Sylvania Platinum (AIM: SLP)

Currency in GBP

Last close As at 22/09/2023


−1.00 (−1.25%)

Market capitalisation


Sylvania Platinum focuses on the re-treatment and recovery of platinum group metals (PGMs) including platinum, palladium and rhodium, mainly from tailings dumps and other surface sources, but also lesser amounts of run-of-mine underground ore from Samancor chrome mines in South Africa.

Platinum group metals (PGM) prices, especially platinum and iridium, will benefit from their use in the future hydrogen economy. We think PGM prices will rise in concert as battery materials shortages emerge in the second half of this decade resulting in higher than generally expected internal combustion engine car sales. Lower production from South African PGM producers due to ore reserve depletion and in Russia due to equipment spares shortages and improving Chinese demand for PGMs and particularly chromite, will likely support prices in the longer term.

Latest Insights

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Metals & Mining | Update

Sylvania Platinum — Stellar production, guidance beaten

Metals & Mining | Update

Sylvania Platinum — New Thaba JV adds significant value

Metals & Mining | Flash note

Sylvania Platinum — Chrome ore and PGM treatment joint venture

Equity Analyst

Key Management

  • Jaco Prinsloo


  • Lewanne Carminati


Balance Sheet

Forecast net cash (US$m)


Forecast gearing ratio (%)


Share Price Performance

Price Performance
% 1M 3M 12M
Actual 16.2 (1.3) (18.6)
Relative 10.1 (2.6) (22.4)
52 week high/low 112.4p/64.8p


Sylvania Platinum reported excellent production results offset by weak PGM prices. The platinum group metal (PGM) basket price dropped 28% y-o-y because of recessions in Europe and economic turmoil in China. This has resulted in low demand for PGMs especially from China, which is the world’s biggest consumer of PGMs, and de-stocking by Western OEMs. However, Sylvania has been able to limit its FY23 EPS decline to 17.5% through increased production and has kept its dividend payout of 8p per share. Sylvania entered into a JV (Edison report of 29 August), which will see it process PGMs and chromite from chrome ores and will for the first time see Sylvania receiving a chromite concentrate revenue stream on its own account. The 8p/share dividend declared, a ~10% dividend yield, was in line with our forecast. Basic EPS at 17.01c/share was ~6% lower than our forecast. The stock is inexpensive relative to our valuation, especially because of its low risk, in our view, in terms of safety, lower execution risks, labour component and its overall low-cost operating model relative to its peers. Entry into the chromite market could add significant upside if current historically high prices continue.

Y/E Jun Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2022A 152.0 83.0 81.0 20.4 4.9 3.0
2023A 130.0 66.0 67.0 16.7 6.0 3.4
2024E 114.0 37.0 39.0 10.7 9.4 8.3
2025E 137.0 50.0 49.0 12.8 7.8 5.9



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