REG - Sylvania Platinum - Second Quarter Report to 31 December 2025

Sylvania PlatinumAnnouncement

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RNS Number : 4338Q  Sylvania Platinum Limited  27 January 2026

 

 

 

 

 

 

 

27 January 2026

 

Sylvania Platinum Limited

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

 

Second Quarter Operations Report to 31 December 2025

 

Record Production Maintained

 

Sylvania (AIM: SLP), the platinum group metals ("PGM") and chrome producer and developer, with assets in South Africa, announces its production results for the three months ended 31 December 2025 (the "Quarter", the "Period" or "Q2 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 24,642 4E (31,380 6E) PGM
ounces in Q2 FY2026, a marginal increase in both 4E and 6E PGM production
ounces quarter-on-quarter (Q1 FY2026: 24,522 4E (31,234 6E) PGM ounces),
surpassing the previous records achieved in the last quarter;

·   Construction of the centralised PGM Filtration Plant was completed
during Q2 FY2026 and is fully operational; the successful commissioning marks
a major operational milestone that ensures consistent delivery of high-quality
concentrate;

·     First Chrome and PGM concentrate products from the Thaba Joint
Venture ("Thaba JV") were dispatched during the Period;

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

·      Mooinooi achieved one-year total injury free during the Period;

·     SDO recorded $54.8 million net revenue for the Quarter, a 21%
increase quarter-on-quarter (Q1 FY2026: $45.1 million);

·      Adjusted Group EBITDA of $29.8 million, a 35% increase for the
Quarter (Q1 FY2026: $22.0 million);

·      Environmental, Social and Governance ("ESG") Report for FY2025
released;

·      Final dividend of 2 pence per share for FY2025 was paid on 5
December 2025, amounting to $6.8 million; and

·   Following a consecutive impressive quarter by SDO, PGM production
guidance for FY2026 has been revised up to 90,000 - 93,000 4E PGM ounces from
initial guidance of 83,000 to 86,000 4E PGM ounces, with chrome concentrate
target of 60,000 - 90,000 tons adjusted lower in line with Thaba JV ramp-up
progress.

 

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

 

"I am pleased to report that the Company had another impressive quarter,
achieving a new record production figure of 24,642 4E PGM ounces, a marginal
increase above the record achieved in Q1 FY2026. The average 4E gross basket
price increased by 22% in USD and 18% in Rand ("ZAR") terms, and this together
with the marginal contribution from attributable Chrome sales to revenue of
$0.6 million, resulted in an improved net revenue performance of $54.8 million
(Q1 FY2026 $45.1 million).

 

"The adjusted Group EBITDA for the Quarter rose to $29.8 million (Q1 FY2026
$22.0 million) which is a significant 35% increase quarter-on-quarter, and
similarly to revenue, arose as a result of the increased gross 4E basket price
and Chrome sales contribution.

 

"The successful commissioning of the centralised PGM Filtration Plant during
the Period is a significant milestone which ensures that the requisite quality
of concentrate is delivered to the smelter. While the Thaba JV ramp-up was
slightly lower than anticipated, first Chrome and PGM concentrate products
were successfully dispatched from the operation during the Period,
representing an important stage in the operational ramp-up.

 

"As always, safety is a top priority for the Company and I wish to
congratulate the Mooinooi team on the achievement of one-year total injury
free during the Period.

 

"It is encouraging that we have managed to maintain the positive momentum on
SDO from the previous quarter, enabling us to increase our annual PGM
production guidance range for FY2026 to 90,000 - 93,000 4E PGM ounces. While
Thaba JV ramp-up is progressing well, it was initially slower than anticipated
and the chrome concentrate target for the year is adjusted lower to 60,000 -
90,000 tons.

 

"Despite the slower production ramp-up of the Thaba JV project, the Project
remains on track to become a significant revenue contributor for the Company
once it reaches full operational capacity and the investment fundamentals
remain robust.

 

"These results support our long-term confidence at the SDO and Thaba project,
and we look forward to releasing Sylvania's interim financial results on
Tuesday, 24 February 2026, when I, along with our newly appointed Group CFO,
Ronel Bosman, will be hosting investor webinars and shareholder meetings over
the course of the week of the release. Once again, we look forward to engaging
with our valued stakeholders during this time."

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse regulation
(EU) no.596/2014 as amended by the Market Abuse (Amendment) (EU Exit)
Regulations 2019.

 

 

CONTACT DETAILS

 

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

 Ronel Bosman 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

 BlytheRay                                    +44 (0) 20 7138 3204

 Tim Blythe / Megan Ray                       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 (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 chrome 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  Q1 FY2026  Q2 FY2026  % Change
 Plant Feed                              T     611,458    637,771    4%
 Feed Head Grade                         g/t   2.42       2.34       -3%
 PGM Plant Feed Tons                     T     339,838    369,071    9%
 PGM Plant Feed Grade                    g/t   3.82       3.61       -5%
 PGM Plant Recovery(1)                   %     58.49%     57.55%     -2%
 Total 4E PGMs                           Oz    24,522     24,642     0%
 Total 6E PGMs                           Oz    31,234     31,380     0%

 

 Unaudited                                           USD                                      ZAR
                                              Unit   Q1 FY2026  Q2 FY2026  % Change  Unit     Q1 FY2026  Q2 FY2026  % Change
 Financials (3)
 Average 4E Gross Basket Price(2)             $/oz   1,953      2,374      22%         R/oz   34,452     40,643     18%
 Revenue (4E)                                 $'000  35,009     43,636     25%       R'000    617,564    746,910    21%
 Revenue (by-products including base metals)  $'000  5,472      5,299      -3%       R'000    96,527     90,698     -6%
 Sales adjustments                            $'000  4,654      5,252      13%       R'000    82,084     89,901     10%
 Chrome Revenue                               $'000  -          649        100%      R'000    -          11,103     100%
 Net revenue                                  $'000  45,135     54,836     21%       R'000    796,175    938,612    18%

 Direct Operating costs                       $'000  17,218     18,873     10%       R'000    303,722    323,055    6%
 Indirect Operating costs                     $'000  5,019      6,106      22%       R'000    88,528     104,508    18%
 General and Administrative costs             $'000  767        827        8%        R'000    13,530     14,158     5%
 Adjusted Group EBITDA                        $'000  21,998     29,803     35%       R'000    388,045    510,227    31%
 Adjusted Net Profit                          $'000  16,998     21,894     29%       R'000    299,845    374,825    25%

 Capital Expenditure(4)                       $'000  8,437      7,347      -13%      R'000    148,829    125,781    -15%

 Cash Balance(5)                              $'000  62,654     53,956     -14%      R'000    1,079,528  894,590    -17%

 Ave R/$ rate                                                                        R/$      17.64      17.12      -3%
 Spot R/$ rate                                                                       R/$      17.23      16.58      -4%
 Unit Cost/Efficiencies
 Cash Cost per 4E PGM oz(6)                   $/oz   702        747        6%        R/oz     12,386     12,789     3%
 Cash Cost per 6E PGM oz(6)                   $/oz   551        587        6%        R/oz     9,724      10,043     3%
 Group Cash Cost Per 4E PGM oz(6)             $/oz   863        935        8%        R/oz     15,223     16,007     5%
 Group Cash Cost Per 6E PGM oz(6)             $/oz   678        734        8%        R/oz     11,960     12,566     5%
 All-in Sustaining Cost (4E)                  $/oz   1,119      1,289      15%       R/oz     19,731     22,067     12%
 All-in Cost (4E)                             $/oz   1,493      1,610      8%        R/oz     26,343     27,554     5%
 Thaba Cash Cost per Chrome tonne(6)          $/t    -          136        100%      R/t      -          2,320      100%

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
1,429 4E PGM ounces work-in-progress for Q2 FY2026.

2  The gross basket price in the table is the December 2025 gross 4E basket
used for revenue recognition of ounces delivered in Q2 FY2026, before
penalties/smelting costs and applying the contractual payability.

3  Revenue (6E) for Q2 FY2026, before adjustments is $49.2 million (6E prill
split is Pt 52%, Pd 18%, Rh 9%, Au 0%, Ru 16%, Ir 5%). Revenue excludes
profit/loss on foreign exchange.

4  The capital expenditure includes 50% attributable capital cost incurred
for the Thaba JV as well as stripping cost $3.8 million (Q1 FY2026 $3.6
million).

5  The cash balance excludes restricted cash held as guarantees $3.5 million
(Q1 FY2026 $3.4 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 24,642 4E PGM ounces (31,380 6E PGM) for the Quarter,
representing a marginal increase in comparison to Q1 FY2026. This constitutes
another record quarterly PGM production for the Group since inception,
surpassing the previous record achieved in Q1 FY2026.

 

Both the Eastern and Western Operations exceeded their respective ounce
forecasts for the Quarter, continuing the strong operational momentum
established in the prior period.

 

At the end of the Quarter, approximately 1,429 4E PGM ounces and 10,023
attributable Chrome tons remained in work in progress. These PGM ounces and
Chrome tons were produced but not delivered by 31 December 2025, and were
dispatched post Period-end.

 

On a quarter-on-quarter basis, PGM plant feed tons increased by 9%, reflecting
improved throughput across the operations. The increase in throughput was
partially offset by a 5% decrease in PGM feed grade when compared to Q1
FY2026, with both the Eastern and Western Operations experiencing lower feed
grades which were lower than the previous quarter, but still higher than
originally planned.

 

PGM plant recoveries decreased marginally by 2% in comparison to Q1 FY2026,
primarily driven by lower recoveries at Millsell and Mooinooi associated with
lower grade feed material. This was largely attributable to the processing of
open-cast material during December 2025, as well as adverse rainfall
conditions, which constrained access to higher-grade material from the current
Tailings Storage Facilities at these operations.

 

As a result, the overall plant feed head grade for the Quarter was 3% lower
than that recorded in Q1 FY2026. Despite these headwinds, the increased
throughput enabled the Group to deliver another record production quarter for
4E PGMs.

 

Operationally, the focus during Q2 FY2026 remained on balancing throughput,
mass pull discipline, and concentrate quality, while maintaining plant
stability under more challenging feed conditions. In parallel, the Quarter saw
the successful commissioning and operation of the new PGM Filtration Plant,
enabling SDO operations to transfer a dry filter cake to the smelter.

 

The commissioning of the Filtration Plant represents a significant operational
milestone, allowing the Group to consistently deliver concentrate of the
required quality to the smelter and also the ability to meet or exceed smelter
quality specifications. This enhancement further strengthens the robustness
and sustainability of the Group's downstream processing interface.

 

Operating cash costs increased by 3% in ZAR terms to ZAR12,789 per 4E ounce
(Q1 FY2026: ZAR12,386/ounce), and increased 6% in USD terms to $747 per ounce
(Q1 FY2026: $702/ounce). The USD cost increase was largely driven by a weaker
USD exchange rate against the ZAR, 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 FY2026, with
production ramp-up commencing thereafter and currently in progress. Plant
stability and run time as well as ore feed quality have improved towards
December 2025, but the initial ramp-up during Q2 FY2026 was slightly slower
than initially scheduled due to a combination of operational instability and
performance challenges during the optimisation phase and lower initial ROM ore
quality from the mine, associated with early development of the opencast pit
and higher than usual ore dilution.

 

The current focus is on further improving process stability and efficiencies
and on improving the ROM ore feed quality reporting to the plant, aimed at
ensuring stable and consistent feed grades, as well as improved grade
consistency within the processing circuit. A formal review of the mining plan
and schedule commenced during Q2 FY2026 with a pit-optimisation exercise
currently in progress and recommendations expected during Q3 FY2026.

 

The first Chrome and PGM concentrate products were successfully dispatched
during Q2 FY2026, marking an important milestone in the transition from
commissioning into steady-state operations. Based on ramp-up progress to date
and the latest mining schedule received from the mining team, the chrome
production outlook has been reduced to 60,000 to 90,000 tons for FY2026 with
the project expected to reach full operational capacity by the end of Q4
FY2026.

 

Financial performance

Revenue (4E) for the Quarter increased by 25% to $43.6 million (Q1 FY2026:
$35.0 million) as a result of an increase in the 4E gross basket price for the
Quarter of 22% to $2,374/ounce ($1,953/ounce in Q1 FY2026). Net revenue, which
includes revenue from by-products, base metals, and the quarter-on-quarter
sales adjustment, increased by 21% to $54.8 million (Q1 FY2026: $45.1
million). Net revenue includes attributable revenue received for ounces
produced from material purchased from third parties. Attributable Chrome
revenue from the Thaba JV amounted to $0.6 million.

 

Indirect operating costs increased by 22% to $6.1 million (Q1 FY2026: $5.0
million) mainly due to a higher Mineral Royalty Tax provision in Q2 FY2026 as
a result of the increased revenue and lower deductible capital available
during Q2 FY2026 compared to Q1 FY2026.

 

General and administrative costs increased by $0.06 million to $0.83 million
from $0.77 million in Q1 FY2026. These costs are incurred in USD, Pounds
Sterling ("GBP") and ZAR.

 

Adjusted Group EBITDA for the Quarter was $29.8 million (Q1 FY2026 $22.0
million), a 35% increase quarter-on-quarter. The increase is mainly due to the
21% increase in net revenue as a result of the 22% increase in 4E average
basket price, off-set marginally by the 10% increase in direct costs.

 

Group cash costs per 4E PGM ounce increased in ZAR terms from ZAR15,223/ounce
to ZAR16,007/ounce and increased in USD terms from $863/ounce in the previous
quarter to $935/ounce mainly as a result of a 10% increase in the Direct
Operating Cost and further affected in USD terms by the appreciation of the
ZAR against the USD.

 

All in sustaining costs increased by 15% in USD terms due to the increase in
both direct costs and indirect costs. The main contributors to the increase
were the increase in external material purchased as well as the higher Mineral
Royalty Tax during the Period.

 

The Group cash balance decreased quarter-on-quarter by 14% to $54.0 million
(Q1 FY2026 $62.7 million). Net cash outflow for tax obligations to the South
African Revenue Services during the Quarter amounted to $5.7 million. The
Company paid the final dividend for FY2025 of $6.8 million on 5 December 2025.
Surplus cash invested in both ZAR and USD earned interest income amounting to
$0.5 million.

 

Cash outflow for Group capital amounted to $7.3 million (Q1 FY2026 $8.4
million), comprising $7.2 million on stay in business and improvement capital
and $0.1 million on exploration projects. A further $5.7 million was
contributed to the JV partner through the working capital loan to support
operations following the completion of the commissioning in the prior period.

 

Cash generated from operations before working capital movements was $30.0
million, with net changes in working capital of $13.5 million mainly due to
the movement in trade receivables of $13.3 million. The increase in trade
receivables is due to the higher basket price in the second quarter, of which
the benefit will be realised during the third quarter of FY2026 due to the
contractual quotational period between delivery and invoicing, provided that
the basket price remains at the same level.

 

CORPORATE ACTIVITIES

 

On 27 November 2025, the Company released its ESG Report FY2025, for the year
ended 30 June 2025. The full report is available for download from the
Company's website www.sylvaniaplatinum.com (http://www.sylvaniaplatinum.com) .

 

Returning value to shareholders remains important to the Company.
Consequently, a final dividend of 2 pence per ordinary share for FY2025,
amounting to $6.8 million, was paid on 5 December 2025.

 

Interim financial results announcement

The Company will announce its interim results for the six months ended 31
December 2025 on Tuesday, 24 February 2026.

 

Analyst presentation

The Company will be hosting a webinar for analysts on the day of release of
its interim results. To register your interest, please email
Sylvania@BlytheRay.com.

 

Online investor presentation

The Company is committed to ensuring that there are appropriate communication
channels for all elements of its shareholder base so that its strategy,
business model and performance are clearly understood.

 

Sylvania's CEO, Jaco Prinsloo, and CFO, Ronel Bosman, will host a live
investor presentation, via the Investor Meet Company platform, on Wednesday,
25 February 2026 at 12:00 GMT.

 

The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event via the Investor Meet Company dashboard up until
09:00 GMT the day before the meeting or at any time during the live
presentation.

 

Investors can sign up to Investor Meet Company for free and include Sylvania
Platinum Limited via:

https://www.investormeetcompany.com/sylvania-platinum-limited/register-investor
(https://www.investormeetcompany.com/sylvania-platinum-limited/register-investor)
.

 

Investors who have already registered and elected to meet the Company, will be
automatically invited.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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