Eastern Platinum announced this week that it had received “unproven whistleblower allegations” of “undisclosed related party transactions pertaining to the sale of chrome concentrate at discounted prices”. If proven true, this would be tantamount to asset stripping. A special committee comprising two independent directors has been formed to investigate the allegations and, based on the findings, recommend what steps to take.
Read: Platinum surplus is ‘fragile’ amid supply risks, council warns Much of its financial difficulties seem to relate to concentrate offtake agreements with a company called Union Goal. Eastplats suspended shipments to Union Goal in the third quarter of 2022 due to non-payment and embarked on “contract free” sales. However, PwC says there is no assurance these sales will be sufficient to alleviate the liquidity crunch.