reports
- Alison Turner
Sylvania Platinum - Earnings upside with chrome JV kicker in Q425
Sylvania reported FY24 EPS of 2.7c against our expectation of 5.8c and down 85% on the prior year due to mainly a 35% lower PGM 4E basket price. In addition, the company suffered the effects of much lower platinum group metal (PGM) prices, a delayed recovery in production and elevated levels of expense. The results included more granularity on the Thaba joint venture (JV), including accounting treatment and the outlook to FY28. However, thanks to high chrome prices and a better understanding of ...
Sylvania Platinum Ltd: 1 director
A director at Sylvania Platinum Ltd bought 70,000 shares at 45p and the significance rating of the trade was 54/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clear...
- Alison Turner
Sylvania Platinum - Long-term PGM price upside
Sylvania’s Q424 results were negatively affected by a delayed recovery in production following the 22-day strike during Q324. This resulted in 21% lower revenue than expected and EBITDA of only US$2.8m, 68% below our expectation. We have reduced our near-term platinum group metals (PGM) price assumptions on the back of elevated surface inventories and sustained South African production, but bolstered our long-term forecasts due to an expected higher demand for platinum and palladium on the back ...
Hybridan Small Cap Feast - 31 July 24
31st July 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: Delistings: Foresight Sustainable Forestry Company (FSF.L) has left the Premium Segment of the Main Market. What’s baking in the oven? ** Our daily digest of news from UK Small Caps If you would like to unsubscribe, please email with “unsubscribe me”...
- Alison Turner
Sylvania Platinum - Annual guidance maintained, despite strike
Sylvania has maintained annual production guidance despite Q324 results being affected by a 22-day strike, resulting in 10% lower production. The PGM basket price was stable during the quarter, with positive platinum momentum offset by palladium weakness and rhodium prices stable. Operating costs increased by 5.6%, in line with expectations. FY24 production guidance is for 75,000–76,000oz, despite the challenges in Q324. Our PGM outlook is unchanged from our moderated forecasts earlier in the ye...
Hybridan Small Cap Feast - 14 Mar 2024
Banquet Buffet*** Abingdon Health 9.25p £11.3m (ABDX.L) The lateral flow contract development and manufacturing organisation announces its unaudited interim results for the six months ended 31 December 2023. Revenue increased 117% to £2.4m (H1 2023: £1.1m). The Adjusted EBITDA loss decreased 47% to £1.2m (H1 2023: £2.2m). Furthermore, reduction in operating loss of 50% to £1.2m (H1 2023: £2.4m). The Board therefore expects that H2 2024 revenue will be significantly improved compared with H1 2024...
Hybridan Small Cap Feast - 07 Mar 24
7th March 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: TMT Acquisition (TMTA.L) has left the Standard Segment of the London Stock Exchange. What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: Change of Market: Banquet Buffet*** Brooks Macdonald Group £16.275 £267.6m (BRK.L) Th...
- Alison Turner
Sylvania Platinum - Sluggish PGM prices affect forecasts
Sylvania’s Q224 and H124 results were overshadowed by a lower PGM basket price, which resulted in a 10% reduction in revenue. With the delay in the PGM price recovery we expected, we have pared back our forecasts, particularly for platinum and rhodium. This, combined with Sylvania’s weaker-than-expected Q224 results, has resulted in a 30% reduction in our FY24 EPS estimate to 7.4p, with cuts of 23% and 14% for FY25 and FY26, respectively. Our new valuation is 118p/share, down 13% from our previo...
Hybridan Small Cap Feast - 16 Feb 24
16th February 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obj...
- Alison Turner
Sylvania Platinum - Q124 production up, costs down
Sylvania Platinum is a low-risk, high-yielding South African platinum group metals (PGM) dump retreatment operation. Despite a 15% fall in the PGM basket in Q124 versus Q423, the company maintained a healthy cash position of US$126.9m at end September 2023. Production in Q124 was better than we estimated. Unit costs were down in every cost category in response to higher ounces produced, but despite this, EBITDA and net profit were sharply lower. The company is controlling capex as capital alloca...
- Alison Turner
Sylvania Platinum - Stellar production, guidance beaten
Sylvania Platinum reported excellent production results offset by weak PGM prices. The platinum group metal (PGM) basket price dropped 28% y-o-y because of recessions in Europe and economic turmoil in China. This has resulted in low demand for PGMs especially from China, which is the world’s biggest consumer of PGMs, and de-stocking by Western OEMs. However, Sylvania has been able to limit its FY23 EPS decline to 17.5% through increased production and has kept its dividend payout of 8p per share...
- Alison Turner
Sylvania Platinum - New Thaba JV adds significant value
Sylvania Platinum (SLP) has announced a 50:50 joint venture (JV) with Limberg Mining Company (LMC), called Thaba, to process platinum group metals (PGM) and chrome ores from LMC’s historical tailings dumps and run-of-mine (ROM) ore. It is expected to start production in H225 and will for the first time see Sylvania receiving a chromite concentrate revenue stream on its own account. Sylvania is investing US$32m in capital expenditure and US$5m in working capital from its large cash resources (of ...
- Alison Turner
Sylvania Platinum - Chrome ore and PGM treatment joint venture
Sylvania Platinum has announced a 50:50 joint venture (JV) with Limberg Mining Company to process platinum group metals (PGM) and chrome ores from Limberg’s historical tailings dumps and run-of-mine ore. The mine, located in the northern part of the western limb of the Bushveld Complex, will start producing from H225, could add to Sylvania’s production and will diversify its resource mix to include chrome concentrate. Sylvania is investing $32m in capital expenditure (of which 50% will be paid b...
- Alison Turner
Sylvania Platinum - Lower rhodium prices overshadow strong production
Sylvania Platinum saw a significant quarter-on-quarter reduction in EBITDA in Q423 due to lower rhodium prices. We have lowered our rhodium and palladium price forecasts for the next two years, because of predicted demand in China and some de-stocking from OEMs, and have also reduced our long-term assumptions to allow for the current uncertainty. Our FY23e EPS has been adjusted downwards to 18.3c, with FY24e and FY25e EPS reduced by 40% to 9.0c and 11.2c, respectively. Our revised valuation is n...
- Alison Turner
Sylvania Platinum - Lower PGM prices affecting results and forecasts
Despite the lower Q323 production and higher unit costs, Sylvania Platinum remains highly cash generative with US$144.2m cash at end March 2023 versus US$123.9m at end Q223. Lower rhodium prices resulted in significantly lower EBITDA than Q223. We have lowered our rhodium and palladium price forecasts for the next two years because of expected lower demand in China and some de-stocking from OEMs. Our new valuation is 173.7p/share, versus the previous valuation of 186.9p/share.
- Ben Davis
- Tom Price
- Yuen Low
LIBERUM: Sylvania Platinum* - Guidance raised again
Sylvania has raised production guidance by 2koz to 72-74koz (Liberum est. 74koz), following another strong production quarter of 17.9koz. Even with the raise, guidance appears conservative: Q3’s typically weak, as mines are slow to restart post December’s break; final quarter only requires 15.6k-17.6koz of production. Note, production rates across the industry face the risk of more Eskom power disruptions (for revenues, any general fall in mine supply should be offset by corresponding price lift...
- Liberum Research Team
Hybridan Small Cap Feast - 21 Feb 23
21 February 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objec...
- Liberum Research Team
- Ben Davis
- Tom Price
- Yuen Low
LIBERUM: Sylvania Platinum* - 3p interim dividend & new policy
Sylvania has announced its interim financial results with a 3p interim dividend, which we did not forecast, as well as a new dividend policy. A minimum of 40% of FCF to be paid out with 1/3 at interim and 2/3 at full year results. This leaves our total for FY23 unchanged at 9p, and lifts our FY24 forecast from 10p to 14p. Most of the financial data have already been reported with operational results (Raising guidance on strong half), with EBITDA of $45.6m, trading on just 2.2x trailing 6mth EV/E...
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