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RNS Number : 8892S Sylvania Platinum Limited 29 July 2025
29 July 2025
Sylvania Platinum Limited
("Sylvania", the "Company" or the "Group")
Fourth Quarter Report to 30 June 2025
Sylvania (AIM: SLP), the platinum group metals ("PGM") producer and developer with assets in South Africa, announces its results for the three months ended 30 June 2025 (the "Quarter" or the "Period" or "Q4 FY2025"). 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 21,114 4E (26,954 6E) PGM ounces in
Q4 FY2025, a 3% increase in 4E PGM ounces for the Quarter (Q3 FY2025: 20,490
4E (26,358 6E) PGM ounces);
* Annual production exceeded guidance, which saw a new record annual production
of 81,002 4E (104,233 6E) PGM ounces for FY2025;
* SDO recorded $30.3 million net revenue for the Quarter, a 15% increase
quarter-on-quarter (Q3 FY2025: $26.3 million);
* Group EBITDA of $12.9 million, a 98% increase for the Quarter (Q3 FY2025: $6.5
million);
* Cash balance as at 30 June 2025 of $60.9 million (31 March 2025: $71.2
million), which is in line with expectations;
* Improved current arising stream and the stable performance achieved by Lesedi
has seen the withdrawal of the Section 189A ("S189A") of the Labour Relations
Act, 66 of 1995 ("LRA") consultation process that was initiated in July 2024;
* Thaba Joint Venture ("Thaba JV") commissioning commenced during the Quarter
and continues to ramp up over Q1 FY2026;
* The Company achieved the best overall safety performance in its history in
FY2025, with the least total injuries; and
* Doornbosch operation achieved 13 years Lost-Time Injury ("LTI")-free, as well
as achieving four years total injury free during the Quarter. The Eastern
Operations achieved one full year injury-free.
Outlook
* SDO are expected to continue their strong performance in Q1 FY2026;
* A steady improvement has been realised on the current arisings from the host
mine's new run of mine ("ROM") plant at Lesedi, and the ramp-up is on track
with the crushing plant now operational and expected to be at steady state
towards Q2 FY2026;
* Whilst the Thaba JV project experienced some technical delays and teething
issues during the Period, owing in part to weather conditions and
safety-related interruptions, commissioning has already begun to ramp-up
significantly post-Period end. The Company anticipates achieving steady-state
production during Q2 FY2026;
* Construction of the centralised PGM filtration plant is on budget and on
schedule for completion during Q2 FY2026; and
* The Group continues to maintain strong cash reserves, enabling it to balance
the requirements of capital expenditure projects and to support growth
initiatives with the potential to return value to shareholders.
Commenting on the results, Sylvania's CEO, Jaco Prinsloo, said:
"The Company ended FY2025 with another strong quarterly production
performance, achieving 21,114 4E PGM ounces from the SDO during the Period, a
3% increase on Q3 FY2025, bringing the total annual production to 81,002 4E
PGM ounces, which is a new record. Additionally, the average 4E gross basket
price increased by 14% in USD terms and 12% in South African Rand ("ZAR")
terms, which, alongside the increase in production ounces, saw an improved 4E
revenue performance (up 17% in USD terms and 15% in ZAR terms) compared to Q3
FY2025.
"Group EBITDA for the Quarter rose to $12.9 million (Q3 FY2025 $6.5 million),
which is a substantial 98% increase quarter-on-quarter. The increase is mainly
due to higher production and the increased PGM basket price during the Period.
"I'm pleased with progress on the commissioning of the Thaba JV project, which
has commenced and is expected to continue ramping up throughout Q1 FY2026,
with steady-state production anticipated in Q2 FY2026. While the project has
had slower initial commissioning ramp-up than originally anticipated, partly
relating to construction delays, heavy rains earlier in the year, and a
safety-related incident which temporarily suspended electrical work,
commissioning has already begun to ramp up significantly post-Period end, and
the project remains on track to become a significant revenue booster for the
Company as it reaches full operational capacity.
"I am happy to report that owing to the improved current arising stream and
the stable performance achieved by Lesedi, a decision was taken during Q4
FY2025 to withdraw the S189A, however, the focus will remain on further
improving efficiencies as host-mine current arisings stabilise during H1
FY2026.
"We achieved our best overall safety performance in Sylvania's history with
regards to total injuries, which includes the significant milestones of
Doornbosch achieving 13 years LTI-free and four years total-injury free during
the Quarter, and the combined Eastern Operations achieving one full year
injury-free. This again demonstrates the Company's commitment towards
achieving the goal of Zero Harm across the Group."
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
Joint Broker
Joh. Berenberg, Gossler & Co KG, London +44 (0) 20 3207 7800
Jennifer Lee
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) 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. The
Thaba Joint Venture ("Thaba JV"), which comprises chrome beneficiation and PGM
processing plants, and is currently being commissioned and will treat 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 Q3 FY2025 Q4 FY2025 % Change
Plant Feed T 622,298 673,909 8%
Feed Head Grade g/t 2.17 2.19 1%
PGM Plant Feed Tons T 329,368 344,441 5%
PGM Plant Feed Grade g/t 3.50 3.71 6%
PGM Plant Recovery(1) % 55.34% 55.24% 0%
Total 4E PGMs Oz 20,490 21,114 3%
Total 6E PGMs Oz 26,358 26,954 2%
Unaudited USD ZAR
Unit Q3 FY2025 Q4 FY2025 % Change Unit Q3 FY2025 Q4 FY2025 % Change
Financials (3)
Average 4E Gross Basket Price(2) $/oz 1,428 1,622 14% R/oz 26,441 29,667 12%
Revenue (4E) $'000 20,552 24,001 17% R'000 380,410 438,978 15%
Revenue (by-products including base metals) $'000 3,445 3,666 6% R'000 63,776 67,060 5%
Sales adjustments $'000 2,273 2,618 15% R'000 42,073 47,873 14%
Net revenue $'000 26,270 30,285 15% R'000 486,259 553,911 14%
Direct Operating costs $'000 15,594 14,261 -9% R'000 288,641 260,842 -10%
Indirect Operating costs $'000 3,414 2,591 -24% R'000 63,198 47,386 -25%
General and Administrative costs $'000 488 692 42% R'000 9,034 12,657 40%
Group EBITDA $'000 6,501 12,863 98% R'000 120,344 235,264 95%
Net Profit $'000 5,436 9,759 80% R'000 100,629 178,492 77%
Capital Expenditure(4) $'000 6,143 8,557 39% R'000 113,717 156,508 38%
Cash Balance(5) $'000 71,223 60,893 -15% R'000 1,310,503 1,074,153 -18%
Ave R/$ rate R/$ 18.51 18.29 -1%
Spot R/$ rate R/$ 18.40 17.64 -4%
Unit Cost/Efficiencies
SDO Cash Cost per 4E PGM oz(6) $/oz 761 676 -11% R/oz 14,087 12,354 -12%
SDO Cash Cost per 6E PGM oz(6) $/oz 592 529 -11% R/oz 10,951 9,677 -12%
Group Cash Cost Per 4E PGM oz(6) $/oz 921 840 -9% R/oz 17,049 15,364 -10%
Group Cash Cost Per 6E PGM oz(6) $/oz 716 658 -8% R/oz 13,254 12,035 -9%
All-in Sustaining Cost (4E) $/oz 959 858 -11% R/oz 17,754 15,691 -12%
All-in Cost (4E) $/oz 1,273 1,245 -2% R/oz 23,290 22,766 -2%
( )
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 the
work-in-progress ounces when applicable.
2 The gross basket price in the table is the June 2025 gross 4E basket used
for revenue recognition of ounces delivered in Q4 FY2025, before
penalties/smelting costs and applying the contractual payability.
3 Revenue (6E) for Q4 FY2025, before adjustments is $27.5 million (6E prill
split is Pt 51%, Pd 18%, Rh 9%, 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 $3.3 million
(Q3 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.
A. OPERATIONAL OVERVIEW
Safety, health and environment ("SHE")
The Company continues to view SHE as a top priority and remains committed to
achieving the goal of Zero Harm at all its operations. During the Quarter,
Doornbosch achieved the significant milestone of 13 years LTI-free as well as
achieving four years total injury free, while the combined Eastern Operations
achieved one full year injury-free. This has contributed towards closing off
FY2025 as the best annual safety performance to date with regards to total
injuries.
Unfortunately, during the Quarter, one LTI was recorded at the Thaba JV
project, where an electrical contractor came into contact with live
electricity while working in a substation during construction. He is well on
his way to a full recovery from the incident and will return to work at the
site shortly.
Operational performance
The SDO declared 21,114 4E PGM ounces for the Quarter, representing a 3%
increase compared to Q3 FY2025. This improvement was driven by a 5% increase
in PGM plant feed tonnage compared to Q3 FY2025 and a 6% improvement on the
PGM feed grade compared to Q3 FY2025, while the PGM plant recovery and feed
head grade remained stable during the Period. An increase in work-in-progress
ounces that were produced but not delivered by 30 June 2025 amounted to
approximately 1,600 4E PGM ounces and impacted on the overall delivered ounces
increase, but these ounces have since been delivered in July
2025.
Operational efforts during the Period were focused on enhancing stability and
maximising plant run time through improved utilisation and the implementation
of preventative maintenance strategies, thereby ensuring high levels of plant
availability. Both the Eastern and Western operations performed well during
the Quarter, exceeding business plan ounces.
SDO operating cash costs per 4E PGM ounce decreased 12% in ZAR terms to
ZAR12,354/ounce and 11% in dollar terms, to $676/ounce (Q3 FY2025:
ZAR14,087/ounce and $761/ounce respectively), assisted by improved PGM ounce
production.
Operational opportunities and outlook
The column flotation cell at Millsell remains in its optimisation phase, but
has already demonstrated improved stability within the flotation circuit. Some
additional configurations are currently being trialled to enhance the quality
and payability of the PGM concentrate produced.
The construction of the centralised PGM filtration plant is progressing well,
with civils work complete. Additionally steel work and equipment installation
are well underway, and the project is on track to be completed during Q2
FY2026. This plant is required to enable dried PGM concentrate filter cake
deliveries to the off-take smelter instead of slurry material. It will also
enable improved concentrate blending that could potentially assist with
improved payability.
The host mine's Lesedi ROM plant was commissioned in October 2024, with a
steady-state ramp-up originally targeted for completion by the end of Q3
FY2025. However, the ramp-up was delayed due to adverse weather conditions
impacting the installation of critical equipment. The revised plan targeted a
ramp-up during Q4 FY2025, which has resulted in an increased throughput of
current arisings feed to the Lesedi operation. As a result of the improved
current arising stream and the stable performance achieved by Lesedi, a
decision was taken during Q4 FY2025 to withdraw the S189A of the LRA
consultation process, which was first initiated in July 2024, and operations
at Lesedi will now continue as normal.
At Lannex, ongoing work to optimise the milling and fines classification
circuit has advanced well, with all phases now complete. The recommendations
from the tests are currently being reviewed to determine what additional steps
need to be implemented to improve both chrome beneficiation and PGM recovery
efficiencies.
The Company is also prioritising initiatives to reduce mass pull across its
operations. Alternative technologies are currently being assessed and will be
tested on small-scale pilot trials to determine if this could be implemented
at the SDO to reduce mass pull without compromising current recovery levels.
B. FINANCIAL OVERVIEW
Financial performance
Revenue (4E) for the Quarter increased by 17% to $24.0 million (Q3 FY2025:
$20.6 million) as a result of the 3% increase in PGM ounces declared during
the Period and an increase in the 4E gross basket price for the Quarter of 14%
to $1,622/ounce ($1,428/ounce in Q3 FY2025). Net revenue, which includes
revenue from by-products, base metals, and the quarter-on-quarter sales
adjustment, increased by 15% to $30.3 million (Q3 FY2025: $26.3 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 ZAR17,049/ounce
to ZAR15,364/ounce and in USD terms from $921/ounce to $840/ounce in the
previous quarter as a result of the decrease in direct costs by 10% and 9% in
ZAR and USD terms respectively, as well as the increase in 4E production by
3%.
General and administrative costs increased by 42% to $0.70 million from $0.49
million in Q3 FY2025, mainly due to the increase in consulting, professional
fees, and corporate costs. These costs are incurred in USD, Pounds Sterling
("GBP") and ZAR.
Group EBITDA for the Quarter was $12.9 million (Q3 FY2025 $6.5 million), a 98%
increase quarter-on-quarter. The increase is mainly due to the 15% increase in
net revenue and the 9% decrease in the direct costs quarter-on-quarter. The
decrease in direct costs is due to less external material bought on an
adjusted price matrix during the Quarter as well as ounces produced in Q4
FY2025 to be delivered in Q1 FY2026. Similarly, the net profit increased to
$9.8 million in Q4 FY2025 from $5.4 million in Q3 FY2025.
The Group cash balance was $60.9 million in Q4 FY2025 (Q3 FY2025 $71.2
million) in line with expectations. Interest was earned on surplus cash
invested in both USD and ZAR, amounting to $0.6 million (ZAR10.2 million).
The cash outflow for Group capital increased to $7.8 million (Q3 FY2025 $5.5
million), comprising $3.6 million (Q3 FY2025: $2.9 million) on the
attributable capital on the Thaba JV, $3.5 million (Q3 FY2025: $2.1 million)
on stay in business and improvement capital and $0.1 million (Q3 FY2025: $0.1
million) on exploration projects. A further $3.6 million was contributed to
the Thaba JV project through the capital loan to the JV partner.
Lease payments for the rental of various equipment amounting to $0.1 million
were made during the Quarter. A further $0.2 million in cash was transferred
to a guarantee in favour of Eskom to secure power for future capital expansion
projects and accounted for as restricted cash.
Cash generated from operations before working capital movements was $13.0
million, with net changes in working capital of $5.8 million, mainly due to
the movement in trade receivables of $5.7 million. Cash inflows from the
increased basket price in Q4 FY2025 will only be realised over Q1 FY2026,
provided the basket price remains at the current level, due to the contractual
quotational period between delivery and invoicing. Provisional income tax of
$3.4 million was paid to the South-African Revenue Services for the year ended
30 June 2025, and an interim dividend of $2.5 million was paid on 4 April
2025.
C. JOINT VENTURES AND MINERAL ASSET DEVELOPMENT OF OPENCAST MINING PROJECTS
Thaba JV
The commissioning of the Thaba JV project has commenced and is expected to
continue ramping up throughout Q1 FY2026, with steady-state production
anticipated in Q2 FY2026. This project remains on track to become a
significant revenue booster for the Company as it reaches full operational
capacity. The project did experience some delays during the final construction
phase, specifically with piping, electrical, and control and instrumentation.
Additionally, the heavy rains earlier in the year impacted the timeline,
contributing to a slower initial commissioning ramp-up than originally
anticipated. Despite these challenges, commissioning has already begun to ramp
up significantly post-Period end.
Additionally, a safety-related incident where an electrical contractor
employee was injured, resulted in the suspension of all electrical work by the
regulatory authority (the Department of Mineral Resources and Energy), which
impacted the project by three weeks in June 2025.
Mineral Asset Development
The Group continues to improve its technical understanding of the three
approved PGM-base metal mining rights it holds on the Northern Limb of the
Bushveld Igneous Complex ("BIC") in South Africa. The information obtained
through both historic and ongoing technical studies continues to assist in
determining how best to turn these assets to account.
Volspruit Project
While research and development continues on potential opportunities to upgrade
the ROM feedstock for planned Volspruit material, the project focus has
largely shifted to obtaining regulatory permits and authorisations. Currently,
the Company is working alongside the Department for Mineral and Petroleum
Resources and the Department of Water and Sanitation in order to obtain
feedback on the Environmental Impact Assessment amendment and the Water Use
License application, respectively.
Far Northern Limb Projects
An orientation geochemical soil sampling campaign was completed over a portion
of the project area during the Quarter following on from the successful
completion of a geophysical survey earlier in the year. The results are
expected from the laboratory in HY1 FY2026. The aim of the geochemical survey
is to gain a better understanding of the poorly exposed geology within the
project area. This will continue to provide information for the definition of
future exploration programmes, including both soil sampling and potential
further drilling.
The Company continues to explore potential disposal options for the Hacra
asset as a result of Sylvania focusing its exploration activities on the
shallower mineralisation at its Volspruit and Aurora projects.
D. CORPORATE ACTIVITIES
Notice of Annual Results Investor Presentation
The Company confirms it will announce its Final Results for the year ended 30
June 2025 on Tuesday, 9 September 2025.
Sylvania's CEO, Jaco Prinsloo, and CFO, Lewanne Carminati, will host a live
investor presentation, via the Investor Meet Company platform, on 9 September
2025 at 16:00 BST.
The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event via your Investor Meet Company dashboard up until
9.00 BST the day before the meeting or at any time during the live
presentation.
Investors can sign up to Investor Meet Company for free and add to meet
Sylvania via:
https://www.investormeetcompany.com/sylvania-platinum-limited/register-investor
(https://www.investormeetcompany.com/sylvania-platinum-limited/register-investor)
Investors who already follow Sylvania on the Investor Meet Company platform
will automatically be invited.
ANNEXURE
GLOSSARY OF TERMS FY2025
The following definitions apply throughout the Period:
3E PGMs 3E ounces include the precious metal elements Platinum, Palladium and Gold
4E PGMs 4E PGM ounces include the precious metal elements Platinum, Palladium, Rhodium
and Gold
6E PGMs 6E ounces include the 4E elements plus additional Iridium and Ruthenium
AGM Annual General Meeting
AIM Alternative Investment Market of the London Stock Exchange
All-in cost All-in sustaining cost plus non-sustaining and expansion capital expenditure
All-in sustaining cost Production costs plus all costs relating to sustaining current production
and sustaining capital expenditure.
Attributable Resources or portion of investment belonging to the Company
BCM Bank cubic metres
CLOs Community Liaison Officers
Company The purely equity holding entity registered in Bermuda, Sylvania Platinum
Limited, with its entire share capital admitted on AIM.
DMRE Department of Mineral Resources and Energy
EBITDA Earnings before interest, tax, depreciation and amortisation
EA Environmental Authorisation
EAP Employee Assistance Program
EC&I Electrical, instrumentation and control
EDEP Employee Dividend Entitlement Programme
EEFs Employment Engagement Forums
EIA Environmental Impact Assessment
EIR Effective interest rate
EMPR Environmental Management Programme Report
ESG Environment, Social and Governance
GBP Pounds Sterling
GHG Greenhouse gases
GISTM Global Industry Standard on Tailings Management
GRI Global Reporting Initiative
Group The Company and its controlled entities.
IASB International Accounting Standards Board
ICE Internal combustion engine
ICMM International Council on Mining and Metals
IFRIC International Financial Reporting Interpretation Committee
IFRS International Financial Reporting Standards
Lesedi Phoenix Platinum Mining Proprietary Limited, renamed Sylvania Lesedi
LSE London Stock Exchange
LTI Lost-time injury
LTIFR Lost-time injury frequency rate
MF2 Milling and flotation technology
MPRDA Mineral and Petroleum Resources Development Act
MRA Mining Right Application
MRE Mineral Resource Estimate
Mt Million Tons
NUMSA National Union of Metals Workers of South Africa
NWA National Water Act 36 of 1998
PGM Platinum group metals comprising mainly platinum, palladium, rhodium, and gold
PDMR Person displaying management responsibility
PEA Preliminary Economic Assessment
PFS Preliminary Feasibility Study
Pipeline ounces 6E ounces delivered but not invoiced
Pipeline revenue Revenue recognised for ounces delivered, but not yet invoiced based on
contractual timelines
Pipeline sales adjustment Adjustments to pipeline revenues based on the basket price for the period
between delivery and invoicing
Project Echo Secondary PGM Milling and Flotation (MF2) program announced in FY2017 to
design and install additional new fine grinding mills and flotation circuits
at Millsell, Doornbosch, Tweefontein, Mooinooi and Lesedi
Revenue (by products) Revenue earned on Ruthenium, Iridium, Nickel and Copper
ROM Run of mine
SDO Sylvania dump operations
SI Serious Injury
SHE Safety, health and environmental
Silly Season The 'Silly Season' campaign is historically where a high number of accidents
at mines are reported during the last quarter of the calendar year. This
period is often challenging from a health and safety perspective and is
commonly known as 'Silly Season/ Critical Season'
Sylvania Sylvania Platinum Limited, a company incorporated in Bermuda
Sylvania Metals Sylvania Metals (Pty) Limited
TCFD Task Force on Climate-Related Financial Disclosures
tCO2e Tons of carbon dioxide equivalent
Thaba JV Thaba Joint Venture
TRIFR Total recordable injury frequency rate
TSF Tailings storage facility
UNSDGs United Nations Sustainability Development Goals
USD United States Dollar
WULA Water Use Licence Application
UK United Kingdom of Great Britain and Northern Ireland
VAT Value Added Tax
ZAR South African Rand
Zero Harm The South African mining industry is committed to the shared aspiration of
achieving the goal of Zero Harm, which aims to ensure that mineworkers return
home from work healthy and unharmed every day
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