further information concerning GGL Resources Corp. or its various exploration projects please visit our website at www.gglresourcescorp.com or contact:

Investor Inquiries
Richard Drechsler
Corporate Communications
Tel: (604) 687-2522
NA Toll-Free: (888) 688-2522
rdrechsler@strategicmetalsltd.com

Corporate Information
Linda Knight
Corporate Secretary
Tel: (604) 688-0546
info@gglresourcescorp.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.

SOURCE: GGL Resources Corp.

View source version on accesswire.com:
https://www.accesswire.com/623201/GGL-Resources-Corp-Announces-Initial-Sampling-Results-from-Gold-Point-Nevada

MELBOURNE, Australia, Jan. 6, 2021 /CNW/ – AustralianSuper announces that it acquired 47,534,965 ordinary shares ("Shares") in the capital of Jervois Mining Limited (ASX: JRV) (TSXV: JRV) ("Jervois") on 27 October 2020 and a further 13,120,773 Shares on 3 December 2020, such that immediately following the second acquisition, AustralianSuper held a total of 108,450,700 (or approximately 13.71%) of the issued and outstanding Shares in Jervois.

The Shares were acquired pursuant to private placements by Jervois to institutional and sophisticated investors. The average purchase price per Share was AUD0.305/CAD0.29 for an aggregate total purchase consideration of AUD18.5 million/CAD17.6 million.

The head office of Jervois is located at Suite 508, 737 Burwood Road, Hawthorn East, Victoria, 3123, Australia.

AustralianSuper acquired the Shares for investment purposes in the normal course of its business and not with the purpose of influencing the control or direction of Jervois. AustralianSuper may in the future, subject to market conditions, make additional investments in or dispositions of Jervois' securities for investment purposes.

This news release is issued by AustralianSuper pursuant to National Instrument 62-104 Take-Over Bids and Issuer Bids of the Canadian Securities Administrators. AustralianSuper will file a report in respect of its acquisition of Shares with the applicable securities commission or securities regulator in each Canadian jurisdiction in which Jervois is a reporting issuer. A copy of the report may be obtained from Janine Cooper (phone: +61 3 8677 3203) at Level 33/50 Lonsdale Street Melbourne, Victoria, 3000, Australia. AustralianSuper has also made the necessary disclosures on the Australian Stock Exchange (ASX).

About AustralianSuper

AustralianSuper is Australia's largest superannuation fund and is regulated by the Australian Prudential Regulation Authority. AustralianSuper manages more than A$200 billion of members' retirement savings on behalf of more than 2.3 million members from around 333,000 businesses as at 30 November 2020.

SOURCE AustralianSuper

View original content: http://www.newswire.ca/en/releases/archive/January2021/06/c5867.html

VANCOUVER, BC / ACCESSWIRE / January 5, 2021 / International Millennium Mining Corp. (TSXV:IMI) (the “Company” or “IMMC”) is pleased to announce that further to its June 12, 2020, announcement of the resignation of its chief financial officer, the directors of the Company have approved the appointment of Mr. Lonny Wong as chief financial officer of the Company.

Mr. Wong is a founding partner at Saturna Group Chartered Professional Accountants LLP and has extensive experience serving public companies. Saturna Group is a boutique firm specializing in providing accounting, auditing, assurance, and consulting services to public companies and companies looking to go public in Canada or in the United States.

Stock Option Grant
The Company also announces the issuance of 300,000 stock options with an exercise price of $0.05 cents per share for the purchase of up to 300,000 shares of the Company, expiring July 7, 2025. The stock options are being issued to Mr. Wong, and are subject to approval by regulatory authorities.

International Millennium Mining Corp. (TSXV:IMI) is focused on the exploration and development of its Silver Peak silver-gold project in southwest Nevada. The Company's common shares trade on the Exchange under the symbol: IMI.

ON BEHALF OF THE BOARD
“John A. Versfelt”
John A. Versfelt
President and CEO

Further information about the Company can be found on SEDAR , the Company's website or by contacting Mr. John Versfelt, President & CEO of the Company at 604-527-8135.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs and other business transactions timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

SOURCE: International Millennium Mining Corp.

View source version on accesswire.com:
https://www.accesswire.com/623232/International-Millennium-Mining-Corp-Announces-Officer-Appointment

Whilst it may not be a huge deal, we thought it was good to see that the TNR Gold Corp. (CVE:TNR) Executive Chairman, Kirill Klip, recently bought CA$50k worth of stock, for CA$0.05 per share. Although the purchase is not a big one, increasing their shareholding by only 3.0%, it can be interpreted as a good sign.

View our latest analysis for TNR Gold

TNR Gold Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Chairman Kirill Klip was not their only acquisition of TNR Gold shares this year. They previously made an even bigger purchase of CA$102k worth of shares at a price of CA$0.03 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.065. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months TNR Gold insiders were buying shares, but not selling. Their average price was about CA$0.036. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TNR Gold is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of TNR Gold

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. TNR Gold insiders own about CA$5.0m worth of shares (which is 45% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At TNR Gold Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about TNR Gold. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TNR Gold. Case in point: We've spotted 3 warning signs for TNR Gold you should be aware of, and 1 of them is a bit concerning.

But note: TNR Gold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Most readers would already be aware that Western Areas' (ASX:WSA) stock increased significantly by 28% over the past three months. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to study its financial indicators more closely to see if they had a hand to play in the recent price move. Specifically, we decided to study Western Areas' ROE in this article.

ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital.

View our latest analysis for Western Areas

How To Calculate Return On Equity?

Return on equity can be calculated by using the formula:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

So, based on the above formula, the ROE for Western Areas is:

6.1% = AU$32m ÷ AU$526m (Based on the trailing twelve months to June 2020).

The 'return' is the yearly profit. One way to conceptualize this is that for each A$1 of shareholders' capital it has, the company made A$0.06 in profit.

What Is The Relationship Between ROE And Earnings Growth?

We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.

Western Areas' Earnings Growth And 6.1% ROE

When you first look at it, Western Areas' ROE doesn't look that attractive. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 13%. In spite of this, Western Areas was able to grow its net income considerably, at a rate of 34% in the last five years. So, there might be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently.

We then performed a comparison between Western Areas' net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 32% in the same period.

The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. What is WSA worth today? The intrinsic value infographic in our free research report helps visualize whether WSA is currently mispriced by the market.

Is Western Areas Using Its Retained Earnings Effectively?

The three-year median payout ratio for Western Areas is 28%, which is moderately low. The company is retaining the remaining 72%. So it seems that Western Areas is reinvesting efficiently in a way that it sees impressive growth in its earnings (discussed above) and pays a dividend that's well covered.

Additionally, Western Areas has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 27%. Therefore, the company's future ROE is also not expected to change by much with analysts predicting an ROE of 5.4%.

Conclusion

On the whole, we do feel that Western Areas has some positive attributes. Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Vancouver, British Columbia–(Newsfile Corp. – January 6, 2021) –  Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to report that during December 2020 its subsidiary, Barplats Mines (Pty) Ltd. ("Barplats"), delivered its first shipment of pressed filter cake platinum group metals ("PGM") concentrate under the existing offtake agreement between Barplats and Impala Refining Services Limited, now Impala Platinum Limited (the "Offtake Agreement").

During 2020, the Company completed the refurbishment of the small-scale PGM circuit (previously the scavenger plant circuit) ("PGM Circuit D"). The Company only restarted and began operating the PGM Circuit D during Q3 2020 (following the mandatory general lockdown imposed by the Government of South Africa in connection with the COVID-19 pandemic). The Company has generated approximately 134 tons of pressed filter cake PGM concentrate and delivered approximately 32.18 tons during 2020 under the Offtake Agreement. The Company forecasts continued ramping up of the PGM Circuit D production and additional revenue from it during 2021.

Barplats' tailings retreatment project located at its Crocodile River Mine (the "Retreatment Project") has been recovering chrome since December 2018. With the refurbishment and operation of the PGM Circuit D, and utilizing the Retreatment Project source material, the Company is now able to generate PGM revenue.

Diana Hu, the President and CEO of Eastplats, stated that "Operating the PGM Circuit D allows the Company to diversify its revenue sources and is a direct benefit of the Retreatment Project. To build on this success, Eastplats intends to use part of the expected proceeds from the currently ongoing rights offering (See News Release of December 11, 2020) to further upgrade the PGM Circuit D and refurbish the existing main PGM facility thereby expanding its PGM processing capacity and potential revenue sources. The Company is pleased to continue the development of opportunities in South Africa for its shareholders."

RIGHTS OFFERING

The shareholders of the Company were issued rights to acquire common shares as of December 18, 2020. The rights are currently trading on the TSX under the symbol "ELR.RT" and the JSE under the Symbol "EPSN".

A copy of the Notice of Rights Offering and the Rights Offering Circular are available under the Company's profile on SEDAR at www.sedar.com and on the Company's website www.eastplats.com/investors-2/rights-offering.

The rights offering will close on January 22, 2021.

COVID-19

Effective December 29, 2020 South Africa has raised its alert level to level 3, in response to an increase in COVID-19 cases. The Company continues to follow the health guidelines of the Government of South Africa. The Retreatment Project remains in full operation and continues to produce and transport chrome and PGM end product. The effects of COVID-19 are evolving and changing and the consequences of a further increase in the alert level in South Africa, temporary shutdown of any operations or other related issues cannot be reasonably estimated at this time, but could potentially have material adverse effects on the Company's business, operations, liquidity and cashflows.

For further information, please contact:

EASTERN PLATINUM LIMITEDRowland Wallenius, Chief Financial Officerrwallenius@eastplats.com (email)(604) 800-8200 (phone)

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "will", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedar.com.

In particular, this press release contains, without limitation, forward-looking statements pertaining to: estimated operations and production of PGM Circuit D; estimated ramp up or upgrades to the PGM Circuit D; potential additional revenue from the PGM Circuit D; potential proceeds from the rights offering and the use of such proceeds, if any; potential opportunities in South Africa or the Company's ability to develop them; potential effects of COVID-19 such as a new lockdown imposed by the Government of South Africa; and any future measures taken by the Government of South Africa and their impact on the Company, and its business, operations, liquidity and cashflows. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in our production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.

All forward-looking statements in this press release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedar.com. The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/71438

This article will reflect on the compensation paid to Ian Warland who has served as CEO of Twenty Seven Co. Limited (ASX:TSC) since 2018. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Twenty Seven.

Check out our latest analysis for Twenty Seven

Comparing Twenty Seven Co. Limited's CEO Compensation With the industry

Our data indicates that Twenty Seven Co. Limited has a market capitalization of AU$13m, and total annual CEO compensation was reported as AU$226k for the year to June 2020. That's just a smallish increase of 3.1% on last year. In particular, the salary of AU$180.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$260m, we found that the median total CEO compensation was AU$350k. That is to say, Ian Warland is paid under the industry median. Moreover, Ian Warland also holds AU$80k worth of Twenty Seven stock directly under their own name.

Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. Our data reveals that Twenty Seven allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Twenty Seven Co. Limited's Growth Numbers

Over the last three years, Twenty Seven Co. Limited has shrunk its earnings per share by 2.3% per year. Its revenue is up 127% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Twenty Seven Co. Limited Been A Good Investment?

With a three year total loss of 40% for the shareholders, Twenty Seven Co. Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude…

As we touched on above, Twenty Seven Co. Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But poor shareholder returns EPS growth have hampered the company over the past three years. Conversely, revenues are increasing at a healthy pace, recently. Though we believe Ian is modestly compensated, shareholders might want to see positive shareholder returns before agreeing compensation should be raised.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 6 warning signs for Twenty Seven (of which 5 are significant!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Vancouver, British Columbia–(Newsfile Corp. – December 31, 2020) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") announces that it has received a petition filed with the Supreme Court of British Columbia, by Xiaoling Ren, a shareholder of the Company, seeking leave from the court to commence a derivative action on behalf of the Company against certain of its current and former directors. Ms. Ren is represented by the same law firm who filed a similar petition in November 2018 (See News Release of November 9, 2018) that was dismissed by the Supreme Court of British Columbia (see News Release of August 29, 2019) in a decision affirmed by the Court of Appeal for British Columbia (see News Release of November 17, 2020).

The Company will seek advice and make a recommendation on the appropriate action.

For further information, please contact:

EASTERN PLATINUM LIMITEDRowland Wallenius, Corporate Secretary and Chief Financial OfficerRwallenius@eastplats.com (email)(604) 800-8200 (phone)

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "will", "could", "expects", "anticipates" and similar expressions.

In particular, this press release contains forward-looking statements pertaining to: the timing and actions of the Company. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, commodity prices, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.

The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/71204

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Encounter Resources Limited (ASX:ENR), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Encounter Resources

The Last 12 Months Of Insider Transactions At Encounter Resources

The MD & Executive Director William Robinson made the biggest insider purchase in the last 12 months. That single transaction was for AU$100k worth of shares at a price of AU$0.19 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.18). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Encounter Resources insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Encounter Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at Encounter Resources Have Bought Stock Recently

It's good to see that Encounter Resources insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$400k worth of shares. That shows some optimism about the company's future.

Insider Ownership of Encounter Resources

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 18% of Encounter Resources shares, worth about AU$10m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Encounter Resources Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Encounter Resources insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 6 warning signs (2 can't be ignored!) that you ought to be aware of before buying any shares in Encounter Resources.

Of course Encounter Resources may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in White Energy Company Limited (ASX:WEC).

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

View our latest analysis for White Energy

White Energy Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non-Executive Chairman of the Board Travers Duncan for AU$2.4m worth of shares, at about AU$0.06 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.10), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months White Energy insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does White Energy Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that White Energy insiders own 47% of the company, worth about AU$44m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At White Energy Tell Us?

There haven't been any insider transactions in the last three months — that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like White Energy insiders think the business has merit. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 4 warning signs for White Energy (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.

Of course White Energy may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

It is hard to get excited after looking at Red Metal's (ASX:RDM) recent performance, when its stock has declined 4.3% over the past three months. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. In this article, we decided to focus on Red Metal's ROE.

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.

Check out our latest analysis for Red Metal

How Do You Calculate Return On Equity?

The formula for ROE is:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

So, based on the above formula, the ROE for Red Metal is:

16% = AU$259k ÷ AU$1.6m (Based on the trailing twelve months to June 2020).

The 'return' is the income the business earned over the last year. So, this means that for every A$1 of its shareholder's investments, the company generates a profit of A$0.16.

What Is The Relationship Between ROE And Earnings Growth?

Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.

Red Metal's Earnings Growth And 16% ROE

At first glance, Red Metal seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 13%. This certainly adds some context to Red Metal's decent 20% net income growth seen over the past five years.

We then compared Red Metal's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 32% in the same period, which is a bit concerning.

Earnings growth is an important metric to consider when valuing a stock. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about Red Metal's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

Is Red Metal Using Its Retained Earnings Effectively?

Summary

On the whole, we feel that Red Metal's performance has been quite good. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a respectable growth in its earnings. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Let's not forget, business risk is also one of the factors that affects the price of the stock. So this is also an important area that investors need to pay attention to before making a decision on any business. To know the 4 risks we have identified for Red Metal visit our risks dashboard for free.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell MetalCorp Limited (CVE:MTC), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for MetalCorp

MetalCorp Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Christopher Dougherty bought CA$202k worth of shares at a price of CA$0.03 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.06. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

MetalCorp insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

MetalCorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at MetalCorp Have Bought Stock Recently

We saw some MetalCorp insider buying shares in the last three months. Director Pierre Gagne purchased CA$18k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does MetalCorp Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 30% of MetalCorp shares, worth about CA$2.1m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The MetalCorp Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think MetalCorp insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 4 warning signs for MetalCorp (2 are significant) you should be aware of.

Of course MetalCorp may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Potential Hannans Limited (ASX:HNR) shareholders may wish to note that insider Christopher Reed recently bought AU$365k worth of stock, paying AU$0.0044 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 12%.

See our latest analysis for Hannans

Hannans Insider Transactions Over The Last Year

Notably, that recent purchase by Christopher Reed is the biggest insider purchase of Hannans shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$0.005. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Hannans insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Christopher Reed.

Christopher Reed bought 92.95m shares over the last 12 months at an average price of AU$0.0047. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 35% of Hannans shares, worth about AU$4.1m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Hannans Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Hannans insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 5 warning signs for Hannans (3 are potentially serious) you should be aware of.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Greg Hall became the CEO of Alligator Energy Limited (ASX:AGE) in 2018, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Alligator Energy

How Does Total Compensation For Greg Hall Compare With Other Companies In The Industry?

Our data indicates that Alligator Energy Limited has a market capitalization of AU$19m, and total annual CEO compensation was reported as AU$111k for the year to June 2020. That's a notable decrease of 17% on last year. We note that the salary portion, which stands at AU$74.8k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under AU$263m, the reported median total CEO compensation was AU$353k. In other words, Alligator Energy pays its CEO lower than the industry median. Moreover, Greg Hall also holds AU$151k worth of Alligator Energy stock directly under their own name.

Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. Alligator Energy pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Alligator Energy Limited's Growth Numbers

Alligator Energy Limited's earnings per share (EPS) grew 22% per year over the last three years. Its revenue is down 85% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Alligator Energy Limited Been A Good Investment?

With a three year total loss of 16% for the shareholders, Alligator Energy Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude…

As we touched on above, Alligator Energy Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, the company has impressed with its EPS growth over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. But shareholders will likely want to hold off on any raise for Greg until investor returns are positive.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 6 warning signs for Alligator Energy (2 shouldn't be ignored!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

VANCOUVER, British Columbia, Dec. 23, 2020 (GLOBE NEWSWIRE) — Sandfire Resources America Inc. (TSX.V: "SFR"; OTCQB: "SRAFF") ("Sandfire America" or the "Company") is pleased to announce that it has closed its previously announced rights offering, issuing 200,539,763 common shares of the Company for gross proceeds of $30,080,965 (the "Rights Offering"), representing 100% of the total rights offered.

The Company’s largest shareholder, Sandfire BC Holdings Inc. (“Sandfire BC”), fully exercised its basic subscription privilege to purchase its pro rata share of the common shares offered, being 170,869,433 common shares, and also purchased an additional 17,739,705 common shares through the exercise of its additional subscription privilege, for a total subscription of 188,609,138 common shares.

In total, 181,725,334 common shares issued in the Rights Offering were distributed under basic subscription privileges, of which 59,379 were distributed to insiders of the Company and 181,665,955 were distributed to non-insiders. 18,814,429 common shares were issued under additional subscription privileges, up to 50,000 of which were distributed to insiders of the Company and up to 18,764,429 were distributed to non-insiders. To the knowledge of the Company, no person became an insider as a result of the Rights Offering.

Upon completion of the Rights Offering, the total number of issued and outstanding common shares of the Company is now 1,022,752,794. Sandfire BC now owns 86.93% of the Company’s issued and outstanding common shares. The Company did not pay any fees or commissions in connection with the distribution of securities in the Rights Offering.

The Company intends to use the net proceeds of the rights offering to further advance the Black Butte Copper project, repay loans owed to Sandfire BC and for general working capital purposes. Further details of the Rights Offering are contained in the Company’s rights offering circular, which has been filed on SEDAR under the Company’s profile at www.sedar.com.

This news release shall not constitute an offer to sell or solicitation of an offer to buy the securities of the Company. There shall be no offer or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification of such securities under the laws of any such jurisdiction.

ABOUT SANDFIRE RESOURCES AMERICA INC.

Sandfire Resources America Inc. is a growth company focused on the exploration, development, and mining of its 100% owned flagship property, the Black Butte Copper project in central Montana, USA. The Company is led by a highly experienced executive management team that has a successful track record of building shareholder value through exploration, corporate finance, and mine development.

Contact Information:
Sandfire Resources America Inc.
Nancy Schlepp, Director of Public Affairs
Mobile: 406-224-8180
Office: 406-547-3466
Email: nschlepp@sandfireamerica.com

Cautionary statement regarding forward‐looking information

Certain disclosures in this release constitute “forward-looking information” within the meaning of Canadian securities legislation. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: expects, plans, anticipates, believes, intends, estimates, projects, assumes, potential and similar expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should occur, including, without limitation, statements regarding the Company’s plans for advancing the Black Butte Copper Project (including plans to complete permitting), the intended use of proceeds of the Rights Offering, resource estimates and expected outcomes. In making the forward-looking statements in this news release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company will be able to use the proceeds of the Rights Offering as anticipated, the Company’s permitting will proceed as expected; that the results of exploration and development activities are consistent with management’s expectations and that the assumptions underlying mineral resource estimates are valid. However, the forward-looking statements in this news release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including without limitation: the Company will not be able to use the proceeds of the Rights Offering as anticipated, the results of exploration and development activities will not be consistent with management’s expectations, the risk of unexpected variations in mineral resources, grade or recovery rates, delays in obtaining or inability to obtain required government or other regulatory approvals or financing, failure of plant, equipment or processes to operate as anticipated, the risk of accidents, labor disputes, inclement or hazardous weather conditions, unusual or unexpected geological conditions, ground control problems, earthquakes, flooding and all of the other risks generally associated with the development of mining facilities and the operation of a producing mine. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES

TORONTO, Dec. 22, 2020 (GLOBE NEWSWIRE) — Olivut Resources Ltd. (“Olivut” or the “Company”) (TSXV:OLV) is pleased to announce that the Company has closed a non-brokered private placement (the “Private Placement”) comprised of 5,000,000 common shares (the “Common Shares”) for proceeds of $400,000 at a price of $0.08 per Common Share. The Common Shares are subject to resale restrictions pursuant to applicable securities laws requirements and will not be freely tradable until four months after the date of issue.

One insider participated in the Private Placement, thereby making the Private Placement a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). Mr. Pierre Lassonde, as insider of the Company, purchased 1,250,000 Common Shares and owns or controls 8,097,000 common shares or approximately 12.9% of the total common shares issued and outstanding after the completion of the Private Placement. The Private Placement was unanimously approved by the directors of the Company. The Company is relying on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 because the fair market value of the issuance to Mr. Lassonde is less than 25% of the market capitalization of the Company.

Olivut will use the proceeds of the Private Placement for exploration and general corporate purposes.

The TSX Venture Exchange approved for listing the Common Shares issued under the Private Placement on December 22, 2020.

Olivut is a diamond exploration company with a 100% mineral interest in the HOAM Project (the “HOAM Project”) and a 50% interest in the Seahorse Project (the Seahorse project”), both projects being located in Canada’s Northwest Territories.

Numerous targets are drill ready on the HOAM Project and a detailed helimag program is proposed for additional regional geophysical anomalies. It is anticipated that many additional new targets will be added to the current list of priority drill targets. Completion of this work program is contingent on the raising of funds and the effects of the current Coronavirus pandemic particularly on planning and work in the Northwest Territories.

The Company considers the Seahorse Project to have the potential to host diamondiferous kimberlite bodies of significant size and perhaps other mineral deposits, based on a combination of: 2019 drill program results; favourable diamond stability indicator minerals found regionally and locally, including 18 macro diamonds found in regional samples to the west and northwest; specific geophysical targets; regional and local faults that would favour kimberlite emplacement; occurrence of diamondiferous kimberlites to the north and southeast, as well as other geochemical data in the area.

The Coronavirus pandemic and its effects particularly on planning and work in the Northwest Territories prevented any field work being conducted in 2020.

Please visit www.olivut.com for detailed corporate and project information.

This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States. The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

This press release contains forward-looking statements with respect to the Company, and matters concerning the raising of additional capital, the business, operations, strategy, and financial performance of the Company. Actual results may differ materially from those indicated by such statements. These statements generally, but not always, can be identified by use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe" or "continue" or the negative thereof or similar variations. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the estimates and projections regarding the Company’s properties are realized. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Unless otherwise stated, all forward looking statements speak only as of the date of this press release and the Company does not undertake any obligation to update such statements except as required by law.

Martin St. Pierre, P.Geophys., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical disclosure in this press release.

Leni Keough, P.Geo.
President and Chief Executive Officer

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CONTACT: For further information, please contact: Leni Keough President and Chief Executive Officer Olivut Resources Ltd. (780) 866-2226

Whilst it may not be a huge deal, we thought it was good to see that the Syrah Resources Limited (ASX:SYR) Non-Executive Chairman, James Askew, recently bought AU$109k worth of stock, for AU$0.91 per share. Even though that isn't a massive buy, it did increase their holding by 72%, which is arguably a good sign.

Check out our latest analysis for Syrah Resources

The Last 12 Months Of Insider Transactions At Syrah Resources

In fact, the recent purchase by James Askew was the biggest purchase of Syrah Resources shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of AU$0.89. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. James Askew was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Syrah Resources Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Syrah Resources insiders own 8.5% of the company, worth about AU$37m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Syrah Resources Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Syrah Resources insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Syrah Resources you should be aware of, and 1 of these shouldn't be ignored.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR ‎DISSEMINATION IN THE UNITED STATES

CALGARY, AB / ACCESSWIRE / December 14, 2020 / New Stratus Energy Inc. (TSXV:NSE)(OTC PINK:RDRIF) ("New Stratus" or the "Corporation") is pleased to announce that it has completed a non-brokered private placement of ‎‎3,275,000‎ ‎units ("Units") at a price of $0.40 per Unit for gross proceeds of $‎‎1,310,000 (the "Offering"). Each Unit issued pursuant to the Offering is comprised of one common share of the Corporation ("Common Share") and one-half of one common share purchase warrant ("Warrant"), with each whole Warrant entitling the holder to acquire one Common Share at a price of $0.55 per Common Share until December 14, 2022.

The net proceeds from the Offering will be used by the Corporation for exploration activities in its block VMM-18, the evaluation of other opportunities, and general corporate purposes. Completion of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including final acceptance of the TSX Venture Exchange.

All securities issued in connection with the Offering are subject to a four-month hold period, which expires on April 15, 2021. Following the completion of the Offering, the Corporation has ‎61,090,445 ‎Common Shares issued and outstanding.

Contact Information:

Jose Francisco Arata
Chief Executive Officer
jfarata@newstratus.energy ‎

Mario A. Miranda
Chief Financial Officer
mmiranda@newstarus.energy / ‎(416) 363-4900

Forward-Looking Information and Reader Advisory

Certain information set out in this news release constitutes forward-looking information, including information relating to the Offering and the use of process therefrom. Forward-looking statements (often, but not always, identified by the use of words such as ‎‎"expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not ‎statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the ‎opinions, expectations and estimates of management of the Corporation as at the date the statements are made and are subject to a ‎variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially ‎from those anticipated or implied by such forward-looking statements. In light of the risks and uncertainties associated with forward-looking statements, readers are ‎cautioned not to place undue reliance upon forward-looking information. Although the Corporation believes that the expectations ‎reflected in the forward-looking statements set out in this news release, it can give ‎no assurance that such expectations will prove to have been correct. The forward-looking statements of the Corporation contained in this ‎news release are expressly qualified, in their entirety, by this cautionary statement.‎

This news release is not an offer of securities for sale in the United States. Securities may not be offered ‎or sold in the United States or to or for the account or benefit of U.S. persons (as such terms are ‎defined in Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities ‎Act")), absent registration or an exemption from registration. The securities offered have not been and ‎will not be registered under the U.S. Securities Act or any state securities laws and, therefore, may not ‎be offered for sale in the United States, except in transactions exempt from registration under the U.S. ‎Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell ‎or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which ‎such offer, solicitation or sale would be unlawful.‎

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: New Stratus Energy Inc.

View source version on accesswire.com:
https://www.accesswire.com/620898/New-Stratus-Energy-Announces-Closing-of-Non-Brokered-Private-Placement

Toronto, Ontario–(Newsfile Corp. – December 15, 2020) – Jubilee Gold Exploration Ltd. (TSXV: JUB) (the "Company") announces that, further to its new release dated December 8^th, 2020 regarding the Company's adjourned annual general and special meeting of shareholders (the "Meeting"), the Meeting will be reconvened on December 23^rd, 2020 at 9:30 A.M. (Toronto time), as a virtual meeting.

The Meeting was initially scheduled for December 11^th, 2020 at 10:00 A.M. where the Company was seeking shareholder approval to implement a consolidation of its outstanding common shares (the "Consolidation"). The Company however did not receive the necessary level of votes as set out in the Management Information Circular to support the Consolidation. As such, the Company will not be seeking shareholder approval for the Consolidation and will provide an update should they again attempt the Consolidation.

The Meeting will still include voting on the following standard matters: the approval of minutes of last annual meeting; election of directors; and the appointment of auditors.

The call-in number for the Meeting is: 416-849-4286; access #0091269.

For further information contact:

Name: Warren Becker
Office: 416-436-4348

This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/70335

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. But while history lauds those rare successes, those that fail are often forgotten; who remembers Pets.com?

So should Liberty One Lithium (CVE:LBY) shareholders be worried about its cash burn? In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. We'll start by comparing its cash burn with its cash reserves in order to calculate its cash runway.

View our latest analysis for Liberty One Lithium

When Might Liberty One Lithium Run Out Of Money?

A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. As at September 2020, Liberty One Lithium had cash of CA$6.2m and no debt. Looking at the last year, the company burnt through CA$1.3m. So it had a cash runway of about 4.9 years from September 2020. There's no doubt that this is a reassuringly long runway. The image below shows how its cash balance has been changing over the last few years.

How Is Liberty One Lithium's Cash Burn Changing Over Time?

Because Liberty One Lithium isn't currently generating revenue, we consider it an early-stage business. So while we can't look to sales to understand growth, we can look at how the cash burn is changing to understand how expenditure is trending over time. While it hardly paints a picture of imminent growth, the fact that it has reduced its cash burn by 29% over the last year suggests some degree of prudence. Admittedly, we're a bit cautious of Liberty One Lithium due to its lack of significant operating revenues. So we'd generally prefer stocks from this list of stocks that have analysts forecasting growth.

Can Liberty One Lithium Raise More Cash Easily?

While Liberty One Lithium is showing a solid reduction in its cash burn, it's still worth considering how easily it could raise more cash, even just to fuel faster growth. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Commonly, a business will sell new shares in itself to raise cash and drive growth. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn.

Liberty One Lithium has a market capitalisation of CA$43m and burnt through CA$1.3m last year, which is 2.9% of the company's market value. That means it could easily issue a few shares to fund more growth, and might well be in a position to borrow cheaply.

Is Liberty One Lithium's Cash Burn A Worry?

It may already be apparent to you that we're relatively comfortable with the way Liberty One Lithium is burning through its cash. For example, we think its cash runway suggests that the company is on a good path. And even though its cash burn reduction wasn't quite as impressive, it was still a positive. After taking into account the various metrics mentioned in this report, we're pretty comfortable with how the company is spending its cash, as it seems on track to meet its needs over the medium term. On another note, we conducted an in-depth investigation of the company, and identified 3 warning signs for Liberty One Lithium (2 are a bit unpleasant!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies insiders are buying, and this list of stocks growth stocks (according to analyst forecasts)

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell DevEx Resources Limited (ASX:DEV), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for DevEx Resources

The Last 12 Months Of Insider Transactions At DevEx Resources

The Non-Executive Chairman Timothy Rupert Goyder made the biggest insider purchase in the last 12 months. That single transaction was for AU$1.6m worth of shares at a price of AU$0.05 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.23. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 36.27m shares worth AU$1.9m. But they sold 31.41m shares for AU$1.6m. Overall, DevEx Resources insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

DevEx Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does DevEx Resources Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that DevEx Resources insiders own 26% of the company, worth about AU$16m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The DevEx Resources Insider Transactions Indicate?

There haven't been any insider transactions in the last three months — that doesn't mean much. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think DevEx Resources insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DevEx Resources. When we did our research, we found 4 warning signs for DevEx Resources (1 shouldn't be ignored!) that we believe deserve your full attention.

Of course DevEx Resources may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

Vancouver, British Columbia–(Newsfile Corp. – December 11, 2020) – Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") today announced the offering to its shareholders (the "Rights Offering") of rights (the "Rights") to acquire common shares of the Company ("Common Shares") at the close of business on the record date of December 18, 2020 ("Record Date"), on the basis of one Right for each Common Share held. Each Right will entitle the holder to subscribe for one Common Share of the Company upon payment of the subscription price of $0.32 or ZAR 3.77136 (based on the Applicable Exchange Rate as defined in the Rights Offering Circular) per Common Share (the "Basic Subscription Privilege"). Shareholders who fully exercise their Rights under the Basic Subscription Privilege will also be entitled to subscribe for additional Common Shares, on a pro rata basis, if available as a result of unexercised Rights prior to the expiry time of the Rights Offering (the "Additional Subscription Privilege").

The Rights will be listed and posted for trading on the Toronto Stock Exchange (the "TSX") under the symbol "ELR.RT" on a "when issued" basis, and the Johannesburg Stock Exchange (the "JSE") under the symbol "EPSN" at 09:00 SAST on December 15, 2020. The Rights Offering will close at 12:00 pm in South Africa and 2:00 p.m. (Vancouver time)/5:00 p.m. (Toronto time) (the "Expiry Time") on January 22, 2021, after which time unexercised Rights will be void and of no value.

The Rights will be issued only to shareholders on the Record Date (the "Eligible Holders") who are resident in a province or territory of Canada or in South Africa (the "Eligible Jurisdictions"). Shareholders will be presumed to be resident in the place shown on the corporate share registry or securities register (as the case may be), unless the contrary is shown to the Company's satisfaction. Neither the Offering Notice (defined below), nor the Rights Offering Circular (defined below) is to be construed as an offering of the Rights, and the Common Shares issuable upon exercise of the Rights are not offered for sale in any jurisdiction outside of the Eligible Jurisdictions, including in the United States (the "Ineligible Jurisdictions"), or to any shareholders who are resident in any jurisdiction other than the Eligible Jurisdictions (the "Ineligible Holders"). Details of the Rights Offering will be set out in the rights offering notice ("Notice of Rights Offering") and rights offering circular ("Rights Offering Circular") which will be available from today under the Company's profile at www.sedar.com and on the Company's website www.eastplats.com/investors-2/Rights Offering.

The Company currently has 100,639,032 Common Shares issued. If all Rights issued under the Rights Offering are validly exercised, an additional 100,639,032 Common Shares will be issued. The Company is pleased to provide all the existing shareholders of Eastplats an opportunity to directly fund the capital investment required to take advantage of the proposed opportunities. The Company intends to use the net proceeds of the Rights Offering, subject to the results of the amount raised, on capital projects (focused on platinum group metals ("PGM") opportunities) expected to be completed during 2021 and, if sufficient funds are raised, on secondary projects, which are expected to begin in 2021 but which are not expected to be completed until the following year. The Company forecasts it has sufficient working capital to continue with its current operations in 2021, subject to the Retreatment Project option and loan assessment occurring in 2022.

The Company expects to use the net proceed from the Rights Offering to commence and/or complete, subject to the net proceeds from the Rights Offering, the following:

• Upgrades and repairs to the Zandfontein underground shaft and the rock winder to ensure they are available for PGM operations;

• Purchase and install filter press and additional standby pumps for the PGM circuit D operations, which are intended to stabilize and enhance the PGM recovery and sales from circuit D;

• Refurbishment of the existing main PGM facility (circuit 1) to increase the capacity and recovery opportunity of PGM recovery and sales;

• Mareesburg project environmental work following the completion of the environmental impact assessment ("EIA");

• Prospecting and assessment work in relation to Zandfontein, Crocette and Spitzkop ore bodies;

• Feasibility and assessment work in regards to a vertical furnace and pelletizer of Chrome concentrate;

• Refurbishment of the existing main PGM facility (circuit 2) to further increase the capacity and recovery opportunity of PGM recovery and sales;

• Crocodile River Mine underground assessment including all chrome recovery activities in relation to the Retreatment Project;

• Zandfontein underground start-up investment;

• Mareesburg Project start-up, infrastructure and build out, subject to environmental and economic confirmation;

• Additional feasibility and EIA work on the various mining rights; and

• Capital requirements for care and maintenance, working capital and general and administrative costs.

Shareholders Holding Common Shares Listed on the TSX

The Notice of Rights Offering and accompanying rights certificate will be mailed to each shareholder of the Company resident in the provinces and territories of Canada as at the Record Date. Registered shareholders who wish to exercise their Rights must forward the completed rights certificate, together with the applicable funds, to the rights agent, Computershare Investor Services Inc., on or before the Expiry Time. Shareholders who own their Common Shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary.

Each Ineligible Holder will be sent a letter (the "Notice to Ineligible Shareholders") describing how Ineligible Holders may, in the Company's discretion, participate in the Rights Offering, provided such Ineligible Holder satisfies the Company that, among other things, the distribution to, and exercise by such Ineligible Holder of the Rights in the Rights Offering: (i) is not unlawful; and (ii) is exempt from any prospectus or similar filing requirement under the laws applicable to such Ineligible Holder or the laws of such Ineligible Holder's place of residence and does not require obtaining any approvals of a regulatory authority in such Ineligible Holder's place of residence. The Notice to Ineligible Shareholders will have attached a form of exempt purchaser status certificate to this effect (the "Exempt Purchaser Status Certificate").

Brokers cannot exercise the Rights on behalf of beneficial Ineligible Holders of Common Shares, unless the Ineligible Holder has completed an Exempt Purchaser Status Certificate and has provided same to the Company through the applicable broker.

Shareholders Holdings Common Shares Listed on the JSE

Eligible Holders of certificated Common Shares will be sent a form of instruction in respect of their letters of allocation. Eligible Holders of certificated Common Shares who exercise their Rights must complete the form of instruction in accordance with the instructions contained therein and lodge it, together with the amount due in ZAR with the Link Market Services South Africa Proprietary Limited ("JSE Transfer Secretaries") on or before the Expiry Time.

Eligible Holders of dematerialized Common Shares who wish to exercise their Rights must notify their CSDP or broker of their acceptance of the Offering in the manner and time stipulated in their custody agreement with their CSDP or broker.

Ineligible Holders of certificated Common Shares will be sent a letter advising them that their letters of allocation will be issued to, and held on their behalf by, the JSE Transfer Secretaries and they will be sent an Exempt Purchaser Status Certificate. The Exempt Purchaser Status Certificate will set out the conditions required to be met, and procedures that must be followed, in order for such Ineligible Holders to participate in the Offering.

CSDPs or Brokers cannot follow the Rights in respect of Ineligible Holders of dematerialized Common Shares, unless the Ineligible Holder has completed an Exempt Purchaser Status Certificate and has provided same to the JSE Transfer Secretaries on or prior to January 13, 2021 (Ineligible Holders must confirm the provision of the Exempt Purchaser Status Certificate to their CSDP or Broker). After January 13, 2021, Ineligible Holders should instruct their CSDPs or Brokers to attempt to sell their Rights for the account of such holders and to deliver any proceeds of sale to such holders or allow their Rights to lapse.

The form of Exempt Purchaser Status Certificate has been sent to Ineligible Holders (or their CSDP or Broker) and will be available from the JSE Transfer Secretaries upon request, who can be contacted at +27 (0) 861 472 644 (local) or +27 11 029 0112 (international)).

General

Neither the Rights being offered or the Common Shares issuable upon exercise of the Rights have been or will be registered under the United States Securities Act of 1933, as amended, and may not be exercised, offered or sold, as applicable, in the United States absent registration (which the Company has not sought) or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities of the Company. There shall be no offer or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification of such securities under the laws of any such jurisdiction. A copy of the Notice of Rights Offering, the Rights Offering Circular and the Notice to Ineligible Shareholders are available under the Company's profile on SEDAR at www.sedar.com and on the Company's website www.eastplats.com/investors-2/Rights Offering.

About Eastern Platinum Limited

Eastplats owns directly and indirectly a number of PGMs and chrome assets in the Republic of South Africa. All of the Company's properties are situated on the western and eastern limbs of the Bushveld Complex, the geological environment that hosts approximately 80% of the world's PGM-bearing ore.

Operations at the CRM currently include re-mining and processing its tailings resource, with an offtake of the chrome concentrate from the Barplats Zandfontein UG2 tailings facility ("Retreatment Project").

For further information, please contact:

EASTERN PLATINUM LIMITEDRowland Wallenius, Chief Financial Officerrwallenius@eastplats.com (email)(604) 800-8200 (phone)

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "will", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing the Company and other forward-looking statements are discussed in the Company's most recent Annual Information Form available under the Company's profile on www.sedar.com.

In particular, this press release contains forward-looking statements pertaining to the Company's ability to raise funds through the Rights Offering, its use of proceeds or future working capital requirements. These forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, unanticipated problems that may arise in the Company's production processes, commodity prices, lower than expected grades and quantities of resources, need for additional funding and availability of such additional funding on acceptable terms, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.

All forward-looking statements in this press release are expressly qualified in their entirety by this cautionary statement, the "Cautionary Statement on Forward-Looking Information" section contained in the Company's most recent Management's Discussion and Analysis available under the Company's profile on www.sedar.com. The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/70049