Sylvania Platinum Ltd. · LSE:SLP
Sylvania Platinum — H1 FY2012 Earnings Presentation
19 slides from Sylvania Platinum's earnings presentation, March 2012
Slide 1: Half year Results and Production update to March 2012
Sylvania Platinum Half year Results and Production update to March 2012 www.sylvaniaplatinum.com
Slide 2: Disclaimer
Disclaimer Certain forward-looking statements may be contained in this presentation which include, without limitation, expectations regarding platinum prices, estimates of production, operating expenditure, capital expenditure and projections regarding the completion of capital projects as well as t
Slide 3: Company Overview
Company Overview • Domiciled in Bermuda • Listings – Primary:- Australian securities Exchange (ASX:SLP) o Delists end April 2012 – Secondary:- London’s AIM market (AIM:SLP) – Shares in issue: 301 251 805 • Market Capitalisation: GBP 60.25 million * • Shareholders # with > 4% of shares in issue (>50%
Slide 4: Operational Highlights
Operational Highlights Half year ended 31st Dec 2011 compared to (half year ended June 11) •PGM production increased 12% to 25,179 oz (22,483 oz) •Plant feed increased 4% to 779,653 tonnes (752,146 tonnes) •PGM Plant feed tonnes increased by 4% to 365,982 tonnes (353,411 tonnes) •PGM recoveries incr
Slide 5: Consistent delivery
Consistent delivery • Share performance in-line with peers • Impact of growth and good margins not appreciated by market Sylvania vs Peer Group (-12M) Sylvania 5
Slide 6: Long Term Performance
Long Term Performance SDO Profit Before Tax & Depreciation Sylvania Platinum Turnover 14 000 30 000 US$ ‐Thousands US$ ‐Thousands 12 000 25 000 10 000 20 000 8 000 15 000 6 000 10 000 4 000 2 000 5 000 ‐ ‐ June Dec June Dec June Dec June Dec June Dec June Dec June Dec June Dec June Dec June Dec 2007
Slide 7: US$/oz cash costs at operation level & per plant
US$/oz cash costs at operation level & per plant Represents average basket price Source: RBC Equity Research 7
Slide 8: Sylvania assets in the Bushveld complex of South Africa
Sylvania assets in the Bushveld complex of South Africa Northern All plants operated by Sylvania Dump Operations (SDO) limb section – 6 plants operational – 7th plant about to be constructed at Tweefontein. – Growth potential o Tweefontein MG2 Volspruit o UG 2 Dumps section Eastern limb dump operati
Slide 9: Sylvania Dump Operations: ROM & Twin Plant at Mooinooi
Sylvania Dump Operations: ROM & Twin Plant at Mooinooi 8: 8: Scrubbing Scrubbing and and Milling Milling Current Current Arisings Arisings Feed Feed 10: 10: Thickener Thickener Dump Feed Feed Dump 11: 11: Flotation Flotation 7: 7: Secondary Secondary Crushing Crushing 9: Chrome 9: Chrome Spiral Spir
Slide 10: Q3 and Year End outlook
Q3 and Year End outlook • Year end forecast now at 50 koz – Company continues to show a good growth trend – Forecast below planned target of 60 koz – Production growth from 2008 to 2012 remains good o Average growth per year of + 8 koz • Q3 production impacted by a number of unforeseen incidents – T
Slide 11: Strong Mineral Resource
Strong Mineral Resource – Life of mine planned ounces produced from Dump Material, Current Arisings & Run of Mine improved o 60 koz per year targeted for the next 10 years – Expansion of MG2 operations through synergy between host mine and Sylvania will extend mine life o Mooinooi project complete o
Slide 12: Near Term Projects
Near Term Projects Proposed Iron ore spin out •Iron ore asset to be spun out into a separate AIM listed company; Mercury Recycling Group plc •Shares to be distributed to existing shareholders as “in specie” dividend •Team in place and initial drilling complete Everest North •Detailed studies underwa
Slide 13: Volspruit (Southern section of northern limb)
Volspruit (Southern section of northern limb) • Extensive trials completed and project viability independently verified – Smelting trials produced metal alloy ready for refining – Refining trials have produced PGM rich metal powder and pure Nickel powder • Total project design well underway – PFS fo
Slide 14: Volspruit & Northern Limb Project Development Strategy
Volspruit & Northern Limb Project Development Strategy • Operating Strategy Mine – The Volspuit project becomes the model for future mines • Operations Overview – Open pit mine • Conventional drill and blast Pelletizer Crushing and Milling • Ore transported to concentrator plant Flotation – Processi
Slide 15: Growth Potential Northern Limb Projects
Growth Potential Northern Limb Projects SYLVANIA RESOURCES -12 000 E -11 000 E -10 000 E -90 00 E -80 00 E -70 00 E -60 00 E Hotspots at Aurora-Hacra •Harriets Wish -2598000 N The MSA Group Date: 29 March 2011N -2598000 0 250 500 750 1000 1250 1500 – Drilling to determine extent of new reef horizon
Slide 16: Opportunities
Opportunities • South Africa has a vast opportunity in the MG and LG horizons where symbiotic projects between chrome mining and platinum mining can be exploited. – Many mines have a planned operating life of +50 years • MG2 mining will extend mine life – Mooinooi plant is currently exploiting the M
Slide 17: Sylvania Platinum upside potential
Sylvania Platinum upside potential • Longer term production potentially anticipated to build up to > 225 koz per year 17
Slide 18: Conclusion
Conclusion • Dump process working well and profitable – Robust margins • Upside with expansion via MG, LG chrome and UG2 PGM dumps • SDO will achieve an approximate 25% growth year on year ~ 50 000 oz – SDO remains confident of ability to achieve 15 koz per quarter into the future • Proposed disposa
Slide 19: Attractive company valuations
Attractive company valuations Recent research reports 19