Sylvania Platinum

Sylvania Platinum

LN: SLP

Market Cap£232m

Last Close 87p

Sylvania Platinum focuses on the re-treatment and recovery of platinum group metals including platinum, palladium and rhodium.

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Investment summary

Sylvania Platinum is a low-risk platinum group metals (PGM) dump retreatment company with large cash flows that could soon equal the company’s current market capitalisation. Based in South Africa, country risk is limited due to the low labour complement. Sylvania’s Q222 report showed good cost control with the ZAR cost per oz down 5.5% on Q1 and direct operating costs down 1.4%. If sustained, FY22 costs will be 2% lower than our forecast, indicating operating margin upside.

Y/E Jun
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2020A 115.0 69.0 65.0 14.3 7.5 4.2
2021A 206.0 145.0 143.0 35.9 3.0 2.6
2022E 161.0 93.0 90.0 22.0 4.9 3.0
2023E 176.0 108.0 105.0 26.9 4.0 2.7
Industry outlook

A positive outlook is forecast for PGM prices. The outlook for platinum, iridium and ruthenium prices for the next two decades is good due to their use in the hydrogen economy. The outlook for rhodium and palladium is also good as increased loadings in gasoline autocats is scheduled in 2024 and thereafter. Large deficits in rhodium to 2028 and in palladium to 2030 due to increased autocat loadings should be balanced thereafter. For platinum we see a balanced market to 2025 but with deficits from 2028.

Last updated on 01/07/2022
Content on Sylvania Platinum
Sylvania Platinum – Forecasts unchanged and outlook improved
Metals & mining | research Update | 6 May 2022
doornbos 2
Sylvania Platinum – Some weakness but cash-flow rich
Metals & mining | research Update | 25 February 2022
doornbos 2
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Sector
Metals & mining
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Share price graph
Balance sheet
Forecast net debt (US$m) 135
Forecast gearing ratio (%) 50
Price performance
%
1m
3m
12m
Actual (2.5) (5.4) (27.5)
Relative* 3.1 0.8 (25.3)
52-week high/low 121.2p/84.0p
*% relative to local index
Key management
Jaco Prinsloo CEO
Lewanne Carminati CFO