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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.
Metals & Mining
Metals & Mining
Jaco Prinsloo
CEO
Lewanne Carminati
CFO
Forecast net debt (US$m)
134.2
Forecast gearing ratio (%)
48
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | (18.8) | (14.1) | (4.4) |
| Relative | (14.2) | (13.6) | (2.2) |
| 52 week high/low | 112.4p/77.0p |
Sylvania Platinum’s Q223 results did not reflect the strong Q1 due to a blend of price, cost and fx moves. We have lowered our near-term platinum group metal (PGM) price forecasts for palladium and rhodium due to recessionary fears resulting in lower car demand, but strengthening from FY26 as car sales recover to pre-pandemic levels. Our valuation of Sylvania’s producing assets of 186.9p/share takes into account our updated PGM price forecast, exchange rate moves and our estimate revisions to incorporate Q223 results, company production guidance and the end-December balance sheet.
| Y/E Jun | Revenue (US$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 |
