Business
Sylvania Platinum (SLP): Initiation - Massive f...
Sylvania Platinum (SLP): Initiation - Massive f....
About this update from Sylvania Platinum Ltd.
[{"type":"text","content":"\n \n\n\nEdison Investment Research Limited\n\n\n\nSylvania Platinum (SLP): Initiation - Massive free cash flows post-spike in PGM prices30-Oct-2021 / 07:00 GMT/BST\n\n\n \n\nLondon, UK, 30 October 2021\n\n \n\nSylvania Platinum (SLP): Initiation - Massive free cash flows post-spike in PGM prices\n\nSylvania Platinum's (SLP) core business is the production of low-risk platinum group metals (PGM) from chrome tailings dump retreatment in South Africa (SA). The business is high margin, reflecting a low-cost base and in FY21 it benefited from the surge in PGM prices, which have since moderated with a sharp dip in Q122 and are now firming up again. The company's large net cash position and highly cash-generative nature, even post the spike in PGM prices in 2021, positions it well for attractive dividends, high cash generation and possible corporate action.\n\n \n\nSylvania's business has a favourable cost base. It has low labour intensity, high efficiency of 116oz PGM per employee pa (vs Anglo Platinum at 78oz PGM per employee pa), surface-only operations (low-cost vs underground mining), a long life and the lowest cash cost/oz in the SA peer group. Alongside the group's strong cash generation, this leads us to a valuation of 175p/share, including 163p/share for the producing operations and a carrying value of 12p/share for its E&E assets, representing more than 60% upside from current levels. \n\nClick here to view the full report or here to sign up to receive research as it is published. \n\n \n\nAll reports published by Edison are available to download free of charge from its website\n\nwww.edisongroup.com\n\nAbout Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. \n\nHaving been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg ...