Sylvania Platinum (Sylvania) delivered record FY26 4E PGM production of 95,885oz, up 18.4% from FY25 and ahead of both original and upgraded guidance, while chrome production of 50,317t met revised guidance. Record production combined with a strong PGM basket to more than double revenue to US$227.2m and lift normalised EPS to 30.5 US cents, ahead of our 28.3 US cents forecast. We have reset our PGM price forecasts for the Iran war retracement and, as a result, our FY27 EPS forecast falls by 57% to 28.0 US cents, dipping below FY26, as record production and the Thaba JV ramp-up partly offset lower prices. Our valuation is down 14% to 167.7p/share and, despite a conservative long-term production forecast, is almost 1.8x the current share price. Since FY13, Sylvania has increased its 4E PGM production per 1,000 shares in issue from 148oz to 369oz, which is an impressive performance. This achievement, as well as the company’s chrome and much higher rhodium, ruthenium and iridium exposure than its peers, has not been fully reflected in its trading levels in our opinion.

Sylvania Platinum reported record quarterly revenue of US$78.7m in Q326, with healthy 4E platinum group metals (PGMs) production (22,853oz, down 7% on the Q226 record), strong PGM prices and a growing chrome contribution. The company expects to achieve or exceed FY26 4E PGM production guidance, but lowered its chrome production guidance due to further weather-related and other challenges as the Thaba joint venture (JV) ramps up to full production. Q326 saw high cost growth, affected by dollar weakness and higher royalty tax. We have cut our FY26e EPS by 19.6% to 28.3 US cents, largely due to the US$12.3m impairment of exploration assets during H126. Our FY27 and FY28 EPS forecasts have been lifted by 1.5% and 2.5% respectively. Our valuation is unchanged at 195p per share.

Sylvania Platinum’s production in Q226 remained strong at 24,642oz for 4E platinum group metals (PGMs), slightly up on the previous record in Q126. PGM prices started rallying in December 2025, ahead of our expectations. Our new PGM forecasts are between 50% and 90% higher for FY26, driving earnings upgrades. We upgrade FY26 EPS by 52% to 35.2 US cents, FY27 EPS by 133% to 64.8 US cents and FY28 EPS by 143% to 69.0 US cents. Allowing for PGM prices to reverse from FY29 towards our long-term assumptions has resulted in a 24.8% increase in our valuation to 195p per share.