top of page

Great Cost Control

The key take-away from Sylvania Platinum Ltd's Q222 report is expense control delivered on both cash cost per oz (-5.5% on Q1) and direct operating costs (-1.4%). This trend could deliver sustained margin benefits even if production disruptions and a delayed recovery in average gross basket prices have a dominant impact on FY22 expectations. Our valuation of 175p/share as at October 2021 initiation presents meaningful upside from current levels of 93p with production declines receiving attention and René Hochreiter expecting a near-term PGM basket uptick with improving demand dynamics (see his long-term outlook published in December). A large cash pile of USD110.1m after US$27.5m in dividends and taxes bodes well for a healthy payout, including a likely windfall dividend. 1H22 results are out on 21 February 2022.


Edison Group#metals#mining

https://www.linkedin.com/feed/update/urn:li:activity:6894684734492962816



Sylvania-Platinum-Great-cost-control-2
.pdf
Download PDF • 254KB


0 views0 comments

Recent Posts

See All
bottom of page