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SLP General Chat

Discussion in 'General Share Chat (SLP)' started by MJB1994, Jun 28, 2016.

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  1. Groucho

    Groucho Member

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    Sylvania Platinum Limited

    ("Sylvania" or "the Company")

    AIM (SLP)


    Share Buyback Update and Closure


    2 October 2020


    Sylvania Platinum Limited advises that as at 30 September 2020, it has acquired 168,694 Ordinary Shares for the period 1 September 2020 to 30 September 2020, representing approximately 0.06% of the Company's issued share capital, at Aus$0.9195 per Ordinary Share. This relates to the buyback of up to 1,650,339 ordinary shares of USD0.01 ("Ordinary Shares") from all certificated non-UK shareholders who hold 175,000 shares or fewer in the Company ("the Programme"), as advised in the Company's interim financial results on 17 February 2020 and subsequently extended on 1 July 2020. The shares will be placed into Treasury.

    This brings the total purchased during the course of the Programme to 1,047,599 Ordinary Shares representing 63.5% of the shares on offer under the Programme.

    Your Directors advise that the Programme has officially ended.

    Following the above transaction, the Company's issued share capital amounts to 286,845,657 Ordinary Shares of which a total of 15,368,967 Ordinary Shares are held in Treasury. Therefore, the total number of Ordinary Shares with voting rights in Sylvania is 271,476,690 Ordinary Shares.
     
  2. Groucho

    Groucho Member

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    28 October 2020

    Sylvania Platinum Limited

    ("Sylvania", the "Company" or the "Group")


    First Quarter Report to 30 September 2020

    Sylvania (AIM: SLP) is pleased to announce the results for the quarter ended 30 September 2020 ("Q1" or the "quarter"). Unless otherwise stated, the consolidated financial information contained in this report is presented in United States Dollars ("USD").

    Achievements

    · Sylvania Dump Operations ("SDO") declared 17,972 4E PGM ounces in Q1 (Q4 FY2020: 9,055 ounces; Q1 FY2020: 20,797 ounces);

    · The SDO recorded $41.5 million net revenue for the quarter (Q4 FY2020: $13.2 million; Q1 FY2020:$31.2 million);

    · Group cash costs per 4E PGM ounce decreased to ZAR11,021/ounce and $652/ounce quarter-on-quarter (Q4 FY2020: ZAR17,636/ounce and $983/ounce; Q1 FY2020: ZAR8,420/ounce and $573/ounce);

    · EBITDA of $29.7 million (Q4 FY2020: $4.2 million; Q1 FY2020: $19.2 million);

    · Net profit of $21.0 million (Q4 FY2020: $2.2 million; Q1 FY2020: $12.5 million) due to the increased production in the quarter;

    · Cash balance of $60.9 million (Q4 FY2020: $55.9 million; Q1 FY2020: $26.6 million).


    Challenges

    · The global COVID-19 pandemic remains an area of concern and management continue to sustain the various implemented measures to ensure both the health and safety of all employees and to limit any impact on production. Although the country remains in Level-1 Lockdown which does not hinder production, a resurgence of COVID-19 and subsequent return to previous levels of Lockdown could potentially affect operations; and

    · Reduced mining operations at some host mines due to the depressed chrome market continues to result in lower volumes of run of mine ("RoM") and current arisings material resulting in lower PGM feed grades and recoveries as outlined in earlier announcements.


    Opportunities

    · The new Lannex mill and spiral upgrade project to improve processing efficiencies and profitability based on current feed sources commissioned and circuit optimisation is ongoing;

    · Design of Lesedi secondary milling and flotation module to improve the upgrading and recovery of PGMs is advancing;

    · Mooinooi chrome proprietary processing modifications and optimisation project is in execution phase and expected to commission during Q3; and

    · The Group remains debt free and continues to maintain strong cash reserves to allow for the maintenance of the plants, fund capital expansion and process optimisation projects and the safeguarding of our employees during these times of uncertainty, as well as investing in adding value to our exploration and evaluation assets and paying the forth-coming dividend for the year ended June 2020 as previously announced.


    Commenting on the Q1 results, Sylvania's CEO, Jaco Prinsloo said:


    "After a steady return to full capacity production following the outbreak of COVID-19 and the Government imposed industry shutdown, I am pleased to report that the SDO produced 17,972 ounces for the quarter - a solid performance given the challenges we faced during the period. Whilst all the plants are now running at full capacity after the ramp-up of operations post lockdown and plant efficiencies have normalised, the reduced mining operations of certain host mines continued to impact on feed grades as expected and consequently Q1's PGM production decreased approximately 14% on the corresponding quarter of FY2020.


    Our management and technical teams continue to explore further opportunities to increase both feed grades and recovery efficiencies across operations that could add value in the near term and also continue to engage with various consultants to evaluate the potential of the longer-term mineral asset projects.


    With a solid Q1 performance behind us and operational conditions improving towards normal levels following the impacts associated with COVID-19, our management teams are now able to increase the focus on optimising efficiencies with the resource suite we currently have and will continue to deliver strong operational performances going forward. We anticipate to reach our estimated production target of approximately 70,000 ounces of PGM's for the year.


    The Company continues to enjoy the benefits of the strong PGM price environment and the 31% increase in gross basket price from Q4 has assisted in boosting our financial performance and cash reserves. The Company remains in a robust financial position with sufficient cash reserves to fund capital projects which will help mitigate any rise in costs and the possible reduction in future cash inflows due to the ongoing uncertainty relating to COVID-19."
    Screenshot_20201028-070936_Vox Markets.jpg
    Screenshot_20201028-071205_Vox Markets.jpg

    A. OPERATIONAL OVERVIEW


    Health, safety and environment

    Both the Tweefontein and Doornbosch operations have remained at a significant industry milestone of eight years Lost-time Injury ("LTI") free during the quarter and, while there were no significant occupational health or environmental incidents reported during the quarter, Millsell unfortunately suffered one LTI during August 2020 where an employee sustained an injury to his ribs in a vehicle related incident while offloading a telehandler.


    Focusing on and ensuring that employees' health and safety remains a priority, especially during these challenging times, and the management teams across the Group's operations remain committed to ensuring full compliance with health, safety and environmental legislation and procedures.


    Impact of COVID-19 and South African Government Imposed Lockdown

    Having commenced with scaled-down operations in May 2020, management implemented various initiatives in Q4 FY2020 to safeguard employees from the effects of COVID-19 and fortunately there have been no cases of COVID-19 reported within the Company or having affected any family members of our employees since 31 August 2020.All employees that have been affected by COVID-19 are now fully recovered and back at work.


    Sylvania continues to support the lockdown measures implemented by the Government and our priority is to protect the health and safety of our employees both during the Lockdown and especially now that operations are operating without any Lockdown imposed restrictions. At present, all plants are operating at full capacity and in accordance with all legislated safety and occupational regulations pertaining to the industry and country as a whole. The Company is however cognisant that should a resurgence in COVID-19 occur in the country, the possibility exists that the lockdown level may return to a level which may affect production.


    Operational performance

    The SDO produced 17,972 ounces for the quarter, a 98% increase compared to 9,055 ounces in Q4 FY2020 (Q1 FY2020: 20,797 ounces), as operations returned to a 'new normal' following the COVID-19 related shutdowns.


    PGM plant feed tons for the quarter increased by 61%, while PGM plant feed grade increased by 10% quarter-on-quarter and PGM recovery efficiencies increased by 12% from Q4. Comparably, when looking at the results achieved in Q1 FY2020, this translates to a marginal increase in PGM plant feed tons this quarter but a 10% decrease in PGM plant feed grade and a 7% decrease in recovery. Associated with reduced current arisings and RoM at the host mines, this equates to a 14% decrease in PGM ounce production compared to the comparative quarter in the previous financial year.


    Operational performance has stabilised from the previous quarter with improved PGM tons for the quarter on all ore sources, dump, current arisings and RoM material. Stability of re-mining continues to improve and the hybrid dump re-mining system implemented at some operations has proven successful and is to be rolled out further on the relevant Western and Eastern operations.


    Both the reported PGM feed grade and recovery efficiency increased due to improved blending strategy, technical focus and plant stability as plant feed quality and throughput improved. Potential technical work, innovations and process improvements are continuously being investigated in an attempt to optimise feed grades and metal recoveries.


    The total SDO cash costs decreased in Rand and Dollar terms quarter-on-quarter by 39% and 35% respectively to ZAR10,441/ounce and $617/ounce (Q4 FY2020: ZAR17,008/ounce and $948/ounce; Q1 FY2020: ZAR8,081/ounce and $550/ounce ) mainly as a result of the increase in production and stabilising of fixed costs as operations returned to normal following the COVID-19 operational disruptions experienced during the previous quarter.


    The SDO incurred capital expenditure of ZAR17.2 million during the quarter, a 3% increase which is largely aligned with planned major capital project execution schedules.


    Operational focus areas

    The global COVID-19 pandemic remains an area of concern and management continue to sustain the various measures to ensure both the health and safety of all employees and to limit the impact on production.


    The specific scale-down of operations at the host mines at Sylvania's Mooinooi and Lannex operations as announced previously, will continue to impact the SDO PGM ounce production profile during the next 12 to 18 months, which equates to a decrease of approximately 10-15% PGM ounce production on historic levels during this period. While the host mines are currently producing some open cast material to supplement underground mining shortfall, the lower grade and more oxidised dump and open cast material treated result in lower PGM feed grades and recoveries. This remains a focus area for improvement and various PGM flotation and reagent optimisation projects are in progress.


    Uncertainty at the national power utility relating to power supply remains a key focus for the Group in order to ensure we can mitigate any future power constraints, however no significant power interruptions occurred during the review period. Management are continuously assessing alternative power sources with a focus on sustainability and cost versus benefit.


    Operational opportunities

    The new Lannex mill and spiral upgrade is currently in operation after being commissioned during August 2020 and this project will enable the plant to improve processing efficiencies and profitability based on the current feed sources, that now includes RoM fines from open cast operations together with normal dump material. Circuit optimisation is ongoing.


    The Mooinooi chrome proprietary processing modifications and optimisation project is on track and is expected to be commissioned towards the end of Q3 FY2021 which will also improve PGM feed grades and ounces at the plant.


    As already announced, an optimisation project was initiated at the Lesedi plant on the Western operations to construct a new secondary milling and flotation module to improve the upgrading and recovery of PGMs, similar to existing Project Echo modules rolled out between 2016 and 2020. This proposed MF2 expansion at the Lesedi Plant is scheduled to commission towards the end of FY2021 and replaces the delayed Tweefontein MF2 module, due to power constraints, as a means to mitigate the impact on the full roll-out of Project Echo.


    B. FINANCIAL OVERVIEW


    Financial performance

    Net revenue for the quarter increased 213% from $13.2 million to $41.5 million due to a combination of the 98% increase in 4E PGMs delivered and a sales adjustment for ounces delivered in the previous quarter which increased 756% for the quarter. Quarterly performance year-on-year amounted to a 33% increase in net revenue for Q1 (Q1 FY2020: $31.1 million) largely as a result of the 71% increase in basket price to $2,834/ounce against the comparable period (Q1 FY2020: $1,654/ounce). The gross basket price for the quarter-on-quarter increased 35% from $2,107/ounce in Q4 FY2020 to $2,834/ounce, primarily due to the significant increase in rhodium price during the past quarter (Q1 FY2020: $1,654/ounce). The movement in the gross basket price on ounces delivered in Q4 FY2020 and invoiced during the quarter resulted in a positive sales adjustment of ZAR70.0 million ($4.1 million) for PGM concentrate delivered in the previous quarter.


    General and administrative costs increased by 18% quarter-on-quarter from $0.43 million to $0.51 million. These costs are incurred in USD, GBP and ZAR and are impacted by the exchange rate fluctuations over the reporting period.


    Group cash costs decreased 38% in ZAR from ZAR17,636/ounce ($983/ounce) to ZAR11,021/ounce ($652/ounce) due to the increase in ounces produced (Q1 FY2020: ZAR8,420/ounce and $573/ounce).


    Group EBITDA increased from $4.2 million to $29.7 million during the quarter, with a 55% increase year-on-year (Q1 FY2020: $19.2 million). Net profit increased to $21.0 million from $2.2 million due to the increase in production during the quarter (Q1 FY2020: $12.5 million).


    The Group cash balance increased from $55.9 million to $60.9 million during the quarter (Q1 FY2020: $26.6 million). Cash generated during the quarter from operations before working capital movements was $29.8 million with net changes in working capital amounting to a decrease of $25.3 million due mainly to the increase in trade and contract debtors as a result of the increased production. $1.0 million was spent on capital and 375,652 shares were bought back at a cost of $0.2 million during the quarter. The impact of exchange rate fluctuations on cash held at the quarter end was an increase of $1.6 million due to the strengthening of the ZAR against the USD. The Group holds a large majority of its cash in ZAR and will convert this to USD at opportune times.


    D. MINERAL ASSET DEVELOPMENT AND OPENCAST MINING PROJECTS


    The Group continues to assess the value of its mineral asset development projects on a regular and consistent basis and has announced that new studies of the Volspruit and Northern Limb projects have been initiated in order to assist in developing the most suitable strategy for these projects in the changing economic landscape.


    Volspruit Platinum Opportunity

    Consultants have been appointed to undertake specialist studies in order to update the EIA and thus obtain the Water Use and Waste licenses for the project. Once the planning phase for these processes has been completed, key dates expected for the main deliverables will be shared with the market.


    Metallurgical test work and concentrator flow sheet development is underway and on target for completion in November, with the technical report expected in January 2021.


    Northern Limb Projects

    The consultant appointed to assist Sylvania in evaluating the respective resources and exploring the economic potential of these deposits concluded their review work on existing geological data and models and submitted a preliminary report detailing their findings and proposal on the way forward in terms of the concept level study for Aurora. This report is currently being evaluated by our technical teams in order to determine the next steps.
     
    Last edited: Oct 28, 2020
  3. Groucho

    Groucho Member

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    29 January 2021

    Sylvania Platinum Limited

    ("Sylvania", the "Company" or the "Group")



    Second Quarter Report to 31 December 2020

    Sylvania (AIM: SLP) is pleased to announce the results for the quarter ended 31 December 2020 ("Q2" or the "quarter"). Unless otherwise stated, the consolidated financial information contained in this report is presented in United States Dollars ("USD").

    Achievements

    · Sylvania Dump Operations ("SDO") declared 18,363 4E PGM ounces in Q2 (Q1: 17,972 ounces);

    · SDO recorded $43.7 million net revenue for the quarter (Q1:$41.5 million);

    · EBITDA of $29.1 million (Q1: $28.8 million);

    · Net profit of $20.3 million (Q1: $20.1 million);

    · Cash balance of $67.1 million (Q1: $60.9 million) after payment of dividends, royalties and income tax.


    Challenges

    · The global COVID-19 pandemic, with South Africa at a revised level 3 lockdown, remains a challenge we continue to monitor; and

    · Significant power interruptions were experienced at Western operations related to vandalism of Eskom sub-stations and electrical cable theft in the area during the past quarter and management is evaluating the outcomes of a power mitigation study to determine the possible measures to reduce any impact.


    Opportunities

    · Ongoing circuit optimisation at the new Lannex mill and spiral upgrade is progressing well and will improve processing efficiencies and profitability based on current feed sources;

    · Mooinooi chrome proprietary processing modifications and optimisation project remains on track to commission during Q3; and

    · The Group remains debt free and continues to maintain strong cash reserves to allow for funding of capital expansion and process optimisation projects; the safeguarding of our employees during these times of uncertainty; upgrading our exploration and evaluation assets and returning value to all stakeholders.


    Commenting on the Q2 results, Sylvania's CEO, Jaco Prinsloo said:

    "Operational performance has continued to stabilise from previous quarters as the operations teams have embraced the 'new normal' way of production incorporating COVID-19 related protocols implemented during H2 FY2020 and I am pleased to report that the Company produced 18,363 ounces for the quarter."

    "This solid performance during Q2 was in line with our internal plan and we therefore remain on track to achieve the estimated target production of approximately 70,000 ounces of PGMs for the year. I commend our operations teams in the way they have adapted and achieved despite the inconsistency in supply received from our host mines. The benefits of the implementation of Project Echo and the optimisation projects is evident."

    "In light of the global pandemic and as a result of the increasing contagion of COVID-19 in the country, the Company continues to refine and enhance safety measures to ensure the health and safety of all employees and their loved ones. Although we are fortunate not to have had any production interruption during this period, the impact on our team has been more significant due to the physical and emotional burden on our employees who either fell ill due to the virus, or had to deal with the loss of loved ones and we continue to offer our support and keep them in our prayers."

    "Financially the Company continued to benefit from the stronger PGM basket price in recent months and a decision will be taken on the windfall dividend at the review of the interim accounts at the forthcoming Board meeting in February 2021."

    Screenshot_20210129-070908_Vox Markets.jpg

    A. OPERATIONAL OVERVIEW


    Health, safety and environment

    The Company is pleased to report that no significant occupational health or environmental incidents occurred during the quarter and both the Tweefontein and Doornbosch operations have remained at a significant industry milestone of eight and a half years Lost-time Injury ("LTI") free achieved during the quarter.


    Impact of COVID-19 and South African Government Imposed Lockdown

    Having recommenced operations in Q4 FY2020, management implemented various initiatives to safeguard employees from the effects of COVID-19. The new COVID-19 variant which has emerged in the country, has presented new challenges to the Company with four positive cases being reported during December 2020, and 20 new cases reported during January 2021 after not having any infections during August to November 2020. The total reported infections since March 2020 to date is 38 of which 31 employees have recovered and returned to work.

    The global COVID-19 pandemic, with SA now at a revised Level 3 status, remains an area of concern and management continue to sustain and enhance the various measures to ensure both the health and safety of all employees and to limit the impact on production. Access to sites has been restricted to employees and essential services required to sustain operational performance. Sylvania continues to support the revised Level 3 lockdown measures announced during December 2020 and implemented by the Government. At present, all plants are operating at full capacity and in accordance with all legislated safety and occupational regulations pertaining to the industry and country as a whole.


    Operational performance

    SDO produced 18,363 ounces in Q2, a 2% increase compared to 17,972 ounces in Q1 FY2021. PGM plant feed tons and PGM plant feed grade remained stable quarter-on-quarter and PGM recovery efficiencies increased marginally by 2% from Q1. Operational performance has continued to stabilise from previous quarters as the operations have embraced the "new normal" way of production post COVID-19 related disruptions experienced during H2 FY2020.

    Total SDO cash costs increased in Rand and Dollar terms quarter-on-quarter by 5% and 14% respectively to ZAR11,779/ounce and $756/ounce (Q1: ZAR11,238/ounce and $665/ounce) due to a combination of the higher Rand cost and 8% stronger ZAR/$ exchange rate. The Rand cost was impacted by higher process consumables and re-mining costs associated with lower grade opencast ROM sources treated at some operations as well as the mineral royalty tax that is calculated on the half year ounces and paid in December 2020. The Q1 royalty tax expense was adjusted in Q2 and the higher basket price and lower capital allowance in Q2, as it was fully utilised in the prior financial year, resulted in a higher royalty tax percentage over the full period.

    SDO incurred capital expenditure of ZAR19.7 million ($1.2 million) during the quarter, a 15% increase which is aligned with planned capital project schedules.


    Operational focus areas

    Optimisation of flotation performance and recovery efficiencies remain a focus area at Western operations where lower grade and more oxidised open cast ROM material is currently being treated as a result of the previously announced scale-down at the host mines.

    Optimisation of the new milling and upgraded spiral sections at Lannex will continue during the next quarter, after being commissioned during August 2020, enabling the plant to improve processing efficiencies and profitability on the current suite of resources. Open cast ROM supply from the host mine was inconsistent during the past quarter, but ROM feed is expected to stabilise during Q3.

    Although the uncertainty at the national power utility relating to power supply remains a key focus for the Group, there were no significant power disruptions or production losses related to load-shedding by the utility during the past quarter. However, there has been a significant increase in vandalism and theft of copper cables at various sub-stations of the utility that affected power supply and production, especially at Mooinooi and Millsell at the Western Operations, which had approximately 80 hours and 85 hours downtime respectively. Management is currently evaluating the outcomes of a power mitigation study that compared various back-up supply options to determine the best way forward for operations to mitigate the impact of either potential future load-shedding or supply interruptions by the utility.


    Operational opportunities

    The Mooinooi chrome proprietary processing modifications and optimisation project to improve fines classification and fine chrome recovery efficiency, as announced earlier, is on track and is expected to be commissioned towards the end of Q3 FY2021 which will contribute towards improving PGM feed grades and ounces at the plant.

    The proposed MF2 expansion project at the Lesedi Plant to construct a new secondary milling and flotation module to improve the upgrading and recovery of PGMs, similar to successful Project Echo modules rolled out between 2016 and 2020, has commenced and is scheduled to commission towards the end of FY2021.

    Based on recent results from the Company's specific fine chrome recovery research and test work initiative that was initiated in late 2019, a circuit configuration and technology has been identified to enable the economic recovery of fine chrome from some existing dumps, that historically was uneconomical to recover. This latest development could enable the Company to re-treat low PGM grade tailings resources, that would otherwise have been sterilised, to extend the operational life of PGM operations at selected sites while adding value to the host mines through increased chrome recovery and production.


    B. FINANCIAL OVERVIEW


    Financial performance

    Revenue, after applying the payability and smelter costs, for the quarter increased 5% from $41.5 million to $43.7 million as a result of the combination of the 2% increase in 4E PGMs delivered and the increase in the basket price. The gross basket price for the quarter increased 17% from $2,834/ounce in Q1 to $3,323/ounce as a result of the continued increase in the rhodium price during the past quarter.

    General and administrative costs increased quarter-on-quarter from $0.51 million to $0.61 million which includes the non-cash share-based payment expense on bonus share awards. These costs are incurred in USD, GBP and ZAR and are impacted by the exchange rate fluctuations over the reporting period.

    The Group cash balance increased from $60.9 million to $67.1 million during the quarter. Cash generated during the quarter from operations before working capital movements was $29.4 million with net changes in working capital amounting to a decrease of $7.1 million mainly due to the increase in trade and contract debtors as a result of the increase in the gross basket price. $1.3 million was spent on capital and 1,448,075 million shares were bought back at a cost of $1.1 million. $5.9 million was paid out in dividends and provisional South African income tax for the six months to 31 December 2020 of $15.1 million was paid. The impact of exchange rate fluctuations on cash held at the quarter end was an increase of $7.1 million due to the strengthening of the ZAR against the USD. The Group is obliged to hold a large portion of its cash in ZAR and will convert this to USD as and when the opportunity arises.

    Group cash costs increased 3% in ZAR from ZAR11,818/ounce ($699/ounce) to ZAR12,153/ounce ($780/ounce), Group EBITDA increased from $28.8 million to $29.1 million and net profit increased to $20.3 million from $20.2 million. Provisional income tax and royalty tax payments made in December 2020 resulted in a cash outflow of $18.01 million.


    D. MINERAL ASSET DEVELOPMENT AND OPENCAST MINING PROJECTS

    As previously announced, new studies of the Volspruit and Northern Limb projects were initiated and continue to assist in developing the most suitable strategy for these projects in the changing economic landscape.


    Volspruit Platinum Opportunity

    Detail design for the Permitting Applications has been completed. Specialist work for updating the EIA and Water Use License will commence during Q3 as part of the overall process to conclude the final project authorisations.

    In terms of the new technical study that was announced earlier, technical consultants have been engaged since mid-2020 to evaluate and optimise mine designs and evaluate the process design and update metallurgical performance parameters through additional test work. Preliminary mining design information has been received already, but the last metallurgical test work was concluded during December 2020, with the final test work report expected during H2 FY2021.


    Northern Limb Projects

    The specialist consultants employed to assist Sylvania in evaluating the resources and exploring the economic potential of the respective deposits on the Northern Limb, have completed initial studies and identified specific higher-grade portions along the ore body that could potentially be attractive for shallow, low risk open cast extraction and PGM processing.

    In order to confirm initial findings and to improve the current resource estimate, a concept level mining study for the project has been scoped, which will include infill drilling and additional assays, which will start during Q3 and continue until late 2022.


    Grasvally

    The sale of Grasvally to Forward Africa Mining (Pty) Ltd ("FAM") to acquire 100% of the shares in and claims against Grasvally Chrome Mine (Pty) Ltd for a total consideration of ZAR115.0 million is still ongoing and the Option Agreement as negotiated and reported in the Company's FY2020 report is still valid.
     
  4. Groucho

    Groucho Member

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  5. Groucho

    Groucho Member

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    Sylvania Platinum

    One shorter-term play I’m focused on at the moment is PGM producer Sylvania Platinum (LSE:SLP). PGMs like platinum and palladium are key for fabricating catalytic converters to reduce exhaust emissions in traditional cars and hybrid electric vehicles. So while the share of EVs is expected to rise to 10% of all new car sales by 2025, and 28% by 2030 — that’s according to the latest Bloomberg New Energy Finance report — there will still be high demand for PGMs.

    Rhodium is the most effective catalytic metal to cut nitrogen oxide emissions and it too remains a critical component in traditional petrol and diesel-powered cars. Demand growth is expected to remain robust over the next 10 years.

    So the fact that Sylvania Platinum is focused in the main on platinum, palladium and rhodium, (and to a lesser extent iridium and ruthenium) makes this a solid choice for me.

    I bought into Sylvania Platinum in June 2020 at around 47p and I’m up about 91% on my investment since then. I’ve got no intention of selling just yet. That’s because I believe the project economics continue to stack up even at this elevated level. A forward price to earnings ratio of just 5.5 makes SLP shares super cheap, still, even taking into account expected double-digit forward EPS growth and I’m adding to my holdings all the time.

    Brokers and analysts Liberum Capital have a short-term price target of 115p on Sylvania Platinum, and longer-term forecasts approaching 190p. I’d agree that there is at least another 50% upside to be had from Sylvania Platinum, especially taking into account future development plans for two open-cast pits at Northern Limb, just to the north of its seven retreatment processing plants.

    Its Lannex mill is now in operation having been commissioned in August 2020, offering improved efficiency and profitability from SLP’s current feed sources, while its Mooinooi chrome processing modifications, which are designed to improve PGM grades and output are expected to be commissioned by the end of Q3 2021.

    The best thing about Sylvania Platinum for me is that it is a very low-cost producer. It focuses on extracting PGMs from chrome dumps and tailings, rather than spending vast amounts on drilling new holes in the ground. That’s one of the reasons why SLP now has £60 million in cash on its balance sheet and crucially, no debt.

    Profitability-wise this is a stunner, too. Operating margins increased to 47% (!) in FY 2019 results, return on capital sits in the mid 30% and return on equity, so I’m confident Sylvania Platinum is using its cash wisely.

    Seeing profits and EPS both double between 2019 and 2020 makes this relatively unknown AIM stock one of my clearest no-brainer buys for 2021. A quick look at the company’s FY 2020 financial performance shows year on year net revenue growth of 62%, too.

    There are also plans for a special windfall dividend in the works this year, based on soaring PGM basket prices. The figures haven’t been finalised to my knowledge, but I’d expect something in the region of 14p to 18p per share.

    19 Jan 2021 | by: Tom Rodgers
    https://www.valuethemarkets.com/202...battery-metals-key-investing-themes-for-2021/
     
    Last edited: Feb 4, 2021
  6. Groucho

    Groucho Member

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    9 February 2021


    Sylvania Platinum Limited

    ("Sylvania", the "Company" or the "Group")



    Notice of Results

    Sylvania Platinum Limited (AIM: SLP) will announce its interim financial results for the six months ended 31 December 2020 on Monday 22 February 2021.


    The Company will be hosting a webinar for analysts on the day at 9:30am.

    To register your interest please email sylvania@almapr.co.uk.


    9 February 2021

    Sylvania Platinum Limited

    ("Sylvania", the "Company" or the "Group")


    Investor Presentation


    Sylvania Platinum Limited (AIM:SLP) is pleased to announce that Jaco Prinsloo, CEO, and Lewanne Carminati, CFO, will provide a live investor presentation relating to the Company's interim financial results for the six months ended 31 December 2020, via the Investor Meet Company platform on 23 February 2021 at 4pm UK time.

    The Company is committed to ensuring that there are appropriate communication channels for all elements of its shareholder base so that its strategy, business model and performance are clearly understood.

    The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

    Investor feedback can also be submitted directly to management post-event to ensure the Company can understand the views of all elements of its shareholder base.


    Investors can sign up to Investor Meet Company for free and include Sylvania Platinum Limited via

    https://www.investormeetcompany.com/sylvania-platinum-limited/register-investor

    Investors who have already registered and elected to meet the Company, will be automatically invited.
     
  7. Groucho

    Groucho Member

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    30 April 2021

    Sylvania Platinum Limited

    ("Sylvania", the "Company" or the "Group")


    Third Quarter Report to 31 March 2021

    Sylvania (AIM: SLP) is pleased to announce the results for the quarter ended 31 March 2021 ("Q3" or the "quarter"). Unless otherwise stated, the consolidated financial information contained in this report is presented in United States Dollars ("USD").

    Achievements

    · Sylvania Dump Operations ("SDO") delivered 17,420 4E PGM ounces in Q3 (Q2: 18,363 ounces);

    · SDO recorded $74.2 million net revenue for the quarter (Q2:$43.7 million);

    · EBITDA of $58.7 million (Q2: $29.1 million);

    · Net profit of $41.3 million (Q2: $20.3 million);

    · First payment made to employees under the Employee Dividend Entitlement Plan ("EDEP"); and

    · Cash balance of $102.1 million (Q2: $67.1 million). Post period end, the Company paid a one-off Windfall Dividend of $14.3 million.


    Challenges

    · Higher degree of oxidation in some current feed sources, especially at some Western operations, resulting in lower than anticipated PGM recovery efficiencies; and

    · Inconsistent supply of RoM material to the Lannex milling plant during the quarter resulted in production challenges that impacted both processing efficiencies and operating costs.


    Opportunities

    · Mooinooi chrome proprietary processing modifications and optimisation project commissioned during the quarter, in line with expected timetable, with further optimisation work to continue and be completed during Q4;

    · Lesedi MF2 project currently in execution with construction remaining on track and commissioning estimated to commence towards the end of Q2 FY2022; and

    · The Group remains debt free and continues to maintain strong cash reserves to allow for funding of capital expansion and process optimisation projects; the safeguarding of employees during these times of uncertainty; upgrading the Group's exploration and evaluation assets; and returning value to all stakeholders.


    Commenting on the Q3 results, Sylvania's CEO, Jaco Prinsloo said:

    "I am pleased with the reported PGM production of 17,420 ounces for Q3 which is historically a lower production quarter for the Group during Sylvania's financial year. This performance is in line with management projections and the Group remains on track to produce approximately 70,000 ounces for the current financial year."

    "The Group has benefited from a strong PGM basket price, boosted by the high rhodium price as well as the recent performance of both iridium and ruthenium which contributed to the record profits for quarter. The increase in the dollar cash operating cost per ounce is largely due to the lower ounce production and fluctuation in the ZAR/USD exchange rate."

    "Whilst COVID-19 remains challenging, I am proud of our management's and employees' continued efforts to sustain and enhance the various measures to ensure both the health and safety of all employees and to limit the impact on production."

    "Finally, the Company was pleased to pay the Windfall Dividend of $14.3 million on 9 April 2021."

    Screenshot_20210430-075734_Vox Markets.jpg

    Sylvania Platinum - 3rd Quarter Results #SLP https://www.voxmarkets.co.uk/rns/announcement/0bca9c7d-1b74-4eed-80b8-022c7fd8631e #voxmarkets
     
  8. Groucho

    Groucho Member

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    794E15C6-527C-48C9-86CA-962CCCCB7CB2.jpeg

    Cash pile to deliver dividends and further productivity gains
    Without any major committed capex outstanding, the company can deliver significant dividends to shareholders. Our assumption is for 4 cents per share, or $10.9m, for the final dividend, which would be a doubling of the year before. Whilst there is upside risk to this estimate, we are cognizant that the Board wish to remain conservative on the outlook.
    Management do have other various capital expansion and process optimisation projects in the pipeline, as well as seeking to upgrade its existing exploration and evaluation project portfolio (Volspruit, Northern limb projects etc) for possible sales.
     
  9. Groucho

    Groucho Member

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    27 July 2021

    Sylvania Platinum Limited

    ("Sylvania", the "Company" or the "Group")


    Fourth Quarter Report to 30 June 2021

    Sylvania (AIM: SLP) is pleased to announce the results for the quarter ended 30 June 2021 ("Q4" or the "quarter"). Unless otherwise stated, the consolidated financial information contained in this report is presented in United States Dollars ("USD").

    Achievements
    • Sylvania Dump Operations ("SDO") delivered 16,289 4E PGM ounces in Q4 (Q3: 17,420 ounces) achieving an annual production of 70,043 4E PGM ounces (FY2020 69,026 ounces);
    • SDO recorded $48.4 million net revenue for the quarter (Q3:$74.2 million);
    • Group EBITDA of $28.7 million (Q3: $58.7 million), noting the boost the spike in the Rhodium price had on Q3 revenue and earnings which has pulled back in Q4;
    • Net profit of $14.7 million (Q3: $41.3 million); and
    • Cash balance of $101.1 million (Q3: $102.1 million) after payment of the second provisional income tax and royalty tax charges ($35.3 million) as well as the Windfall dividend ($14.3 million).

    Challenges
    • Lower PGM feed grades and recovery potential associated with significant increase in open cast RoM sources received during the quarter. This balance will be addressed with PGM recovery expected to remain in the 52% to 54% range during the next financial year; and
    • Higher costs associated with the securing of and the logistics around additional RoM sources at Mooinooi has impacted overall operating costs.

    Opportunities
    • Lesedi secondary milling and flotation ("MF2") project execution progressing well and on track to start contributing towards production from early H2 FY2022;
    • Development of the Tweefontein MF2 project has commenced with commissioning anticipated during H1 FY2023;
    • Power mitigation strategies have been developed with conceptual designs completed for operations most significantly affected by stability of power supply and interruptions during the past year with roll-out anticipated to commence in FY2022; and
    • The Group remains debt free and continues to maintain strong cash reserves to allow for funding of capital expansion and process optimisation projects; the safeguarding of employees during these times of uncertainty; upgrading the Group's exploration and evaluation assets and returning value to all stakeholders.

    Commenting on the Q4 results, Sylvania's CEO, Jaco Prinsloo said:

    "Reflecting back on the past year, I am incredibly proud of our team for achieving the annual production of 70,043 4E PGM ounces for the financial year. Whilst PGM production in Q4 was slightly lower than the previous quarter, production of 16,289 4E PGM ounces was in line with management projections and was a robust contribution to our full year production.

    "Whilst the record profits realised in Q3 were boosted by the spike in the price of rhodium and its effect on our basket price, we have seen quite a pull-back in the rhodium price in recent months which has inevitably impacted the Group's revenue and profit for Q4. Noting that our full annual financial statements are due to be published in September, an annual dividend will be considered by the Board at its August meeting."

    "In terms of COVID-19, the Company continues its efforts to moderate the effects of the virus on our employees and I am proud of the continued individual and collective efforts to ensure both the health and safety of all our employees and to limit the impact on production. Our thoughts are with all those that have lost loved ones or have been impacted by this pandemic.

    "Finally, the Board acknowledges that the recent spate of civil unrest experienced in two of the country's provinces in the second week of July may have been unsettling for investors, as it has been for most South Africans. Fortunately, none of our operations were impacted by this unrest and although the earlier protests were not in the provinces where our operations are located, management still continues to monitor the situation closely, particularly from a supply chain point of view and to ensure that all potential risks are assessed and mitigated in this regard."

    Screenshot_20210727_071753.jpg

    Sylvania Platinum - Fourth Quarter Report to 30 June 2021 #SLP https://www.voxmarkets.co.uk/rns/announcement/ecc38f25-9e08-4a3e-95b9-41219270d65f #voxmarkets
     
  10. Groucho

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  11. Groucho

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    6 September 2021

    Sylvania Platinum Limited

    ("Sylvania", the "Company" or the "Group")


    Final Results to 30 June 2021

    Sylvania (AIM: SLP) is pleased to announce its final results for the year ended 30 June 2021. Unless otherwise stated, the consolidated financial information contained in this report is presented in United States Dollars ("USD").

    Achievements
    • Sylvania Dump Operations ("SDO") achieved target production of 70,043 4E PGM ounces for the year (FY2020: 69,026 4E PGM ounces);
    • Net revenue increased 79% to $206.1 million (FY2020: $115.1 million);
    • Adjusted Group EBITDA increased 108% to $144.9 million (FY2020: $69.6 million);
    • Group net profit increased 143% to $99.8 million (FY2020: $41.0 million);
    • Basic earnings per share ("EPS") increased 151% to 36.65 US cents per share (FY2020: 14.62 US cents per share);
    • Cash dividend of 4p per Ordinary Share DECLARED by the Board of Directors; and
    • Positive Group cash balance of $106.1 million with no debt and no pipeline financing.

    Challenges
    • Effects of the global COVID-19 pandemic on employees and operations; and
    • Lower PGM feed grades and recovery potential associated with the significant increase in open cast ROM sources which led to associated higher costs.

    Opportunities
    • Lesedi secondary milling and flotation ("MF2") project progressing well and on track to start contributing towards production from early H2 FY2022;
    • Development of the Tweefontein MF2 project has commenced with commissioning anticipated during H1 FY2023;
    • Additional chrome tails current arisings from an existing Eastern Limb 3rd party chrome operation have been secured during the period with the potential to add approximately 2,000 to 3,000 ounces of PGMs per annum;
    • The Group continues to maintain strong cash reserves to allow funding of capital expansion and process optimisation projects; the safeguarding of employees during these times of uncertainty; upgrading the Group's exploration and evaluation assets; and returning value to all stakeholders; and
    • R&D efforts have identified potential that would enable the Company to re-treat low PGM grade tailings at selected sites that would otherwise be sterilised, thereby extending the operational life of these operations.

    Post Period End
    • Post-period end, operations have been temporarily suspended at Lesedi as a precautionary safety measure due to inadequate water drainage and increasing phreatic water levels at the tailings dam.

    Commenting on the period, Sylvania's CEO Jaco Prinsloo said:

    "I am proud to report on our strong performance in FY2021, a year in which we achieved our production target of delivering 70,043 4E PGM ounces, testament to the strength of our management team who achieved this whilst navigating the unchartered territory of a global pandemic. Further to this, we successfully managed to maintain our excellent standards in terms of health, safety and the environment, whilst ensuring our staff were well supported."

    "With all operations back to normalised capacity and efficiencies during the year, the implementation of our process optimisation initiatives such as Project Echo modules and improved fines classification technology further contributed to the solid results throughout the period and enabled us to meet our stated production target for the year. However, as expected, the reduced mining operations of certain host mines has continued to impact on feed grades. Our management and technical teams continue to explore further opportunities to improve both feed grades and recovery efficiencies across operations that could add value in the near term, whilst we also continue to engage with various consultants to evaluate the potential of our existing longer-term mineral asset projects."

    "The Company continues to benefit from the strong PGM price environment, which combined with strong operational performance, will continue to generate extremely healthy profits. Consequently, the Company was able to pay a windfall dividend of 3.75p per ordinary share ($14.3 million) in April 2021 and I am glad to report that the Board has declared an annual cash dividend of 4p per Ordinary Share for the period, which is a 150% increase on FY2020, payable on 3 December 2021. Should PGM prices remain favourable, the possibility of another windfall dividend for CY2021 will be evaluated by the Board during February 2022.We remain in a robust financial position with sufficient cash reserves to finance capital projects, fund future growth and enable us to mitigate any potential adverse impacts due to the ongoing uncertainty relating to COVID-19."

    "I would like to thank our management and operations teams for their continued innovation and efforts in the face of some trying circumstances, enabling us to maintain production and performance. It is this dedication I believe that will put us on a strong platform for achieving the expected annual production target of approximately 70,000 4E PGM ounces for the 2022 financial year."

    Screenshot_20210906_072812.jpg

    Sylvania Platinum - Annual Financial Report #SLP https://www.voxmarkets.co.uk/rns/announcement/82b20740-0ffe-46d3-b0c7-34b0bfcaa2a8 #voxmarkets
     
    Last edited: Sep 6, 2021

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