Sylvania Platinum (SLP) H2 2024 earnings summary

Executive summary

• Achieved 72,704 ounces of PGM production, slightly below guidance due to strike-related disruptions and lower feed grades, but operations stabilized by year-end.

• Maintained a strong cash position with $97.8 million and no debt, enabling continued dividends and share buybacks.

• Faced a challenging market with a 36% year-over-year decline in PGM basket prices, impacting revenue and profitability.

• Advanced growth projects, notably the Thaba JV and Volspruit, expected to diversify revenue and contribute significantly from 2026.

• Continued focus on low-cost, low-risk operations and sustainable value creation for shareholders.

Financial highlights

• Net revenue for FY2024 was $81.7 million, down 37% year-over-year, mainly due to lower metal prices.

• Net profit was $6.9 million, with EPS of $0.0266.

• EBITDA reached $13.5 million, primarily impacted by lower PGM prices.

• All-in cost per ounce was $1,125–$1,168, with expectations to decrease to $890 in 2025 and $760 from 2026.

• Total dividends and buybacks for the year were just under $11.4 million, with annual dividends paid totaling $23.4 million.

Outlook and guidance

• Production guidance for FY2025 is 73,000–76,000 ounces, supported by improved Western operations and higher-grade third-party material.

• Thaba JV commissioning in H2 2025, with steady-state contributions expected from 2026, adding 6,800–9% PGM ounces and 210,000 tons of chrome annually.

• Capital expenditure will increase in the next two years to support growth and regulatory requirements, especially for tailings dams and strategic projects.

• Positive outlook for PGM and chrome markets, with expected deficits in PGMs and robust chrome demand driven by stainless steel growth.

• Ongoing optimisation and restructuring at Lesedi to improve profitability in a subdued price environment.