Sylvania Platinum (AIM: SLP)

Currency in GBP

Last close As at 30/03/2023

GBP0.88

−1.00 (−1.12%)

Market capitalisation

GBP248m

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.

PGM prices, especially platinum, iridium and ruthenium will likely benefit from their use in the future hydrogen economy in the medium term. We think PGM prices will rise in concert as battery materials shortages emerge in the second half of this decade as higher than generally expected ICE car sales push up PGM prices. Lower production from South AFrican PGM producers due to a lack of electricity, from Russia due to planned maintenance, offset by strong Chinese demand will support prices further.

Equity Analyst

Key Management

  • Jaco Prinsloo

    CEO

  • Lewanne Carminati

    CFO

Balance Sheet

Forecast net debt (US$m)

134.2

Forecast gearing ratio (%)

48

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (18.8) (14.1) (4.4)
Relative (14.2) (13.6) (2.2)
52 week high/low 112.4p/77.0p

Financials

Sylvania Platinum’s Q223 results did not reflect the strong Q1 due to a blend of price, cost and fx moves. We have lowered our near-term platinum group metal (PGM) price forecasts for palladium and rhodium due to recessionary fears resulting in lower car demand, but strengthening from FY26 as car sales recover to pre-pandemic levels. Our valuation of Sylvania’s producing assets of 186.9p/share takes into account our updated PGM price forecast, exchange rate moves and our estimate revisions to incorporate Q223 results, company production guidance and the end-December balance sheet.

Y/E Jun Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2021A 206.0 145.0 143.0 35.9 3.0 2.5
2022A 152.0 83.0 81.0 20.4 5.2 3.2
2023E 158.0 87.0 86.0 22.4 4.8 3.2
2024E 173.0 86.0 81.0 21.3 5.0 3.5

Research

TMT

ESG, moving beyond the box tick

Metals & Mining

The PGM markets – Outlook and price forecasts

Metals & Mining

Gold stars and black holes

Metals & Mining

Making a case for uranium: Life after Fukushima

Metals & Mining

Indaba special, 2014

Metals & Mining

Indaba special, 2013

Metals & Mining

Edison mining quarterly: October 2012

Metals & Mining

Mining catalyst: China’s new stimulus

Metals & Mining

Asia-Pacific resources quarterly: August edition

Metals & Mining

Asia-Pacific resources quarterly

Metals & Mining

Edison mining quarterly: April 2012

Metals & Mining

Macro Outlook – Price weakness on the cards

Metals & Mining

Indium and gallium overview

Metals & Mining

Switzerland: Global Resources Investing Conference