Sylvania Platinum Limited (SLP) has announced a 50:50 joint venture (JV) with Limberg Mining Company (LMC), called Thaba, to process platinum group metals (PGM) and chrome ores from LMC’s historical tailings dumps and run-of-mine (ROM) ore. It is expected to start production in H225 and will for the first time see Sylvania receiving a chromite concentrate revenue stream on its own account. Sylvania is investing US$32m in capital expenditure and US$5m in working capital from its large cash resources (of which 50% is a loan to LMC to be paid back from JV cash flow after production commences) in exchange for c 6,500koz of forecast PGM and 200kt of chrome concentrate production pa over 10 years. Edison Group values Sylvania’s 50% share of the JV at 17.2p/share, resulting in a 29.5% increase in their total valuation to 135.4p/share.
