Sylvania Platinum — Forecasts unchanged and outlook improved

Sylvania Platinum (AIM: SLP)

Last close As at 04/11/2024

GBP0.48

1.50 (3.26%)

Market capitalisation

GBP125m

More on this equity

Research: Metals & Mining

Sylvania Platinum — Forecasts unchanged and outlook improved

Sylvania’s end March 2022 cash balance improved by 25.5% to US$138m and Q322 revenue increased by 17% as a result of higher platinum group metal (PGM) prices. Production improvement was slower than expected, which put pressure on unit costs over the quarter. Most of the operational issues of Q322 have now been or are almost resolved, with the company expecting a ‘significant increase’ in production in the fourth quarter. The Lesedi plant is back in full production and the Mooinooi plant’s run-of-mine (ROM) grades have improved post Q3. In light of the lower Q322 production versus Q222, we have nudged down our FY22 production estimate to 66,182oz, at the lower end of management’s unchanged guidance of 66,000–68,000oz. We expect unit costs to be flat in Q422 as ounce production is forecast to increase versus Q322. Overall, our modestly lower FY22 revenue forecast, combined with unchanged total cost forecasts, results in a 7.5% reduction in our EPS forecast to 22.6c. Our FY23 forecasts remain unchanged, with upside risk to PGM prices from supply constraints.

Metals & Mining

Sylvania Platinum

Forecasts unchanged and outlook improved

Q322 results

Metals & mining

6 May 2022

Price

94p

Market cap

£256m

US$1.36/£

Net cash (US$m) at 31 December 2021

110.1

Shares in issue

272.5m

Free float

97.7%

Code

SLP

Primary exchange

AIM

Secondary exchange

NA

Share price performance

%

1m

3m

12m

Abs

0.0

0.0

(30.5)

Rel (local)

2.3

1.5

(32.8)

52-week high/low

143p

84p

Business description

Sylvania Platinum focuses on the re-treatment and recovery of platinum group metals 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.

Next events

FY22 annual results

5 September 2022

Analysts

René Hochreiter

+44 (0)20 3077 5700

Lord Ashbourne
(formerly Charles Gibson)

+44 (0)20 3077 5700

Sylvania Platinum is a research client of Edison Investment Research Limited

Sylvania’s end March 2022 cash balance improved by 25.5% to US$138m and Q322 revenue increased by 17% as a result of higher platinum group metal (PGM) prices. Production improvement was slower than expected, which put pressure on unit costs over the quarter. Most of the operational issues of Q322 have now been or are almost resolved, with the company expecting a ‘significant increase’ in production in the fourth quarter. The Lesedi plant is back in full production and the Mooinooi plant’s run-of-mine (ROM) grades have improved post Q3. In light of the lower Q322 production versus Q222, we have nudged down our FY22 production estimate to 66,182oz, at the lower end of management’s unchanged guidance of 66,000–68,000oz. We expect unit costs to be flat in Q422 as ounce production is forecast to increase versus Q322. Overall, our modestly lower FY22 revenue forecast, combined with unchanged total cost forecasts, results in a 7.5% reduction in our EPS forecast to 22.6c. Our FY23 forecasts remain unchanged, with upside risk to PGM prices from supply constraints.

Year end

Revenue (US$m)

PBT*
(US$m)

EPS*
(c)

DPS**
(p)

P/E
(c)

Yield
(%)

06/20

115

65

14.6

1.6

8.3

1.8

06/21

206

143

36.7

7.8

3.3

8.7

06/22e

161

90

22.6

6.2

5.4

6.9

06/23e

176

105

26.9

4.9

4.5

5.4

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **Includes declared windfall dividend of 3.75p for FY20 paid in April 2021 and a windfall 2.25p for FY21 paid in April 2022. Windfall dividends are not forecast.

Cost pressures to abate as production normalises

Sylvania’s group cash cost per four-element (4E) PGM ounce increased 13% in Q322 compared to Q222. These unit cost increases were due to increased reagent costs, fuel and transport costs and lower production of 4E PGMs. We forecast unit cost pressures to flatten somewhat with the return to normal production levels from Q422 onwards. However, high inflation rates are prevalent throughout the South African mining industry, which may mean further cost increases are likely in the future.

Medium- and long-term outlook remains intact

Our PGM basket prices remain strong and unchanged from our previous forecasts, buoyed by concerns of PGM supply from Russia following its invasion of Ukraine (see our report on PGMs published in December 2021). High oil prices, another consequence of the invasion, could have a strong effect on the weakening of the South African rand versus the US dollar (as South Africa imports all its fuel) and could have the knock-on effect of reduced US dollar unit costs particularly in Q422 as the rand has fallen by 13% since the Ukraine war started. We have adjusted our rhodium and iridium prices slightly upwards for Q422.

Valuation: 163p/share plus 12p from exploration

Our valuation for Sylvania is unchanged at 163p/share for the producing Sylvania Dump Operations (SDOs). Our price outlook remains unchanged, but the risk is to the upside of the valuation. Exploration assets are valued at 12p/share.

Q322 results and updated forecasts

Sylvania’s Q322 (to end March 2022) results saw net revenue strongly up by 24% vs Q222 to US$47.9m and its end March cash balance up 25% to US$138m reflecting strong PGM basket prices. Despite cost pressures, which saw most unit cost categories up between 9% and 18% quarter-on-quarter, there was a significant increase in net profit of 36% to US$21.2m. Most of the operational issues of Q322 have been or are almost rectified and the company is expecting a significant increase in production in the fourth quarter as the Lesedi plant is back in full production and taking into account the improvement in the Mooinooi plant’s ROM grades identified post Q3.

After production in Q322 of 15,840oz 4E (48,216oz 4E for the nine months to end Q322) and with unchanged guidance of 66,000–68,000oz for FY22, we now estimate production of 17,966oz for Q422 or 66,182oz for the year to end June 2022 (previously 68,088oz). This would be the highest quarterly production rate in the year, but with most of the operations now firing on all cylinders, this is, in our view, likely to be achieved. Our slightly lower production estimate drives a reduction in our estimated revenue from US$167.2m to US$160.6m, as shown in Exhibit 1.

We have reduced our unit production cost estimates for Q422 because of the increased production in this quarter. Year on year, however, we estimate cash costs to be around 9.7% higher versus FY21 in US dollar terms, and 15% higher in South African rand terms. This is because of our FY22 production rate which, at 66,182oz. is still below last year’s production rate of 70,043oz, and because the prices of chemicals used in the recovery process (reagents) and the price of diesel fuel and transportation have risen by double-digit percentage figures. This inflationary trend is prevalent in the South African mining industry, and globally, with supply chain constraints and oil price increases occurring worldwide.

Our updated forecasts for FY22 compared to our previous FY22 numbers are shown in Exhibit 1. The production, revenue and cost assumptions mentioned above lead to a reduction in our net profit forecast, from US$66.8m to US$61.8m, and our EPS, by 7.5% to 22.6c.

Our forecasts for FY23 and FY24 remain unchanged with production issues expected to be fully resolved and our PGM forecasts intact, albeit offering upside risk from the war in the Ukraine.

Exhibit 1: H1and Q3 results (to 30 December and March 2021) and forecast changes

US$m

H121

FY21

H122

Change on H121 %

H222e

FY22e previous

FY22e updated

% change

Q322

9M22

FY23e

FY24e

Revenue

85.2

206.1

69.1

(19.0)

96.8

167.2

160.6

(3.9)

47.9

115.6

176.4

174.0

Cost of sales

24.7

54.8

29.2

18.2

30.1

59.4

59.3

(0.1)

 

 

61.6

63.3

Costs (ZAR)

400.8

840.2

438.9

9.5

460.2

915.5

911.7

(0.4)

 

 

979.5

1,005.3

Gross Profit

57.6

143.1

36.8

(36.1)

61.7

100.5

93.3

(7.2)

 

 

106.0

102.1

Profit before tax

57.4

143.2

34.9

(39.2)

60.9

97.8

90.5

(7.5)

 

 

105.0

101.4

EBITDA

58.0

144.9

36.2

(37.7)

61.9

101.1

93.6

(7.4)

30.0

65.9

108.0

105.0

Net Profit

40.5

99.8

24.4

(39.9)

42.5

66.8

61.8

(7.5)

 

 

73.3

70.2

Basic EPS (US cents)

14.9

36.7

8.9

(40.1)

15.6

24.5

22.6

(7.5)

 

 

26.9

25.7

Dividend (p)

-

4.0

-

-

3.9

4.3

3.9

(7.5)

 

 

4.9

6.3

Windfall dividend (p)

3.75*

(40.0)

-

2.25**

-

 

 

3.9

6.0

Production (4Eoz)

36,335

70,043

32,376

(10.9)

33,806

68,088

66,182

(2.8)

15,840

48,216

69,290

69,975

Cash cost ZAR/4E PGM oz

9,996

11,189

12,256

22.6

12,901

12,423

12,872

3.6

12,770

12,433

13,063

13,080

Cash cost US$/4E PGM oz

616

729

815

32.3

846

827

850

2.8

839

824

822

823

Basket price (US$/oz)

3,184

3,690

2,966

(6.8)

3,337

3,031

3,113

2.7

3,327

3,035

3,054

2,965

Cash balance

67.1

106.1

110.1

64.0

24.9

134.1

135.0

0.7

138.0

138.0

167.3

199.8

Source: Edison Investment Research. Note: *Paid in April 21 for FY20. **Paid in April 2022 for FY21.

Valuation unchanged at 163p/share and 175p/share with exploration assets

Our valuation of the SDOs remains unchanged, and we value the exploration assets at 12p/share, as valued in the company’s balance sheet as at end June 2021. Sylvania’s 74% share in the Grasvally Chrome mine is in the final stages of being sold. Work on the Volspruit project is continuing with the re-stating of the JORC compliant resource due in the fourth quarter. Further test work is being carried out on the recovery potential of the plant feed material. A preliminary economic assessment (PEA) is expected at end FY22. The drilling programme on the Northern Limb Projects has been completed, geological interpretation of the results is now in progress and the resource estimation is due to be completed in July 2022.

Operational issues

The operational issues of Q322 have largely been overcome. The new Lesedi Tailings dam (see Exhibit 2 for location) is in a safe and stable condition and commissioning of this facility will allow Lesedi to ramp up to full production during Q422. Its recently commissioned MF2 circuit should increase recoveries by around 10%, further improving the efficiency of the Lesedi plant. The Mooinooi plant’s problems regarding low-grade ore from the Samancor host mine have been addressed and preferred ore sources have been identified and are being processed. This should improve the ounce production from Mooinooi in the fourth quarter.

As previously mentioned, we have nudged back our ounce production forecasts to the bottom of the guidance range, reflecting the production challenges in FY22 so far, and taking into account Q322 production. However, we believe that FY23 could see an improved performance given that the FY22 challenges have been resolved and production could be very close to the 70,000oz 4E rate achieved in FY21 (Exhibit 1).

Exhibit 2: Location of Sylvania’s plants and projects on the Bushveld Igneous Complex in South Africa, the source of some 90% of the world’s resources of PGMs

Source: Sylvania Platinum

PGM market status: Rhodium price may exceed our forecasts in the longer term

We have increased our rhodium price assumption for Q422 from US$16,000/oz to US$17,500/oz for Q422 and a US$16,628/oz average for FY22 (Exhibit 3). The calendar year-to-date price for rhodium is US$18,210/oz. Rhodium represented around 60% of Sylvania’s revenue in FY21 and 40% in H122.

While the Ukraine invasion by Russia has resulted in upside risk to PGM prices, especially palladium, our base case in terms of PGM prices and their demand and supply remains unchanged (see our thematic report Invasion effect on PGMs.

Exhibit 3: PGM price forecasts (average annual prices to 2030)

Source: Edison Investment Research

Valuation

Sylvania is a tailings dump retreatment company that has planned steady production rates for the next 20 years (Exhibit 4). We use the following key drivers in our DDM₁₀ valuation (using a discount rate of 10% in real terms) to arrive at our SDO valuation of 163p/share.

Exhibit 4: Key inputs to our DDM₁₀ model

FY21

FY22

FY23

FY24

FY25

PGM plant feed (tonnes)

1,272,974

1,222,587

1,268,330

1,271,727

1,268,227

PGM plant feed grade (g/t)

3.2

3.2

3.0

3.1

3.1

PGM cash cost ZAR/4E PGMoz

11,257

12,872

13,096

13,048

13,336

PGM cash cost US$/4E PGMoz

734

850

824

821

839

Source: Edison Investment Research

Relative valuation

Sylvania offers good value relative to its peers. Our P/E ratios, based on our forecasts, are lower than those of consensus for its peers (Exhibit 5). Compared to peers, our forecast dividend yield for Sylvania is generally lower in FY22 but improving in FY23 and in the upper range of the peer dividend yields in FY24.

Exhibit 5: Peer comparison

Current market cap

P/E (x)

Dividend yield (%)

Ticker

(£bn)

2022e

2023e

2024e

2022e

2023e

2024e

Sylvania (Edison)

SLP-GB

0.3

3.9

3.3

3.5

6.9

5.4*

7.0*

Sylvania (consensus)

SLP-GB

0.3

4.3

3.8

4.1

4.8

4.7

5.7

Anglo Platinum

AMS-ZA

23.1

7.2

9.7

11.8

11.0

6.8

4.4

Implats

IMP-ZA

8.7

5.1

4.5

6.0

9.9

13.5

11.9

Sibanye

SSW-ZA

7.9

3.3

3.3

7.7

9.5

7.7

6.7

Northam

NPH-ZA

3.7

6.4

4.5

5.0

0.0

11.8

13.9

Royal Bafokeng Platinum

RBP-ZA

2.3

8.1

8.6

10.6

9.3

10.0

9.5

Jubilee

JLP-LON

0.4

10.4

5.7

3.9

0.0

0.0

0.0

Source: Edison Investment Research for Sylvania Platinum, consensus data from Refinitiv for all other countries. Note: *Does not include windfall dividend. Prices as at 4 May 2022.

Exhibit 6: Financial summary

US$m

2018

2019

2020

2021

2022e

2023e

2024e

Year ending 30 June

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

 

 

 

 

 

 

 

Revenue

63

71

115

206

161

176

174

Cost of Sales

(45)

(45)

(47)

(55)

(59)

(62)

(63)

Royalties Tax

0

0

(1)

(8)

(8)

(9)

(9)

Gross Profit

18

26

67

143

93

106

101

EBITDA

16

30

69

145

94

108

105

Operating Profit (before amort. and except.)

16

24

64

142

90

103

99

Intangible Amortisation

0

0

0

0

0

0

0

Exceptionals

0

0

(10)

0

0

0

0

Other

(2)

(9)

(9)

(5)

(7)

(7)

(8)

Operating Profit

16

24

54

142

90

103

99

Net Interest

1

1

2

1

1

2

2

Profit Before Tax (norm)

16

24

65

143

90

105

101

Profit Before Tax (FRS 3)

16

24

56

143

90

105

101

Tax

(5)

(6)

(15)

(43)

(29)

(32)

(31)

Profit After Tax (norm)

11

18

51

100

62

73

70

Profit After Tax (FRS 3)

11

18

41

100

62

73

70

Average Number of Shares Outstanding (m)

286

286

280

272

273

273

273

EPS - normalised (c)

3.8

6.4

14.6

36.7

22.6

26.9

25.7

EPS - normalised fully diluted (c)

3.8

6.2

14.3

35.9

22.0

26.9

25.7

EPS - (IFRS) (c)

3.8

6.2

14.3

35.9

22.0

26.9

25.7

Dividend per share (p)*

0.0

0.0

1.6

4.0

3.9

4.9

6.3

Gross Margin (%)

28%

36%

58%

69%

58%

60%

59%

EBITDA Margin (%)

25%

43%

60%

70%

58%

61%

60%

Operating Margin (before GW and except.) (%)

25%

34%

55%

69%

56%

59%

57%

BALANCE SHEET

 

 

 

 

 

 

 

Fixed Assets

95

93

74

86

95

105

105

Intangible Assets

57

53

43

45

48

48

48

Tangible Assets

37

38

30

40

47

57

56

Investments

1

2

0

0

1

1

1

Current Assets

41

59

89

188

205

239

270

Stocks

1

2

2

4

4

3

3

Debtors

25

8

12

69

56

58

57

Cash

14

22

56

106

135

167

200

Other

0

28

19

9

10

10

10

Current Liabilities

6

7

9

14

11

12

12

Creditors

6

7

9

14

11

12

12

Short term borrowings

0

0

0

0

0

0

0

Long Term Liabilities

18

18

13

16

17

20

21

Long term borrowings

18

18

13

16

17

20

21

Other long-term liabilities

0

0

0

0

0

0

0

Net Assets

112

128

141

244

268

312

342

CASH FLOW

 

 

 

 

 

 

 

Operating Cash Flow

18

25

71

114

99

107

106

Net Interest

1

1

2

2

1

2

2

Tax

(4)

(8)

(15)

(47)

(28)

(31)

(30)

Capex

(8)

(8)

(5)

(8)

(18)

(15)

(5)

Acquisitions/disposals

(6)

0

0

0

0

0

0

Financing

(3)

(1)

(18)

(4)

(5)

0

0

Dividends

0

(1)

(3)

(20)

(23)

(29)

(40)

Net Cash Flow

(0)

8

41

39

29

35

32

Opening net (debt)/cash

15

14

22

56

106

135

167

HP finance leases initiated

0

0

0

0

0

0

0

Other

(1)

(0)

(7)

12

0

(3)

0

Closing net (debt)/cash

14

22

56

106

135

167

200

Source: Company accounts, Edison Investment Research. Note: *Excludes windfall dividend.


General disclaimer and copyright

This report has been commissioned by Sylvania Platinum and prepared and issued by Edison, in consideration of a fee payable by Sylvania Platinum. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Sylvania Platinum and prepared and issued by Edison, in consideration of a fee payable by Sylvania Platinum. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

More on Sylvania Platinum

View All

Latest from the Metals & Mining sector

View All Metals & Mining content

Research: Industrials

Kendrion — Good start to the year despite many challenges

Kendrion’s revenue growth of 13% in Q1 was better than we expected, despite increased uncertainty in its markets. Industrial remains the star performer (revenues +28%), benefiting from the accelerating transition to clean energy and electrification. Automotive faced declining car production in Europe but managed to limit the revenue decline to 1%. The EBITDA margin was below last year’s level due to higher raw material prices and volatile demand. Kendrion’s long-term outlook remains positive, with healthy demand for its smart actuators.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free