Sylvania Platinum (SLP) H2 2024 earnings summary

Executive summary

• Production reached 72,704 ounces, slightly below guidance due to strike disruptions and lower feed grades, but operations have stabilized.

• Revenue and profitability declined significantly in FY2024, mainly from a 36% drop in PGM basket prices and slightly lower production volumes.

• Maintained strong cash position with $97.8 million and no debt, supporting continued dividends and share buybacks.

• Strategic focus on growth through Thaba JV, exploration assets, and operational improvements, with Thaba JV expected to diversify revenue from 2026.

• Continued emphasis on low-cost, low-risk operations and sustainable value creation for shareholders.

Financial highlights

• Net revenue for FY2024 was $81.7 million, down 37% year-over-year, mainly due to lower metal prices.

• EBITDA for the year was $13.5 million, down from $66.0 million in FY2023.

• Basic EPS was $0.0266 (2.66 US cents), down from 17.01 US cents.

• All-in cost per ounce was $1,125–$1,168, with expectations to decrease to $890 in 2025 and $760 from 2026.

• Annual dividends and buybacks totaled just under $11.4 million, with total dividends paid at $23.4 million.

Outlook and guidance

• FY2025 production guidance is 73,000–76,000 ounces, supported by improved Western operations and ongoing optimization.

• Thaba JV commissioning in H2 2025, with steady-state contributions expected from 2026, adding 6,800–9% PGM ounces and 210,000 tons of chrome annually.

• EBITDA forecasts for 2026 and 2027 include $14–15 million from Thaba JV.

• Capital requirements for 2025 and 2026 have increased, mainly for Thaba JV, tailings dams, and strategic projects.

• Ongoing optimisation and restructuring at Lesedi to improve profitability.