Sylvania Platinum: Edison
Metals and mining - AIM - Mcap: £181.7m - Price: 70p - Update
Annual guidance maintained, despite strike
Sylvania has maintained annual production guidance despite Q324 results being affected by a 22-day strike, resulting in 10% lower production. The PGM basket price was stable during the quarter, with positive platinum momentum offset by palladium weakness and rhodium prices stable. Operating costs increased by 5.6%, in line with expectations. FY24 production guidance is for 75,000–76,000oz, despite the challenges in Q324. Our PGM outlook is unchanged from our moderated forecasts earlier in the year. We have cut our FY24 EPS forecast by 2.2% from 7.4p to 7.2p on the Q324 miss, but have lifted our FY25 and FY26 forecasts slightly on the back a share buyback programme reducing the number of shares in issue. The company announced a special dividend of 1p/share following the sale of its Grasvally Chrome Mine for US$6.2m. We have lifted our valuation slightly to 120.0p/share due to a slightly weaker sterling and lower number of shares in issue, but have made no change to the carrying value of the exploration assets.
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Analyst
René Hochreiter
Mining analyst
mining@edisongroup.com
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