Sylvania Platinum - Some weakness but cash-flow rich
Sylvania’s H122 results showed that despite lower production and higher costs, the company remains highly cash generative, and we expect end-December 2021 net cash of US$110m to surpass US$200m by end FY24. H122 production issues should be mostly resolved by the end of Q322. ZAR unit costs rose in H122 due to western Sylvania Dump Operations (SDO) experiencing water shortages and temporary tailings dam instability at the Lesedi SDO. These issues are being addressed and could further improve the US$ cost outlook, which is already benefiting from a weaker rand. We have cut our FY22 EPS forecast by 10% on lower H122 revenues, offset by lower US$ costs, but our longer-term forecasts remain unchanged. A windfall dividend of 2.25p was declared on 21 February.
Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.