Sylvania Platinum Limited’s Q224 and H124 results were overshadowed by a lower PGM basket price, which resulted in a 10% reduction in revenue. With the delay in the PGM price recovery Edison Group had expected, they have pared back their forecasts, particularly for platinum and rhodium. This, combined with Sylvania’s weaker-than-expected Q224 results, has resulted in a 30% reduction in Edison’s FY24 EPS estimate to 7.4p, with cuts of 23% and 14% for FY25 and FY26, respectively. Edison’s new valuation is 118p/share, down 13% from their previous 135p/share. With exploration assets valued at book value and conservatism in Edison’s Thaba joint venture (JV) valuation, their valuation offers upside as projects graduate from exploration to production over the coming years.
26 February 2024
