Sylvania Platinum - Edison Group

Overview
Price performance
Financials
Research
Thematics

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

26.02.24

Sylvania Platinum — Sluggish PGM prices affect forecasts

Metals & Mining |
Update

02.11.23

Sylvania Platinum — Q124 production up, costs down

Metals & Mining |
Update

14.09.23

Sylvania Platinum — Stellar production, guidance beaten

Metals & Mining |
Update

29.08.23

Sylvania Platinum — New Thaba JV adds significant value

Sector

Metals & Mining

Equity Analyst

Rene Hochreiter

Marius Strydom

Analyst

Lord Ashbourne

Director of Content, Mining

Key Management

Jaco Prinsloo

CEO
Lewanne Carminati

CFO

Balance Sheet

Forecast net debt (US$m)

92.9

Forecast gearing ratio (%)

36

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	9.3	9.3	(27.9)
Relative	7.5	2.7	(29.6)
52 week high/low	93.5p/50.4p

Financials

Sylvania Platinum’s H124 results suffered from a lower PGM basket price. Our new, more conservative PGM outlook, has resulted in downgrades to our forecasts and valuation. Our value of 118.1p per share includes 16.1p per share for the new Thaba joint venture, which will augment PGM production and add a chromite concentrate revenue stream. Our value for exploration assets (included above) has stayed flat at book value of 13.8p per share, although it offers upside as a recently released mineral resource estimate shows these assets steadily moving towards production. The cash position at end 2023 is strong at US$107.2m.

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	3.9	2.4
2023A	130.0	66.0	67.0	16.7	4.8	2.7
2024E	91.0	24.0	27.0	7.4	10.8	8.7
2025E	110.0	37.0	36.0	9.2	8.7	6.3

Research

edison tv

Metals & Mining

03.11.22

Sylvania Platinum – executive interview

Update

Metals & Mining

12.09.22

Sylvania Platinum — Low risk option on PGMs, stellar dividend payer

Metals & Mining

Update

Sylvania Platinum — Massive rhodium gearing to exploration assets

Update

Metals & Mining

02.08.22

Sylvania Platinum — Excellent Q4 production but lower PGM basket

Update

Metals & Mining

06.05.22

Sylvania Platinum — Forecasts unchanged and outlook improved

edison tv

Metals & Mining

03.03.22

Introduction to Sylvania Platinum, a unique and differentiated PGM producer

Update

Metals & Mining

25.02.22

Sylvania Platinum — Some weakness but cash-flow rich

Flash note

Metals & Mining

02.02.22

Sylvania Platinum — Great cost control

Initiation

Metals & Mining

29.10.21

Sylvania Platinum — Massive free cash flows post-spike in PGM prices

thematic

Consumer

05.10.22

IPO apocalypse

thematic

TMT

10.08.22

ESG, moving beyond the box tick

thematic

Metals & Mining

27.04.22

Five (more) things every investor should know about lithium and Lepidico

thematic

Metals & Mining

21.03.22

Decarbonisation – A potential opportunity for aluminium producers

thematic

Metals & Mining

13.12.21

The PGM markets – Outlook and price forecasts

thematic

Metals & Mining

16.05.19

Alliance Mineral Assets secures strategic investment from Galaxy and Jiangxi

thematic

Metals & Mining

24.04.19

Piedmont Lithium increases its mineral resource estimate by 21%

thematic

Metals & Mining

22.01.19

Gold stars and black holes

thematic

Metals & Mining

06.02.15

Mining sector report: Gold: The value of gold and other metals

thematic

Energy & Resources

04.03.14

ASX Spotlight Conference – London, 6 March 2014

thematic

Metals & Mining

26.02.14

Making a case for uranium: Life after Fukushima

thematic

Metals & Mining

28.01.14

Indaba special, 2014

thematic

Energy & Resources

01.03.13

ASX Small to Mid Caps Conference – London, 7 March 2013

thematic

Energy & Resources

28.02.13

Asia-Pacific resources quarterly: February 2013 edition

thematic

Metals & Mining

01.02.13

Indaba special, 2013

thematic

Metals & Mining

02.10.12

Edison mining quarterly: October 2012

thematic

Metals & Mining

14.09.12

Mining catalyst: China’s new stimulus

thematic

Energy & Resources

20.08.12

Asia-Pacific resources quarterly: August edition

thematic

Energy & Resources

10.05.12

Asia-Pacific resources quarterly

thematic

Metals & Mining

25.04.12

Edison mining quarterly: April 2012

thematic

Metals & Mining

16.12.11

Macro Outlook – Price weakness on the cards

thematic

Metals & Mining

07.10.11

Indium and gallium overview

thematic

Metals & Mining

13.06.11

Switzerland: Global Resources Investing Conference