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 continues 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 |
edison tv

14.11.24

Sylvania Platinum – executive interview

Metals & Mining |
Update

04.11.24

Sylvania Platinum — Healthy production recovery

Metals & Mining |
Update

25.09.24

Sylvania Platinum — Earnings upside with chrome JV kicker in Q425

Metals & Mining |
Update

14.08.24

Sylvania Platinum — Long-term PGM price upside

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 cash (US$m)

62.3

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(1.0)	(15.1)	(31.1)
Relative	2.2	(12.3)	(36.4)
52 week high/low	77.0p/43.4p

Financials

Sylvania Platinum’s FY24 results faced pressure from weak PGM prices, delayed production recovery and elevated expenses. The company is keenly focused on improving efficiencies, successfully rolling out the Thaba joint venture (JV) and completing exploration asset studies. We expect a strong pick-up in FY26 revenue from the JV, supported by cost control. Our valuation of 105.8p/share was affected by a strong rand, but offers upside from the JV, exploration assets and a recovery of PGM prices.

Y/E Jun	Revenue (US$m)	EBITDA (US$m)	PBT (US$m)	EPS (fd) (c)	P/E (x)	P/CF (x)
2023A	130.0	66.0	67.0	16.7	3.8	2.2
2024A	82.0	12.0	13.0	2.7	23.3	11.0
2025E	104.0	20.0	18.0	5.1	12.4	10.3
2026E	141.0	46.0	39.0	10.7	5.9	4.0

Research

Flash note

Metals & Mining

11.08.23

Sylvania Platinum — Chrome ore and PGM treatment joint venture

Update

Metals & Mining

03.08.23

Sylvania Platinum — Lower rhodium prices overshadow strong production

Metals & Mining

Update

Sylvania Platinum — New Thaba JV adds significant value

Update

Metals & Mining

04.05.23

Sylvania Platinum — Lower PGM prices affecting results and forecasts

Outlook

Metals & Mining

14.02.23

Sylvania Platinum — Well set for robust long-term PGM prices

Update

Metals & Mining

08.11.22

Sylvania Platinum — Massive rhodium gearing to exploration assets

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

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

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21.03.22

Decarbonisation – A potential opportunity for aluminium producers

thematic

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13.12.21

The PGM markets – Outlook and price forecasts

thematic

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16.05.19

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24.04.19

Piedmont Lithium increases its mineral resource estimate by 21%

thematic

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22.01.19

Gold stars and black holes

thematic

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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

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26.02.14

Making a case for uranium: Life after Fukushima

thematic

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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