REG - Sylvania Platinum - First Quarter Operations Report

Sylvania PlatinumAnnouncement

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RNS Number : 3737F  Sylvania Platinum Limited  30 October 2025

 

 

30 October 2025

 

Sylvania Platinum Limited

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

 

First Quarter Operations Report to 30 September 2025

 

Impressive start to FY2026

 

Sylvania (AIM: SLP), the platinum group metals ("PGM"), chrome producer and developer, with assets in South Africa, announces its production results for the three months ended 30 September 2025 (the "Quarter" or the "Period" or "Q1 FY2026"). Unless otherwise stated, the consolidated financial information contained in this report is presented in United States Dollars ("USD" or "$").

 

Highlights

·    Sylvania Dump Operations ("SDO") declared 24,522 4E (31,234 6E) PGM
ounces in Q1 FY2026, a 16% increase in 4E and 6E PGM ounces for the Quarter
(Q4 FY2025: 21,114 4E (26,954 6E) PGM ounces). This marks the highest
quarterly PGM production for the Group since inception;

·     Construction of the centralised PGM filtration Plant is on budget
and on schedule for completion during Q2 FY2026;

·      Thaba Joint Venture ("Thaba JV") commissioning completed during
the Period;

·      First chrome and PGM concentrate products from Thaba JV have been
dispatched post Period-end;

·      The SDO and Thaba JV were Lost-Time Injury ("LTI")-free during
the Quarter;

·     SDO recorded $45.1 million net revenue for the Quarter, a 49%
increase quarter-on-quarter (Q4 FY2025: $30.3 million);

·      Group EBITDA of $22.0 million, a 71% increase for the Quarter (Q4
FY2025: $12.9 million); and

·     Following an impressive quarter, guidance for FY2026 remains
unchanged at 83,000 to 86,000 4E PGM ounces with chromite concentrate target
of 100,000 to 130,000 tons.

 

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

 

"The Company had an impressive start to FY2026 with quarterly production
recording 24,522 4E PGM ounces from the SDO during the Period, a 16% increase
on Q4 FY2025. The average 4E gross basket price increased by 20% in USD terms
and 16% in South African Rand ("ZAR") terms, which, alongside the increase in
production ounces, saw an improved 4E revenue performance (up 46% in USD terms
and 41% in ZAR terms) compared to Q4 FY2025.

 

"Group EBITDA for the Quarter from SDO rose to $22.0 million (Q4 FY2025 $12.9
million), which is a significant 71% increase quarter-on-quarter. The increase
is mainly due to higher production and the increased PGM basket price during
the Period.

 

"The commissioning of the Thaba JV project was completed during Q1 FY2026 and
is continuing to ramp-up, with steady-state production expected in Q3 FY2026
as announced previously. First chrome and PGM production were achieved during
the Period, and products were dispatched, post Period-end.

 

"In the interests of improving reporting efficiencies, we have streamlined the
Quarterly reporting format to focus primarily on key operational and financial
highlights. This will be supplemented by the Company's regular interim and
full year reports that will provide in-depth details on all Company
developments and corporate information.''

 

 

 

CONTACT DETAILS

 

 For further information, please contact:
 Jaco Prinsloo CEO                            +27 11 673 1171

 Lewanne Carminati CFO

 Nominated Adviser and Joint Broker
 Panmure Liberum Limited                      +44 (0) 20 3100 2000
 Scott Mathieson / John More / Gaya Bhatt

 Joint Broker
 Joh. Berenberg, Gossler & Co KG, London      +44 (0) 20 3207 7800
 Jennifer Lee / Ivan Briechle

 Communications                               +44 (0) 20 7138 3204

 BlytheRay                                    sylvania@blytheray.com

 Tim Blythe / Megan Ray

 

 

CORPORATE INFORMATION

 

 Registered and postal address:  Sylvania Platinum Limited
                                 Clarendon House
                                 2 Church Street
                                 Hamilton HM 11
                                 Bermuda

 SA Operations postal address:   PO Box 976
                                 Florida Hills, 1716
                                 South Africa

Sylvania Website: www.sylvaniaplatinum.com (http://www.sylvaniaplatinum.com)

 

 

 

About Sylvania Platinum Limited

Sylvania Platinum is a lower-cost producer of platinum group metals ("PGMs")
(platinum, palladium and rhodium) and chrome with Operations located in South
Africa. The Sylvania Dump Operations ("SDO") is comprised of six chrome
beneficiation and PGM processing Plants focusing on the retreatment of
PGM-rich chrome tailings materials from mines in the Bushveld Igneous Complex
("BIC"). The SDO is the largest PGM producer from chrome tailings re-treatment
in the industry. In FY2023, the Company entered into the Thaba Joint Venture
("Thaba JV") which comprises chrome beneficiation and PGM processing Plants,
and is treating a combination of run of mine ("ROM") and historical chrome
tailings from the JV partner, adding a full margin chromite concentrate
revenue stream. The Group also holds mining rights for PGM projects in the
Northern Limb of the BIC.

 

 

For more information visit https://www.sylvaniaplatinum.com/
(https://www.sylvaniaplatinum.com/)

 

 

Operational and Financial Summary

 Production                              Unit  Q4 FY2025  Q1 FY2026  % Change
 Plant Feed                              T     673,909    611,458    -9%
 Feed Head Grade                         g/t   2.19       2.42       11%
 PGM Plant Feed Tons                     T     344,441    339,838    -1%
 PGM Plant Feed Grade                    g/t   3.71       3.82       3%
 PGM Plant Recovery(1)                   %     55.24%     58.49%     6%
 Total 4E PGMs                           Oz    21,114     24,522     16%
 Total 6E PGMs                           Oz    26,954     31,234     16%

 

 Unaudited                                           USD                                      ZAR
                                              Unit   Q4 FY2025  Q1 FY2026  % Change  Unit     Q4 FY2025  Q1 FY2026  % Change
 Financials (3)
 Average 4E Gross Basket Price(2)             $/oz   1,622      1,953      20%         R/oz   29,667     34,452     16%
 Revenue (4E)                                 $'000  24,001     35,009     46%       R'000    438,978    617,564    41%
 Revenue (by-products including base metals)  $'000  3,666      5,472      49%       R'000    67,060     96,527     44%
 Sales adjustments                            $'000  2,618      4,654      78%       R'000    47,873     82,084     71%
 Net revenue                                  $'000  30,285     45,135     49%       R'000    553,911    796,175    44%

 Direct Operating costs                       $'000  14,261     17,218     21%       R'000    260,842    303,722    16%
 Indirect Operating costs                     $'000  2,591      5,019      94%       R'000    47,386     88,528     87%
 General and Administrative costs             $'000  692        767        11%       R'000    12,657     13,530     7%
 Group EBITDA                                 $'000  12,863     21,998     71%       R'000    235,264    388,045    65%
 Net Profit                                   $'000  9,759      16,998     74%       R'000    178,492    299,845    68%

 Capital Expenditure(4)                       $'000  8,557      8,437      -1%       R'000    156,508    148,829    -5%

 Cash Balance(5)                              $'000  60,893     62,654     3%        R'000    1,074,153  1,079,528  1%

 Ave R/$ rate                                                                        R/$      18.29      17.64      -4%
 Spot R/$ rate                                                                       R/$      17.64      17.23      -2%
 Unit Cost/Efficiencies
 SDO Cash Cost per 4E PGM oz(6)               $/oz   676        702        4%        R/oz     12,354     12,386     0%
 SDO Cash Cost per 6E PGM oz(6)               $/oz   529        551        4%        R/oz     9,677      9,724      0%
 Group Cash Cost Per 4E PGM oz(6)             $/oz   840        863        3%        R/oz     15,364     15,223     -1%
 Group Cash Cost Per 6E PGM oz(6)             $/oz   658        678        3%        R/oz     12,035     11,960     -1%
 All-in Sustaining Cost (4E)                  $/oz   858        1,119      30%       R/oz     15,691     19,731     26%
 All-in Cost (4E)                             $/oz   1,245      1,493      20%       R/oz     22,766     26,343     16%

The Sylvania cash generating subsidiaries are incorporated in South Africa
with the functional currency of these operations being ZAR. Revenues from the
sale of PGMs are received in USD and then converted into ZAR. The Group's
reporting currency is USD as the parent company is incorporated in Bermuda.
Corporate and general and administration costs are incurred in USD, GBP and
ZAR.

 

1  PGM plant recovery is calculated on the production ounces that include
1,550 4E PGM ounces work-in-progress for Q1 FY2026.

2  The gross basket price in the table is the September 2025 gross 4E basket
used for revenue recognition of ounces delivered in Q1 FY2026, before
penalties/smelting costs and applying the contractual payability.

3  Revenue (6E) for Q1 FY2026, before adjustments is $40.2 million (6E prill
split is Pt 50%, Pd 18%, Rh 10%, Au 0%, Ru 17%, Ir 5%). Revenue excludes
profit/loss on foreign exchange.

4  The capital expenditure includes 50% attributable capital cost incurred
for the Thaba JV.

5  The cash balance excludes restricted cash held as guarantees $3.4 million
(Q4 FY2025 $3.3 million).

6  The cash costs include operating costs and exclude indirect costs for
example Mineral Royalty Tax and Employee Dividend Entitlement Plan ("EDEP")
payments.

OPERATIONAL AND FINANCIAL OVERVIEW

 

Operational performance

The SDO delivered 24,522 4E PGM ounces for the Quarter ended 30 September
2025, representing a 16% increase compared to Q4 FY2025. This marks the
highest quarterly PGM production for the Group since inception.

 

The improved performance was underpinned by the 3% increase in PGM feed grade
and a 6% enhancement in PGM plant recoveries, while PGM feed tons were
marginally lower by 1%, all measured against Q4 FY2025.

 

At the end of the Quarter, approximately 1,550 4E PGM ounces and 4,545 chrome
tons remained in work-in-progress. These PGM ounces and chrome tons were
produced, but not yet delivered by 30 September 2025, and were dispatched post
Period-end.

 

Operationally, the focus during the Period remained on reducing mass pull
while improving concentrate quality and grade. Continued emphasis on plant
stability contributed positively to the recovery improvements achieved across
the operations. The strong performance by the Eastern and Western Operations
continued into Q1 FY2026 with both regions exceeding their respective business
plan ounce targets for the Quarter.

 

SDO operating cash costs remained stable in ZAR terms at ZAR12,386 per 4E
ounce (Q4 FY2025: ZAR12,354/oz), and increased 4% in USD terms to $702 per
ounce (Q4 FY2025: $676/oz). The USD cost increase was largely driven by a
weaker USD exchange rate against the South African Rand, partially offset by
the higher PGM production volumes achieved during the Quarter.

 

Thaba JV

The commissioning of the Thaba JV project was completed during Q1 of FY2026
and production ramp-up commenced and is currently in progress. As announced
previously, an updated production ramp-up schedule was included in the FY2026
Business Plan and the project is expected to reach full operational capacity
by Q3 FY2026.

 

The first chrome and PGM concentrate products were dispatched post Period-end.

 

Financial performance

Revenue (4E) for the Quarter increased by 46% to $35.0 million (Q4 FY2025:
$24.0 million) as a result of the 16% increase in PGM ounces declared during
the Period and an increase in the 4E gross basket price for the Quarter of 20%
to $1,953/ounce ($1,622/ounce in Q4 FY2025). Net revenue, which includes
revenue from by-products, base metals, and the quarter-on-quarter sales
adjustment, increased by 49% to $45.1 million (Q4 FY2025: $30.3 million). Net
revenue includes attributable revenue received for ounces produced from
material purchased from third parties.

 

Group cash costs per 4E PGM ounce decreased in ZAR terms from ZAR15,364/ounce
to ZAR15,223/ounce and increased in USD terms from $840/ounce to $863/ounce in
the previous quarter as a result of the 16% increase in ounce production,
off-set in USD terms by the weaker exchange rate against the South African
ZAR.

 

General and administrative costs increased by $0.07 million to $0.77 million
from $0.70 million in Q4 FY2025. These costs are incurred in USD, Pounds
Sterling ("GBP") and ZAR.

 

Indirect operating costs increased by 94% to $5.0 million (Q4 FY2025: $2.6
million) due to a higher Mineral Royalty Tax provision in Q1 FY2026 as a
result of the increased revenue and lower deductible capital available during
Q1 FY2026 compared to Q4 FY2025.

 

All in sustaining costs increased by 30% due to the increase in both direct
costs and indirect costs. The main contributors to the increase were the
increase in external material purchased to capitalise on better material grade
and higher electricity consumption at Operations and the Mineral Royalty Tax.

 

Group EBITDA for the Quarter was $22.0 million (Q4 FY2025 $12.9 million), a
71% increase quarter-on-quarter. The increase is mainly due to the 49%
increase in net revenue as a result of the 20% increase in 4E average basket
price and 16% increase in both 4E and 6E ounces produces, off-set marginally
by the 21% increase in direct cost.

 

The Group cash balance increased quarter-on-quarter by 3% to $62.7 million (Q4
FY2025 $60.9 million). Net cash outflow for tax obligations during the quarter
amounted to $1.2 million, $1.7 million payment relating to an adjustment for
the second provisional tax FY2025 and $0.5 million refund relating to the
final FY2024 income tax. Surplus cash invested in both ZAR and USD earned
interest income amounting to $0.6 million.

 

Cash outflow for Group capital amounted to $8.1 million (Q4 FY2025 $7.8
million), comprising $4.3 million attributable capital on the Thaba JV, $3.7
million on stay in business and improvement capital and $0.1 million on
exploration projects. A further $4.3 million was contributed to the Thaba JV
project through the loan to the JV partner.

 

At a corporate level, a total of 665,447 shares were bought back from
employees and for tax purposes on vested shares respectively, amounting to
$0.7 million.

 

Cash generated from operations before working capital movements was $22.2
million, with net changes in working capital of $7.6 million mainly due to the
movement in trade receivables of $8.1 million and in trade payable of $2.2
million.

 

The impact of exchange rate fluctuations amounted to $0.8 million profit due
to the net appreciation of the ZAR to the USD during and at the end of Q1
FY2026.

 

 

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