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 Lewanne Carminati CFO
+27 11 673 1171
Nominated Adviser and JointBroker
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 BlytheRay Tim Blythe / Megan Ray
+44 (0) 20 7138 3204 Sylvania@BlytheRay.com
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
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/
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 Recovery1
%
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 Price2
$/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 Expenditure4
$'000
6,143
8,557
39%
R'000
113,717
156,508
38%
Cash Balance5
$'000
71,223
60,893
-15%
R'000
1,310,503
1,074,153
-18%
Ave R/$ 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 oz6
$/oz
761
676
-11%
R/oz
14,087
12,354
-12%
SDO Cash Cost per 6E PGM oz6
$/oz
592
529
-11%
R/oz
10,951
9,677
-12%
Group Cash Cost Per 4E PGM oz6
$/oz
921
840
-9%
R/oz
17,049
15,364
-10%
Group Cash Cost Per 6E PGM oz6
$/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
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
TheCompany 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
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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