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Some Weakness but Cash-flow Rich

Sylvania Platinum Ltd focuses on the re-treatment and recovery of platinum group metals including platinum, palladium and rhodium, mainly from tailings dumps and other surface sources, but also lesser amounts of run-of-mine underground ore from Samancor chrome mines in South Africa. Its results showed that despite lower production and higher costs, the company remains highly cash generative, and Edison expects net cash of US$110m (end-December 2021) to surpass US$200m by end FY24. ZAR unit costs rose in H122 due to western Sylvania Dump Operations (SDO) experiencing water shortages and temporary tailings dam instability at the Lesedi SDO. These issues are being addressed and could further improve the US$ cost outlook, which is already benefiting from a weaker rand. Edison’s evaluation for Sylvania is unchanged at 175p/share (163p for the producing SDO and 12p for its exploration projects) compared to its share price of c 100p.







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