Sylvania Platinum (AIM: SLP)

Last close As at 17/07/2024

GBP0.65

−1.00 (−1.52%)

Market capitalisation

GBP173m

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.

Demand for PGMs dropped in 2023 and remains under pressure due to increased recycling of PGMs, particularly in China. Demand is likely to be muted in 2024, with inventories remaining high. In the longer term, we see significant headwinds for electric vehicles in most countries except China, and increased regulatory and emissions legislation pressure, driving increased PGM demand and positive price momentum. Production pressures in South Africa and Russia could provide a further underpin to prices.

Latest Insights

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Metals & Mining | Update

Sylvania Platinum — Annual guidance maintained, despite strike

Metals & Mining | Update

Sylvania Platinum — Sluggish PGM prices affect forecasts

Metals & Mining | Update

Sylvania Platinum — Q124 production up, costs down

Metals & Mining | Update

Sylvania Platinum — Stellar production, guidance beaten

Equity Analyst

Lord Ashbourne

Lord Ashbourne

Director of Content, Mining

Key Management

  • Jaco Prinsloo

    CEO

  • Lewanne Carminati

    CFO

Balance Sheet

Forecast net cash (US$m)

92.9

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 4.2 0.0 (10.3)
Relative 3.0 (4.8) (19.4)
52 week high/low 85.5p/50.4p

Financials

Sylvania Platinum maintained annual production guidance in Q324 despite being affected by a strike. While pressure on the PGM basket price remains the overarching issue for the company (and the industry as a whole), its strong cash balance of US$101.3m and upside potential from the Thaba joint venture, as well as its exploration assets steadily moving towards production, are very attractive features. Our value of 120p/share includes 16.7p/share for the new Thaba joint venture, which will augment PGM production and add a chromite concentrate revenue stream, while our value for exploration assets remains flat at book value of 13.8p per share.

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 4.0 2.4
2023A 130.0 66.0 67.0 16.7 4.9 2.8
2024E 89.0 22.0 25.0 7.2 11.4 9.3
2025E 110.0 37.0 36.0 9.3 8.8 6.7

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