Sylvania Platinum (SLP) Q4 2024 TU earnings summary

Executive summary

• Q4 FY2024 PGM production was 17,067 4E ounces, slightly down 1% from Q3 FY2024 due to slower ramp-up post-strike and lower feed grades at some operations.

• FY2024 total PGM production reached 72,704 4E ounces, marginally below the annual target of 74,000–75,000 4E ounces.

• Net revenue for the quarter was $20.6 million, up 2% from Q3 FY2024, driven by a 6% increase in the average 4E gross basket price.

• Group EBITDA for Q4 FY2024 was $2.8 million, down 10% sequentially due to higher direct costs from external feed purchases.

• Net profit increased 9% quarter-on-quarter to $2.8 million, mainly due to lower tax following the Grasvally interest write-off.

Financial highlights

• Q4 FY2024 net revenue: $20.6 million (Q3 FY2024: $20.3 million); FY2024 net revenue: $83.2 million.

• Group EBITDA: $2.8 million (Q3 FY2024: $3.2 million); net profit: $2.8 million (Q3 FY2024: $2.5 million).

• Cash balance at 30 June 2024: $97.8 million, down from $101.3 million at 31 March 2024.

• Capital expenditure for the quarter: $5.3 million, including $3.1 million for Thaba JV.

• Special dividend of $3.3 million paid in June 2024 from Grasvally settlement proceeds.

Outlook and guidance

• Mooinooi and Millsell operations have stabilized and are expected to perform at steady-state capacity.

• Thaba JV project construction is on schedule, with commissioning targeted for March 2025.

• Volspruit project Scoping Study results expected in August 2024.

• Strong cash reserves support expansion, diversification, and JV initiatives.

• Performance enhancement initiative underway at Lesedi to address profitability.