Sylvania Platinum Ltd. · LSE:SLP
Sylvania Platinum — FY2021 Earnings Presentation
41 slides from Sylvania Platinum's earnings presentation, Sep 6, 2021
Slide 1: Annual Results for the Financial Year Ended 30 June 2021
ANNUAL RESULTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021 Investor Presentation 6 September 2021 PAGE
Slide 2: Disclaimer
DISCLAIMER • This document, which is personal to the recipient and has been issued by Sylvania Platinum Limited (the “Company”), comprises written materials/slides for presentations to be held in September 2021. This document does not constitute or form part of any offer or invitation to sell or iss
Slide 3: FY2021 at a Glance
FY2021 AT A GLANCE PAGE
Slide 4: FY2021 Group Snapshot
FY2021 GROUP SNAPSHOT PGM Feed Tons PGM Recovery PGM Production 1,272,974 53.99% 70,043oz 17% 5% 1% (FY2020: 1,092,630) (FY2020: 56.90%) (FY2020: 69,026oz) PGM Basket Price Net Revenue Group Cash Cost EBITDA $3,690/oz $206.1m $755/oz $144.9m 83% 79% 21% 108% (FY2020: $2,015/oz) (FY2020: $115.1m) (FY
Slide 5: Safety, Sustainability & ESG
SAFETY, SUSTAINABILITY & ESG PAGE
Slide 6: Values & ESG
VALUES & ESG ➢ Sylvania’s approach to safety, sustainability and ESG is woven into the fabric of the business running through our core values. ➢ We are committed to proactively contribute towards solving global challenges through our people and operations and aligning the key drivers of our business
Slide 7: Safety & ESG Performance
SAFETY & ESG PERFORMANCE SAFETY & HEALTH ENVIRONMENT GOVERNANCE ➢ Fatality–free at all operations ➢ No significant environmental ➢ Western Operations to undergo since inception incidents since inception their bi-annual wage negotiations for implementation in FY2022 ➢ Commenced Greenhouse gas data ➢
Slide 8: Safety & ESG Performance
SAFETY & ESG PERFORMANCE EMPLOYEES COMMUNITIES ➢ Approximately 628 full time employees, 19% ➢ Preferential employment from local communities female ➢ Various intern and learnership programmes aimed ➢ Employee remuneration and benefits maintained at metallurgical and artisan development from irrespec
Slide 9: PAGE
PAGE 9
Slide 10: Operations and Projects
OPERATIONS AND PROJECTS PAGE
Slide 11: Location of Operations and Projects
LOCATION OF OPERATIONS AND PROJECTS ▪ Six chrome beneficiation and platinum group metal (PGM) processing plants ▪ Mining rights for a number of PGM projects and a chrome prospect on the Northern Limb of the Bushveld Igneous Complex in South Africa. PAGE 11
Slide 12: Production Profile
PRODUCTION PROFILE Produced 70,043oz 4E PGMs for FY2021 (FY2020: 69,026oz) ➢ Profitable operational life beyond ten years1. 4E Ounce Production 80 000 70 000 Actual FY2021 Lesedi PGM Prill Split 60 000 Tweefontein Rh Au 50 000 12,5% 0,3% Doornbosch 40 000 Pd 30 000 Mooinooi *1 23,4% Pt 20 000 Lannex
Slide 13: Operational Focus Areas
OPERATIONAL FOCUS AREAS Opportunities COMMENTS New Secondary ➢ Lesedi secondary milling and flotation (“MF2”) project progressing well and on track to start Milling & Flotation contributing towards production from early H2 FY2022; (MF2) circuits at ➢ Development of the Tweefontein MF2 project has co
Slide 14: Operational Focus Areas: Challenges
OPERATIONAL FOCUS AREAS CHALLENGES COMMENTS ➢ Significant increase in lower grade, more oxidised open cast ROM at affected plants. ➢ PGM feed grades and recovery efficiencies affected. ➢ Continuous PGM flotation and reagent optimisation drive to optimise recoveries. Lower fresh ROM and Current ➢ Hig
Slide 15: Project Focus / Growth Pipeline
PROJECT FOCUS / GROWTH PIPELINE 2008 2013 2017 2020 2023 Creating Treatment Improving Process Efficiencies Unlocking Potential – Existing Resources Capacity Fine Chrome Technology & R&D Lannex Fine Chrome Circuit (FY2023) Sylvania Dump Operations Constructing Process Technology Project ECHO MF2 Mill
Slide 16: Project Focus / Growth Pipeline: Exploration Assets
PROJECT FOCUS / GROWTH PIPELINE 2008 2013 2020 2023 Exploration & Test Permitting & Resource & Process Optimization Work Authorisations Exploration Volspruit » Volspruit Environmental Review and optimization of Mine and Process Designs (~3.1m oz PGM & 123kt Ni) & Social » DRA engaged as Specialist C
Slide 17: Financial Performance
FINANCIAL PERFORMANCE PAGE
Slide 18: Revenue
REVENUE Net Revenue increased Impact of increase in Impact of increase in 79% to basket price on ounce production revenue $206.1m $1.7m $89.3m $'000 250 000 200 000 150 000 100 000 50 000 0 FY2020 Metal Price Variance Volume variance FY2021 115,095 89,321 1,696 206,112 PAGE 18
Slide 19: Operating Cost
OPERATING COST ➢ SDO FY2021 cash cost increased 19% against FY2020 ➢ Higher processing consumables and re-mining costs associated with lower grade opencast ROM sources treated and higher electricity costs ➢ Forecast to continue through FY2022 Cash Cost $/oz SDO five main direct cash costs 1 000 Base
Slide 20: Group EBITDA
GROUP EBITDA ➢ FY2021 EBITDA driven by stable PGM ounce production and significantly higher metal prices; ➢ FY2022 estimated EBITDA slightly lower - accounting for lower Rh price forecast. Group EBITDA - US$ US$ 200 000 000 180 000 000 SPOT Pricing Assumptions 160 000 000 140 000 000 Nedbank CIB Out
Slide 21: Capital Expenditure
CAPITAL EXPENDITURE ➢ FY2022 / FY2023 project capital includes Lesedi and Tweefontein MF2 secondary PGM flotation modules, similar to other Project Echo modules. ➢ SDO stay-in-business (“SIB”) capital increase during next three years, primarily due to three new tailings storage facilities (“TSF”) to
Slide 22: Cash Flow
CASH FLOW Inflow from operating Outflow from Outflow from Annual Dividend activities investing activities financing activities 4p $68.2m Operating profit before working $7.6m $21.9m per ordinary share Share buy backs $1.6m capital $145.6m Capital outflow $6.1m Dividends paid $20.1m Forecast cash out
Slide 23: Returning Value to Shareholders
RETURNING VALUE TO SHAREHOLDERS Shareholder-friendly corporate strategy ➢ Operations generate positive free cash flow ➢ Disciplined capital spend ➢ No equity issuance since 2009 ➢ Paying regular annual dividend Annual Dividend ➢ FY2021 Declared dividend of 4p per Ordinary Share Cash Dividends Share
Slide 24: PGM Basket & Forecast
Say he PGM BASKET & FORECAST
Slide 25: PGM Basket Composition & Price Trend
PGM BASKET COMPOSITION & PRICE TREND ➢ Sylvania’s Rhodium percentage typically higher than average UG2 and Merensky ores, and Palladium portion lower. ➢ Attractive exposure to Rhodium run during past year. ➢ Increase in Gross PGM Basket during FY2021 primarily driven by Rhodium (~168% up) and Platin
Slide 26: PGM Price Forecasts
PGM PRICE FORECASTS 2 500 2 500 $/oz $/oz Pt 2 000 Pd 2 000 1 500 1 500 1 000 1 000 500 500 - - 2022 2023 2024 2025 LT 2022 2023 2024 2025 LT Nedbank CIB (Jul '21) $1 150 $1 100 $1 100 $1 100 $1 100 Nedbank CIB (Jul '21) $2 000 $1 300 $1 200 $1 200 $1 200 SBG Securities (Jul '21) $1 200 $1 300 $1 30
Slide 27: Strategy & Outlook
STRATEGY & OUTLOOK PAGE
Slide 28: Strategy & Outlook
STRATEGY & OUTLOOK Strive to be a leading mid-tier, low unit cost, Platinum Group Metal (PGM) mining company by: Maintaining Safe & Profitable Progressing R&D and Production Exploration Projects • Navigate through the COVID-19 crisis • Progress R&D efforts in terms of fine-chrome • Maintain producti
Slide 29: Outlook
OUTLOOK ➢ Management and the Board are confident that Sylvania will achieve a production target of approximately 70,000 4E PGM ounces for FY2022. ➢ With the market forecast for PGMs, and in particular Palladium and Rhodium, to remain in deficit throughout the 2021 calendar year, coupled with the dem
Slide 30: Summary
SUMMARY PAGE
Slide 31: Why Sylvania?
WHY SYLVANIA? Low Risk Attractive Proven Track Sustainable Shareholder Record Business Returns Attractive PGM Healthy Cash Strong Free Cash Basket - unique Resources to Flow Generation Rh exposure fund Growth Strong Experienced Disciplined ESG Management Capital FOCUS Team Allocation PAGE 31
Slide 32: Contact Us
CONTACT US Sylvania Platinum Limited • Jaco Prinsloo +27 11 673 1171 • Lewanne Carminati +27 11 673 1171 Liberum Capital Limited (NOMAD) • Richard Crawley / Scott Mathieson / +44 20 3100 2000 Edward Phillips SylvaniaPlatinum@liberum.com Alma PR Limited (Communications) • Justine James / Harriett Jac
Slide 33: Appendices
APPENDICES PAGE
Slide 34: Operating Cost: Relative Industry Position
OPERATING COST RELATIVE INDUSTRY POSITION Sylvania remains a low cash cost PGM producer: SDO FY2021 All-in Cost, including Capital is $981/oz (FY2020: $713/oz), higher than Nedbank CIB’s estimate of ~$750/oz based on 2021CY estimate, before Interim Results release. Global PGM cash cost+capex curve (
Slide 35: Appendix 1 – Metal Price Assumptions
APPENDIX 1 – METAL PRICE ASSUMPTIONS Sylvania FY2021 to FY2023 Estimates -10% Basket Price +10% Basket Price 1 2 3 - Current Spot Prices - Aug '21 Sensitivity Sensitivity 2022 2023 2024 2022 2023 2024 2022 2023 2024 Pt $/oz 1 009 1 009 1 009 Pt $/oz 908 908 908 Pt $/oz 1 110 1 110 1 110 Pd $/oz 2 54
Slide 36: Share Structure and Ownership
SHARE STRUCTURE AND OWNERSHIP CAPITALISATION SUMMARY – 30 JUNE 2021 TOP SHAREHOLDERS 11,43% Hargreaves Lansdown Asset… 16,84% • Listed: AIM Interactive Investor 6,90% 14,05% 21,06% • Domiciled: Bermuda Africa Asia Capital 11,14% 6,19% • Ticker symbol: SLP LN Miton Asset Management 7,19% 4,39% AJ Bel
Slide 37: FY2021 vs FY2020 Production Summary
FY2021 VS FY2020 PRODUCTION SUMMARY ZAR Unit Unaudited Unit FY 2020 FY 2021 % Change % Change FY 2021 FY 2020 Production 2,341,452 2,700,685 15% T Plant Feed T 15% 2,700,685 2,341,452 2.00 1.88 -6% g/t Feed Head Grade g/t -6% 1.88 2.00 1,092,630 1,272,974 17% T PGM Plant Feed Tons T 17% 1,272,974 1,
Slide 38: FY2021 vs FY2020 Finance Summary
FY2021 VS FY2020 FINANCE SUMMARY APPENDIX 2 – FY2020 VS FY2019 FINANCIAL SUMMARY USD ZAR Unit Unaudited Unit FY 2020 FY 2021 % Change % Change FY 2021 FY 2020 Financials 104,424 188,293 80% $’000 Revenue (4E) R’000 78% 2,888,758 1,625,244 6,236 13,253 113% $’000 Revenue (by-products including base m
Slide 39: FY2021 vs FY2020 Unit Cost/Efficiencies
FY2021 VS FY2020 UNIT COST/EFFICIENCIES APPENDIX 2 – FY2020 VS FY2019 FINANCIAL SUMMARY USD ZAR Unit Unaudited Unit FY 2020 FY 2021 % Change % Change FY 2021 FY 2020 Unit Cost/Efficiencies 615 729 19% $/oz SDO Cash Cost per 4E PGM oz R/oz 17% 11,189 9,577 461 543 18% $/oz SDO Cash Cost per 6E PGM oz
Slide 40: Typical SDO Process Flow Sheet
TYPICAL SDO PROCESS FLOW SHEET Chrome Current Arisings from Beneficiation Current Arisings from Host Mine Plant Lanxess Plants (Spirals & WHIMS) Saleable Chrome Product Dump Feed from Dormant Tailings Dam Coarse Tails Fines to ROM Feed * PGM Plant Final Tailings Dam MG2 ROM MF2 PGM ROM Fines Milling
Slide 41: Board of Directors
BOARD OF DIRECTORS Stuart Angus Murray Jaco Prinsloo Lewanne Carminati Independent Non-executive Managing Director & Chief Financial Director & Chief Chairman Executive Officer Financial Officer Mr Murray has over 30 years of executive Mr Prinsloo has been appointed as CEO Ms Carminati joined Sylvan