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Sylvania Platinum (GB:SLP)
:SLP
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Sylvania Platinum
(LSE:SLP)
Rating:69Neutral
Price Target:
73.00p
▲(4.29%Upside)
Sylvania Platinum (SLP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£182.08M
Dividend Yield4.29%
Average Volume (3M)1.19M
Price to Earnings (P/E)21.2
Beta (1Y)1.32
Revenue Growth-5.61%
EPS Growth-31.96%
CountryUK
Employees777
SectorBasic Materials
Sector Strength66
IndustryOther Precious Metals
Share Statistics
EPS (TTM)N/A
Shares Outstanding260,109,340
10 Day Avg. Volume1,654,890
30 Day Avg. Volume1,185,366
Financial Highlights & Ratios
PEG Ratio-0.31
Price to Book (P/B)1.13
Price to Sales (P/S)0.00
P/FCF Ratio5.58
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit11.01
Enterprise Value/Ebitda2.57
Forecast
1Y Price Target
£85.00Price Target Upside21.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Sylvania Platinum Business Overview & Revenue Model
Company DescriptionSylvania Platinum Limited (SLP) is a mining company headquartered in the United Kingdom, primarily engaged in the exploration, extraction, and processing of platinum group metals (PGMs). The company operates in the mining sector, focusing on the production of platinum, palladium, and rhodium. Sylvania Platinum's core activities are centered around its tailings retreatment operations and its exploration projects within the Bushveld Igneous Complex in South Africa.
How the Company Makes MoneySylvania Platinum makes money through the extraction and sale of platinum group metals (PGMs), including platinum, palladium, and rhodium, which are obtained from its tailings retreatment operations. The company processes ore from its tailings dumps, extracting valuable PGMs for sale to global markets. Key revenue streams include the sale of these metals to refineries and end-users in various industries such as automotive, jewelry, and industrial applications. The company's earnings are influenced by factors such as global PGM prices, operational efficiency, and the successful recovery of metals from their mining operations. Additionally, Sylvania Platinum may form strategic partnerships or enter agreements to enhance operational capabilities and market access, contributing to its revenue generation.
Sylvania Platinum Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q2-2025)
| % Change Since: 49.25%|
Next Earnings Date:Sep 04, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong production and financial performance, introduction of a new revenue stream through the Thaba JV, and shareholder returns through dividends and buybacks. However, there were concerns about rising costs and market volatility.Q2-2025 Updates
Positive Updates
Record Production and Revenue Growth
Produced 39,840 ounces, a 3% improvement from the previous year, marking one of the top three half-year performances. Net revenue reached $47.6 million, a 17% increase from the prior period.
Strong Financial Performance
Group EBITDA increased by 36%, reaching $9 million. Maintained a strong cash position with no debt.
Introduction of New Revenue Stream
Thaba joint venture introduces a diversified revenue stream with chromite production, expected to significantly contribute to future earnings.
Increased Dividend and Share Buybacks
Declared an interim dividend of $0.75 per share and conducted share buybacks worth $1.7 million, returning $3.3 million to shareholders.
Negative Updates
Higher Operating Costs
Cost of sales increased by 18% due to direct and indirect operating costs, with labor, power, and consumables being the largest contributors.
Challenges in Feed Production
Slightly lower PGM feed tons due to hydro mining challenges and strategic stoppage at Lesedi.
Market Volatility
Concerns over low PGM and chrome prices affecting future profitability, despite current robust outlook.
Company Guidance
During the call, Sylvania Platinum Limited provided guidance on several key metrics for the fiscal year 2025. The company reported a 3% increase in production, reaching 39,840 ounces of PGMs, which contributed to a 17% rise in net revenue to $47.6 million. The group’s EBITDA improved by 36% to $9 million, reflecting enhanced operational efficiency and a favorable PGM basket price increase of 6%. The company maintained a strong cash position with no debt and announced an interim dividend of $0.75 per share, alongside share buybacks amounting to $1.7 million. Sylvania also revised its annual production guidance upward to 75,000-78,000 ounces from the previous 73,000-76,000 ounces, supported by a 17% improvement in PGM feed rate. The Thaba JV is expected to begin production by April-May 2025, with steady-state contributions anticipated in 2026-2027. Despite a challenging market, the company remains confident in its strategic growth initiatives and operational stability, underscored by a recently concluded two-year wage deal and an absence of Eskom-related power disruptions since March 24th.Sylvania Platinum Financial Statement Overview
Summary
Sylvania Platinum shows a strong balance sheet with low leverage and robust equity. However, declining revenues and negative free cash flow indicate potential challenges, requiring strategic adjustments and careful cash flow management.Income Statement
The company's TTM total revenue decreased compared to the previous year, indicating a declining trend. Gross profit margin stands at 15.1%, showing moderate profitability. However, net profit margin improved to 12.5%, and EBIT margin is at 10.3%, reflecting efficient cost management. Revenue growth rate is negative, highlighting a significant decline from previous periods.75
Positive
Balance Sheet
The company maintains a strong equity position with an equity ratio of 86.9%, indicating robust financial health. The debt-to-equity ratio is minimal at 0.3%, showcasing low leverage. ROE is 4.9%, reflecting decent returns on equity but showing a decline compared to previous years.80
Positive
Cash Flow
Free cash flow has turned negative in the TTM, signaling potential liquidity issues. Operating cash flow to net income ratio is 1.7, indicating solid cash generation from operations. However, free cash flow to net income ratio is negative, highlighting challenges in capital expenditure management.65
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 88.50M | 81.71M | 130.20M | 151.94M | 206.11M | 114.09M | Gross Profit |
| 13.36M | 12.68M | 64.00M | 83.20M | 143.07M | 66.06M | EBIT |
| 9.14M | 7.42M | 63.36M | 79.67M | 141.88M | 54.34M | EBITDA |
| 14.05M | 18.80M | 67.55M | 81.39M | 143.59M | 56.25M | Net Income Common Stockholders |
| 11.06M | 6.98M | 45.35M | 56.15M | 99.81M | 41.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 77.52M | 97.84M | 125.96M | 122.31M | 107.02M | 56.50M | Total Assets |
| 258.56M | 257.57M | 269.76M | 279.44M | 273.58M | 162.72M | Total Debt |
| 669.59K | 928.24K | 711.56K | 83.99K | 283.61K | 451.49K | Net Debt |
| -76.85M | -96.92M | -123.45M | -121.20M | -105.85M | -55.43M | Total Liabilities |
| 33.84M | 32.08M | 30.39M | 28.75M | 29.63M | 22.17M | Stockholders Equity |
| 224.72M | 265.27M | 239.36M | 250.69M | 243.95M | 140.55M |
| Cash Flow | Free Cash Flow | ||||
| -7.81M | -1.11M | 48.50M | 53.21M | 60.72M | 52.61M | Operating Cash Flow |
| 18.31M | 14.70M | 62.99M | 69.61M | 68.24M | 58.02M | Investing Cash Flow |
| -35.17M | -15.69M | -15.57M | -17.17M | -7.59M | -5.71M | Financing Cash Flow |
| -12.54M | -25.99M | -40.78M | -32.75M | -21.96M | -11.67M |
Sylvania Platinum Technical Analysis
Positive
70.00
Price Trends
53.23
Positive
50.73
Positive
47.84
Positive
Market Momentum
5.45
Negative
77.29
Negative
86.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SLP, the sentiment is Positive. The current price of 70 is above the 20-day moving average (MA) of 61.00, above the 50-day MA of 53.23, and above the 200-day MA of 47.84, indicating a bullish trend. The MACD of 5.45 indicates Negative momentum. The RSI at 77.29 is Negative, neither overbought nor oversold. The STOCH value of 86.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SLP.
Sylvania Platinum Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Performance Comparison
GB:SLP
Sylvania Platinum
70.00
9.94
16.55%
GB:GEMD
Gem Diamonds
7.09
-5.56
-43.95%
GB:PDL
Petra Diamonds
16.05
-25.95
-61.79%
Sylvania Platinum Corporate Events
Business Operations and StrategyFinancial Disclosures
Sylvania Platinum Reports Increased PGM Production and Revenue in Q3 FY2025
Positive
Apr 30, 2025
Sylvania Platinum Limited reported a 1% increase in PGM production for the third quarter of FY2025, achieving 20,490 4E PGM ounces. The company saw a 2% rise in net revenue to $26.3 million, although EBITDA decreased by 4% due to increased indirect costs. The Thaba JV project is on track to begin chrome production in May and PGM production in June 2025, which will diversify the company’s revenue streams. The company also increased its FY2025 production guidance to 78,000 – 80,000 PGM ounces, reflecting strong operational performance. Sylvania maintains strong cash reserves, supporting its growth initiatives and capital expenditure projects.
Other
Sylvania Platinum Announces Change in Major Shareholder Voting Rights
Neutral
Apr 2, 2025
Sylvania Platinum Limited has announced a change in the voting rights held by BlackRock, Inc., a major shareholder. BlackRock’s voting rights in Sylvania Platinum have decreased from 5.07% to 4.87%, as of March 31, 2025. This change reflects a slight reduction in BlackRock’s stake in the company, which could have implications for the company’s shareholder dynamics and influence on corporate decisions.
Business Operations and Strategy
Sylvania Platinum Appoints Berenberg as Joint Broker and Financial Adviser
Positive
Mar 27, 2025
Sylvania Platinum Limited has appointed Joh. Berenberg, Gossler & Co KG, London as a Joint Broker and Financial Adviser, effective from March 26, 2025. This strategic move is expected to enhance the company’s financial advisory capabilities and strengthen its market position alongside its current Nominated Adviser and Broker, Panmure Liberum Limited.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.