Sylvania Platinum

Sylvania Platinum

LN: SLP

Market Cap£270.3m

Last Close 99p

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 cashflows that could soon equal the company’s current market capitalisation. PGM prices are in a correction phase due to a short-term worldwide computer chip shortage limiting the production of cars and PGM demand. Based in South Africa, country risk is limited due to the low labour complement. The stock price has outperformed its PGM peer group and should do so in future.

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 9.2 5.2
2021A 206.0 145.0 143.0 35.9 3.7 3.1
2022E 177.0 109.0 106.0 27.0 4.9 3.0
2023E 175.0 106.0 102.0 26.4 5.0 3.4
Industry outlook

A positive outlook is forecast for PGM prices except palladium, which will suffer from loss of market share of the gasoline driven vehicle to BEVs. The outlook for platinum, iridium and ruthenium over the next two decades is good due to their use in the hydrogen economy. The outlook for rhodium is good as increased loadings in gasoline autocats is scheduled in 2024. We see a balanced market for platinum to 2025 but deficits from 2028 onwards; in palladium we see growing surpluses and rhodium large deficits to 2028.

Last updated on 18/01/2022
Content on Sylvania Platinum
Sylvania Platinum – Massive free cash flows post-spike in PGM prices
Metals & mining | Initiation | 29 October 2021
doornbos 2
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Sector
Metals & mining
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Share price graph
Balance sheet
Forecast net cash (US$m) 151
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 13.1 (8.3) (11.6)
Relative* 9.6 (11.6) (21.2)
52-week high/low 143.0p/84.0p
*% relative to local index
Key management
Jaco Prinsloo CEO
Lewanne Carminati CFO