REG - Sylvania Platinum - Third Quarter Operations Report to 31 March 2026

Sylvania PlatinumAnnouncement

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RNS Number : 3734C  Sylvania Platinum Limited  29 April 2026

 

 

29 April 2026

 

Sylvania Platinum Limited

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

 

Third Quarter Operations Report to 31 March 2026

 

Positive Momentum Maintained

 

Sylvania (AIM: SLP), the platinum group metals ("PGM") and emerging chrome producer and developer, with assets in South Africa, announces its production results for the three months ended 31 March 2026 (the "Quarter", the "Period" or "Q3 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 22,853 4E (29,372 6E) PGM ounces in
Q3 FY2026 (Q2 FY2026: 24,642 4E (31,380 6E) PGM ounces), with both the Eastern
and Western Operations exceeding their respective business plan targets for
the Quarter;

 * Thaba Joint Venture ("Thaba JV") continued its ramp-up during the Quarter,
with an 80% increase in chrome production, delivering 19,030 tons (Q2 FY2026:
10,531 tons). While Q3 FY2026 performance was in line with the anticipated
production profile as previously communicated, challenges post Period-end have
negatively impacted the full year outlook;

 * Group's Operations were Lost-Time Injury ("LTI")-free during the Quarter, with
several key safety milestones achieved, including Doornbosch reaching five
years Total Injury free, and Lannex, Lesedi and Millsell reaching five, six
and four years LTI-free, respectively;

 * SDO recorded $78.7 million net revenue for the Quarter, a 44% increase
quarter-on-quarter (Q2 FY2026: $54.8 million);

 * Adjusted Group EBITDA of $47.8 million, a 61% increase quarter-on-quarter (Q2
FY2026: $29.8 million);

 * Share Buyback Programme on market of $2.0 million was launched during the
Period;

 * Group cash balance increased quarter-on-quarter by 17% to $63.3 million (Q2
FY2026: $54.0 million); and

 * Interim dividend for FY2026 of 2.00 pence per Ordinary Share was declared in
February 2026 and paid in April 2026 post-Period end.

Outlook

 * The Company is likely to achieve or exceed the upper end of the previously
increased PGM production guidance of 90,000 to 93,000 4E PGM ounces, announced
in Q2 FY2026.

 * While various optimisation initiatives are underway to improve ROM feed
quality and stability as plant ramp-up continues, the Chrome concentrate
production guidance for the year has been revised to between 50,000 to 55,000
tons following run of mine (''ROM'') feed quality and weather-related
challenges in recent weeks; and

 * The Group remains debt free and continues to fund capital expansion projects
and process optimisation projects from cash reserves and continues to support
growth initiatives in order to unlock value for shareholders, as within their
stated capital allocation framework.

 

 

 

 

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

 

"I am pleased to report the Company had another strong Quarter, especially at
the SDO, with the production of 22,853 4E PGM ounces, which, due to the usual
Christmas break, was a slight decrease from the record production achieved in
Q2 and Q1 FY2026, but in line with expectations for the Period. Consequently,
the Company is likely to achieve or exceed the upper end of the previously
increased PGM production guidance of 90,000 to 93,000 4E PGM ounces, announced
in the last quarter.

 

"After successfully transitioning into production, the Thaba JV continues to
build operational momentum, and the plant throughput and Chrome production for
the past quarter were in line with the revised ramp-up plan communicated in
February 2026. However, post Period-end, lower ROM feed tonnage and feed grade
negatively impacted overall plant performance, while abnormally high rainfall
during April 2026 has further impacted mining production volumes and plant
throughput due to flooding and material handling challenges with the wet ore.
As a result, chrome production guidance for FY2026 has been revised to between
50,000 and 55,000 tons. The focus remains on improving mine planning,
scheduling optimisation, and mining standards to improve ROM feed quality,
plant feed stability and throughput, and enhancing processing efficiencies as
we progress towards steady-state operations.

 

"In April, a tragic incident occurred at the Tweefontein Operation, whereby a
Phoenix Security Officer, a contractor for the Company, lost his life during a
criminal attack while on duty. The Board of Sylvania sends its heartfelt
condolences to the individual's family, friends and colleagues.

 

"We are committed to the safety and security of our employees and contractors
and, during the Quarter, recorded zero LTIs across the SDO and Thaba JV
Operations. We also achieved several key safety milestones, including
Doornbosch reaching five years Total Injury free, Lannex six years LTI-free,
Lesedi three years LTI-free and Millsell one-year Total Injury free and four
years LTI-free.

 

"From a financial perspective, the average 4E gross basket price increased by
28% in USD and 23% in Rand ("ZAR") terms, and this, together with the
increased contribution from attributable Chrome sales of $4.0 million,
resulted in an improved net revenue performance of $78.7 million (Q2 FY2026:
$54.8 million).

 

"The adjusted Group EBITDA for the Quarter rose to $47.8 million (Q2 FY2026:
$29.8 million), which is a significant 61% increase quarter-on-quarter, and
similarly to revenue, increased as a result of the increased gross 4E basket
price and Chrome sales contribution."

 

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

 Megan Ray / Rachael Brooks                   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 emerging Chrome producer and developer
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  Q2 FY2026  Q3 FY2026  % Change
 Plant Feed                              T     637,771    679,366    7%
 Feed Head Grade                         g/t   2.34       2.17       -7%
 PGM Plant Feed Tons                     T     369,071    379,173    3%
 PGM Plant Feed Grade                    g/t   3.61       3.42       -5%
 PGM Plant Recovery(1)                   %     57.55%     54.82%     -3%
 Total 4E PGMs                           Oz    24,642     22,853     -7%
 Total 6E PGMs                           Oz    31,380     29,372     -6%
 Chrome                                  T     10,531     19,030     81%

 

 Unaudited                                           USD                                      ZAR
                                              Unit   Q2 FY2026  Q3 FY2026  % Change  Unit     Q2 FY2026  Q3 FY2026  % Change
 Financials (3)
 Average 4E Gross Basket Price(2)             $/oz   2,374      3,047      28%         R/oz   40,643     49,861     23%
 Revenue (4E)                                 $'000  43,636     52,003     19%       R'000    746,910    851,301    14%
 Revenue (by-products including base metals)  $'000  5,299      8,881      68%       R'000    90,698     145,373    60%
 Sales adjustments                            $'000  5,252      13,781     162%      R'000    89,901     225,596    151%
 Chrome Revenue                               $'000  649        4,048      523%      R'000    11,103     66,272     497%
 Net revenue                                  $'000  54,836     78,713     44%       R'000    938,612    1,288,542  37%

 Direct Operating costs                       $'000  18,873     24,337     29%       R'000    323,055    398,403    23%
 Indirect Operating costs                     $'000  6,106      7,314      20%       R'000    104,508    119,736    15%
 General and Administrative costs             $'000  827        757        -8%       R'000    14,158     12,392     -12%
 Adjusted Group EBITDA                        $'000  29,803     47,844     61%       R'000    510,227    783,206    54%
 Adjusted Net Profit                          $'000  21,894     32,978     51%       R'000    374,825    539,850    44%

 Capital Expenditure(4)                       $'000  7,347      3,518      -52%      R'000    125,781    57,590     -54%

 Cash Balance(5)                              $'000  53,956     63,285     17%       R'000    894,590    1,079,642  21%

 Ave R/$ rate                                                                        R/$      17.12      16.37      -4%
 Spot R/$ rate                                                                       R/$      16.58      17.06      3%
 Unit Cost/Efficiencies
 Cash Cost per 4E PGM oz(6)                   $/oz   747        910        22%       R/oz     12,789     14,895     16%
 Cash Cost per 6E PGM oz(6)                   $/oz   587        708        21%       R/oz     10,043     11,589     15%
 Group Cash Cost Per 4E PGM oz(6)             $/oz   935        1,110      19%       R/oz     16,007     18,171     14%
 Group Cash Cost Per 6E PGM oz(6)             $/oz   734        863        18%       R/oz     12,566     14,127     12%
 All-in Sustaining Cost (4E)                  $/oz   1,289      1,577      22%       R/oz     22,067     25,814     17%
 All-in Cost (4E)                             $/oz   1,610      1,752      9%        R/oz     27,554     28,676     4%
 Thaba Cash Cost per Chrome ton(6)            $/t    136        131        -4%       R/t      2,320      2,141      -8%

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
1,532 4E PGM ounces work-in-progress for Q3 FY2026.

2  The gross basket price is the March 2026 gross 4E basket used for revenue
recognition of ounces delivered in Q3 FY2026, before penalties/smelting costs
and applying the contractual payability.

3  Revenue (6E) for Q3 FY2026, before adjustments is $60.6 million (6E prill
split is Pt 50%, Pd 19%, Rh 10%, Au 0%, Ru 17%, Ir 4%). 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 $1.1 million (Q2 FY2026 $1.7
million).

5  The cash balance excludes restricted cash held as guarantees $3.4 million
(Q2 FY2026 $3.5 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 22,853 4E PGM ounces (29,372 6E PGM) for the Quarter. While
this represents a decrease relative to the record production achieved in Q2
FY2026, it is in line with expectations for the Period following the normal
Christmas break, and both the Eastern and Western Operations exceeded their
respective business plan targets, reflecting continued operational consistency
despite more challenging feed conditions.

 

On a quarter-on-quarter basis, PGM plant feed tons increased by 3%,
demonstrating sustained throughput across the Operations. This increase was,
however, offset by a 5% decrease in feed grade, largely attributable to the
processing of a higher proportion of lower-grade material during the Period.
This trend is typical at the start of the calendar year, as mining operations
ramp up and a greater proportion of open-cast material is processed while
access to higher-grade current arisings normalises. In addition, reduced
volumes of current arisings necessitated the continued utilisation of
historical dump material to maintain stable plant throughput, which further
contributed to the lower overall feed grade.

 

The increased reliance on open pit and dump material, both of which have
inherently lower recovery potential compared to fresh arisings, resulted in a
decline in overall PGM recovery by 3% compared to the previous Quarter. This
reduction in recovery was observed across several operations, including
Mooinooi, Lesedi, Millsell and Tweefontein. Within the Western Operations, the
decrease in recovery was primarily driven by the higher proportion of
open-cast material processed, while at Tweefontein it was largely associated
with an increased contribution from dump material during the Quarter.

 

Despite these aspects, which the Company routinely plans for, the Group
maintained strong operational discipline, with continued focus on balancing
throughput, mass pull optimisation and concentrate grade, while ensuring plant
stability. These efforts have supported the overall consistency of performance
across the operations and underpin the resilience of the SDO operating model.

 

At the end of the Quarter, approximately 1,532 4E PGM ounces and 11,804 tons
of Chrome remained in work in progress. These ounces and tons were produced
but not delivered by Period-end and are expected to be dispatched in the
following Quarter.

 

In April, post-Period end, a tragic incident occurred at the Tweefontein
Operation, whereby a Phoenix Security Officer, a contractor for the Company,
lost his life during a criminal attack while on duty. The Board of Sylvania
sends its heartfelt condolences to the individual's family, friends and
colleagues.

 

No other personnel were injured during the incident and operations at
Tweefontein have not been impacted and onsite conditions have been calm since.

 

The Company is in full cooperation with the South African Police Service as it
carries out its investigation into the incident. Sylvania is committed to the
safety and security of its employees, contractors and host communities, and
continues to adopt all necessary measures to safeguard its personnel.

 

Health and safety remain a top priority. There were no LTIs recorded across
the operations. This performance was further reinforced by several safety
milestones achieved during the Period. Doornbosch reached five years Total
Injury free, Lannex achieved six years LTI-free, Lesedi reached three years
LTI-free, and Millsell achieved one-year Total Injury free together with four
years LTI-free. These milestones reflect the continued strength of the Group's
safety culture and the consistent leadership focus on ensuring that all
employees return home safely every day.

 

Operating cash costs increased by 16% in ZAR terms to ZAR14,895 per 4E ounce
(Q2 FY2026: ZAR12,789/ounce), and increased 22% in USD terms to $910 per ounce
(Q2 FY2026: $747/ounce). The USD cost increase was partially driven by a
weaker USD exchange rate against the ZAR, partially offset by the lower PGM
production volumes achieved during the Quarter.

 

Overall, Q3 FY2026 demonstrates the underlying robustness of the SDO
operations. Despite the lower feed grades and recovery conditions typically
experienced during the third Quarter impacting production relative to the
previous Period, the ability to sustain throughput, meet business plan targets
and maintain an excellent safety performance highlights the strength and
resilience of the operating platform.

 

Thaba JV

Production ramp-up at the Thaba JV Project continued during Q3 FY2026, with
gradual improvements in plant stability, run time and overall processing
performance, which was in line with the anticipated production profile as
previously communicated, but challenges post Period-end have negatively
impacted the full year outlook.

 

While the ROM feed grade and mining rate have increased during the Period, the
ROM feed tonnage and feed grade deteriorated post Period-end, which negatively
impacted overall plant performance and ROM feed consistency remains a focus
area, targeting improved grade control, reduced dilution, and ensuring the
delivery of more consistent and competent material to the processing plant.

 

In addition, post Period-end, abnormally high rainfall during April 2026 has
also impacted mining production volumes and plant throughput due to flooding
and material handling challenges with the wet ore, and as a result, chrome
production guidance for FY2026 has been revised to between 50,000 and 55,000
tons.

 

Through the engagement with our JV partner, who is managing the mining
operations, and specialist mining consultants, the focus remains on improving
mine planning, scheduling optimisation, and mining standards to improve ROM
feed quality, plant feed stability and throughput, and enhancing processing
efficiencies as we progress towards steady state. Additional drilling has also
been completed, with the resulting data currently undergoing verification to
support an updated geological model, and an initial pit optimisation exercise
has been conducted. The Group is awaiting incorporation of the latest
geological data to guide the future mine planning and assist with optimisation
efforts.

 

From a processing perspective, while still ramping up throughput, the
operation has demonstrated encouraging progress and the plant has consistently
produced on-specification metallurgical concentrate from both the primary and
secondary spiral circuits, and a meaningful improvement in PGM concentrate
grade has been achieved over the Quarter. In parallel, further optimisation
work is underway, including the detailed design of modifications aimed at
debottlenecking the secondary processing circuit and improving operational
flexibility.

 

Overall, the Thaba JV Project continues to advance, with steady improvements
in operational performance and product quality providing a solid foundation
for further optimisation as the operation matures.

 

Financial performance

Revenue (4E) for the Quarter increased by 19% to $52.0 million (Q2 FY2026:
$43.6 million) as a result of an increase in the 4E gross basket price for the
Quarter of 28% to $3,047/ounce (Q2 FY2026: $2,374/ounce). Net revenue, which
includes revenue from by-products, base metals, and the quarter-on-quarter
sales adjustment, increased by 44% to $78.7 million (Q2 FY2026: $54.8
million). Net revenue includes attributable revenue received for ounces
produced from material purchased from third parties. Attributable Chrome
revenue from the Thaba JV increased to $4.0 million (Q2 FY2026: $0.6 million).

 

Indirect operating costs increased by 20% to $7.3 million (Q2 FY2026: $6.1
million) mainly due to a higher Mineral Royalty Tax provision in Q3 FY2026 as
a result of the increased revenue and lower deductible capital available
during Q3 FY2026 compared to Q2 FY2026.

 

General and administrative costs decreased by $0.07 million to $0.76 million
from $0.83 million in Q2 FY2026. These costs are incurred in USD, Pounds
Sterling ("GBP"), and ZAR.

 

Adjusted Group EBITDA for the Quarter was $47.8 million (Q2 FY2026: $29.8
million), a 61% increase quarter-on-quarter. The increase is mainly due to the
44% increase in net revenue as a result of the 28% increase in 4E average
basket price, offset by the 29% increase in direct costs.

 

Group cash costs per 4E PGM ounce increased in ZAR terms from ZAR16,007/ounce
to ZAR18,171/ounce and increased in USD terms from $935/ounce in the previous
Quarter to $1,110/ounce, mainly as a result of both a 29% increase in the
Direct Operating Cost and a 6% decrease in 4E production and further affected
in USD terms by the appreciation of the ZAR against the USD.

 

All in sustaining costs increased by 22% in USD terms due to the increase in
both direct costs and indirect costs. The main contributors to the increase
were the increase in mining ROM ore, external material purchased as well as
the higher Mineral Royalty Tax during the Period.

 

The Group cash balance increased quarter-on-quarter by 17% to $63.3 million
(Q2 FY2026: $54.0 million). Net cash outflow for tax obligations to the South
African Revenue Services during the Quarter amounted to $6.4 million. Surplus
cash invested in both ZAR and USD earned interest income amounting to $0.4
million.

 

Cash outflow for Group capital amounted to $3.5 million (Q2 FY2026: $7.3
million), comprising $3.4 million on stay in business and improvement capital
and $0.1 million on exploration. A further $6.4 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.

 

At a corporate level, a total of 1,106,692 shares were bought back during the
Period, of which 276,692 shares were bought back from Persons Displaying
Management Responsibilities ("PDMRs") and employees and 830,000 shares were
bought back through the on-market Share Buyback programme, which was launched
on 23 March 2026, amounting to $1.4 million.

 

Cash generated from operations before working capital movements was $48.0
million, with net changes in working capital of $20.9 million mainly due to
the movement in trade receivables of $16.3 million. The increase in trade
receivables is due to the higher basket price in the third Quarter, of which
the benefit will be realised during the fourth Quarter of FY2026 due to the
contractual quotational period between delivery and invoicing, provided that
the basket price remains at the same level.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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