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Sylvania Platinum (GB:SLP)
:SLP
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Sylvania Platinum (SLP) AI Stock Analysis

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GB:SLP

Sylvania Platinum

(LSE:SLP)

Rating:79Outperform
Price Target:
86.00p
▲(10.54% Upside)
Sylvania Platinum's robust corporate events and strong technical signals are the key drivers of its high score. While financial performance is stable, challenges in cash flow and declining revenue highlight potential risks. Valuation remains moderate, contributing to a balanced outlook.

Sylvania Platinum (SLP) vs. iShares MSCI United Kingdom ETF (EWC)

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: |
Next Earnings Date:Sep 09, 2025
Earnings Call Sentiment Positive
The earnings call reflects a cautiously optimistic sentiment with significant revenue growth and strategic project developments offsetting increased operational costs and market challenges. The company shows resilience and commitment to shareholder value through dividends and share buybacks.
Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
The company posted $47.6 million in net revenue, a 17% increase compared to the previous year, and an EBITDA increase of 36% to $9 million. Production improved by 3% to 39,840 ounces, ranking among the top three half-year performances for the company.
Thaba JV Project Progress
The Thaba joint venture is on schedule, expecting first production by April-May 2025. It will contribute 6,800 ounces of PGMs and 210,000 tons of chromite annually, adding significant diversification and revenue potential.
Dividend and Share Buyback Commitment
Despite a challenging market, the company declared an interim dividend of $0.75 per ordinary share and conducted share buybacks, demonstrating a commitment to returning value to shareholders.
Operational Stability Achievements
Concluded a two-year wage deal and reported no Eskom-related load curtailment since March 24th, with higher-grade current risings enhancing production at Lesedi.
Positive Market Outlook
6% improvement in the PGM basket price and optimistic demand forecasts for rhodium and palladium due to hybrid vehicle growth, predicting a market deficit in 2025.
Negative Updates
Increased Operating Costs
Cost of sales increased by 18% due to higher labor, power, and consumable costs, along with costs related to acquiring third-party material.
Challenges at Mooinooi and Lesedi
Mooinooi faced hydro-mining challenges and rain-related issues, while Lesedi had a 24-day strategic stoppage for optimization.
Chrome Market Fluctuations
Chrome prices experienced a sharp drop due to increased production from Chinese smelters, affecting revenue forecasts.
Exploration Project Uncertainties
Hacra project identified as misaligned with company goals, with disposal options being evaluated, indicating potential challenges in exploration value realization.
Company Guidance
During the Sylvania Platinum Limited call, the company provided guidance on their operations and financial performance for the fiscal year. For the first half of the fiscal year 2025, Sylvania Platinum reported a production of 39,840 ounces, a 3% increase from the previous year, and a net revenue of $47.6 million, marking a 17% rise. The company's EBITDA also increased by 36% to $9 million. Sylvania Platinum announced an interim dividend of $0.75 per ordinary share despite a challenging market environment. Looking forward, the company adjusted its production guidance for the year to between 75,000 and 78,000 ounces. The company also highlighted the progress of the Thaba joint venture, expected to begin production in April-May 2025, and its potential to contribute significantly to future revenue streams. The company maintained a strong balance sheet with no debt and emphasized its commitment to returning value to shareholders through dividends and share buybacks.

Sylvania Platinum Financial Statement Overview

Summary
Sylvania Platinum shows a strong balance sheet with low debt and high equity ratio. However, declining revenues and negative free cash flow point towards potential financial challenges.
Income Statement
75
Positive
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.
Balance Sheet
80
Positive
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.
Cash Flow
65
Positive
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.
BreakdownTTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue88.50M81.71M130.20M151.94M206.11M114.09M
Gross Profit13.36M12.68M64.00M83.20M143.07M66.06M
EBITDA14.05M18.80M67.55M81.39M143.59M56.25M
Net Income11.06M6.98M45.35M56.15M99.81M41.00M
Balance Sheet
Total Assets258.56M257.57M269.76M279.44M273.58M162.72M
Cash, Cash Equivalents and Short-Term Investments77.52M97.84M125.96M122.31M107.02M56.50M
Total Debt669.59K928.24K711.56K83.99K283.61K451.49K
Total Liabilities33.84M32.08M30.39M28.75M29.63M22.17M
Stockholders Equity224.72M265.27M239.36M250.69M243.95M140.55M
Cash Flow
Free Cash Flow-7.81M-1.11M48.50M53.21M60.72M52.61M
Operating Cash Flow18.31M14.70M62.99M69.61M68.24M58.02M
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

Technical Analysis Sentiment
Positive
Last Price77.80
Price Trends
50DMA
73.16
Positive
100DMA
64.62
Positive
200DMA
55.15
Positive
Market Momentum
MACD
1.35
Negative
RSI
55.81
Neutral
STOCH
78.61
Neutral
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 77.8 is above the 20-day moving average (MA) of 75.96, above the 50-day MA of 73.16, and above the 200-day MA of 55.15, indicating a bullish trend. The MACD of 1.35 indicates Negative momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 78.61 is Neutral, 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
£202.37M23.584.80%3.53%-5.61%-31.96%
62
Neutral
$10.28B6.210.76%2.84%3.10%-36.03%
£21.69M-9.47%
66
Neutral
£4.76M2.132.04%6.94%
41
Neutral
£118.06M-33.13%220.69%-21.05%
£448.76M-43.48%
40
Neutral
£36.95M-35.25%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SLP
Sylvania Platinum
77.60
25.15
47.95%
GB:UFO
Alien Metals Ltd
0.26
0.14
116.67%
GB:EUA
Eurasia Mining
4.00
1.70
73.91%
GB:GEMD
Gem Diamonds
3.15
-9.53
-75.16%
GB:EEE
Empire Metals
69.00
61.74
850.41%
GB:PDL
Petra Diamonds
18.60
-7.70
-29.28%

Sylvania Platinum Corporate Events

Business Operations and StrategyFinancial Disclosures
Sylvania Platinum Achieves Record Production and Strong Financial Performance in Q4 FY2025
Positive
Jul 29, 2025

Sylvania Platinum Limited reported a strong performance for the fourth quarter ending June 2025, with a 3% increase in 4E PGM ounces and a record annual production of 81,002 4E PGM ounces. The company’s net revenue rose by 15% quarter-on-quarter, and EBITDA nearly doubled, reflecting higher production and increased PGM prices. The Thaba Joint Venture project commenced commissioning and is expected to ramp up significantly, contributing to future revenue. The company also achieved its best safety performance in history, with significant milestones in injury-free operations, demonstrating its commitment to safety and operational excellence.

The most recent analyst rating on (GB:SLP) stock is a Buy with a £85.00 price target. To see the full list of analyst forecasts on Sylvania Platinum stock, see the GB:SLP Stock Forecast page.

Business Operations and Strategy
Sylvania Platinum Announces Change in Major Holdings
Neutral
Jul 10, 2025

Sylvania Platinum Limited has announced a change in its major holdings, with BlackRock, Inc. reducing its voting rights from 4.87% to 3.99%. This adjustment in BlackRock’s stake could influence the company’s shareholder dynamics and potentially impact its strategic decisions. The notification highlights a shift in the ownership structure, which stakeholders might need to consider in their future engagements with the company.

The most recent analyst rating on (GB:SLP) stock is a Buy with a £85.00 price target. To see the full list of analyst forecasts on Sylvania Platinum stock, see the GB:SLP Stock Forecast page.

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.Date of analysis: Jul 29, 2025