Sylvania Platinum Ltd. · LSE:SLP
Sylvania Platinum — H1 FY2021 Earnings Presentation
37 slides from Sylvania Platinum's earnings presentation, February 2021
Slide 1: Interim Results FY21 Investor Presentation
INTERIM RESULTS FY21 Investor Presentation 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 February 2021. This document does not constitute or form part of any offer or invitation to sell or issu
Slide 3: H1 FY21 at a Glance
H1 FY21 AT A GLANCE PAGE
Slide 4: H1 FY21 Group Snapshot
H1 FY21 GROUP SNAPSHOT STRONG PERIOD OF RECOVERY PGM Feed Tons PGM Recovery PGM Production 632,079 55.66% 36,335oz 3% 3% 9% (H1 FY2020: 615,980) (H1 FY2020: 57.14%) (H1 FY2020: 40,003oz) PGM Basket Price Group Revenue Group Cash Cost Group EBITDA $3,184/oz $85.2m $739/oz $58.0m 74% 44% 33% 58% (H1 F
Slide 5: Strategy & Focus Areas
STRATEGY & FOCUS AREAS 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 prod
Slide 6: Safeguarding Our People & Environment
SAFEGUARDING OUR PEOPLE & ENVIRONMENT SAFETY & HEALTH ENVIRONMENT COVID-19 RESPONSE • Fatality–free at all operations • No significant environmental • No disruption to Operations in since inception incidents in past 5 years H1 • One LTI at Millsell during Sep ‘20 • Minimal hazardous waste • 39 infec
Slide 7: Caring for Our People & Communities
CARING FOR OUR PEOPLE & COMMUNITIES EMPLOYEES COMMUNITIES • Approximately 580 full time employees, 20% • Preferential employment from local communities female • Various intern and learnership programmes aimed at metallurgical and artisan development from • Employee remuneration maintained irrespecti
Slide 8: Operations and Projects
OPERATIONS AND PROJECTS PAGE
Slide 9: 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 9
Slide 10: Production Profile
PRODUCTION PROFILE Production on track to achieve estimated target of 70,000oz 4E PGMs for FY2021 ➢ H1 FY2021: 36,335 4E PGM ounces (H1 FY2020: 40,003); ➢ Profitable operational life of approximately eight to ten years1. 4E PGM Ounce production 80 000 70 000 Lesedi 60 000 Tweefontein Doornbosch 50 0
Slide 11: Operational Focus Areas
OPERATIONAL FOCUS AREAS CHALLENGES HOW WE FARED • Depressed chrome market necessitated host mines to scale back primary mining operations at certain sites. Lower fresh ROM • SDO operations increased plant feed tons to mitigate impact of resultant lower feed and Current grades and PGM recovery at aff
Slide 12: Project Focus / Growth Pipeline
PROJECT FOCUS / GROWTH PIPELINE 2008 2013 2017 2020 2023 Creating Treatment Capacity Improving Process Efficiencies Unlocking Potential Sylvania Dump Operations Process Technology & R&D Ultra-Fine Grinding » High Intensity Fine Chrome Technology & R&D PGM Flotation » Ultra-Fine Project ECHO Fine Scr
Slide 13: Current Capital Projects
CURRENT CAPITAL PROJECTS Lesedi MF2 – estimated commissioning during H1 FY2022. Lannex ROM Milling and Spirals circuit upgrade - commissioned during Q1. Mooinooi Fine Screening – to be commissioned during Q4. PAGE 13
Slide 14: Financial Performance
FINANCIAL PERFORMANCE PAGE
Slide 15: Revenue
REVENUE FOR THE SIX MONTHS TO 31 DECEMBER 2020 Revenue increased Impact of increase Impact of decrease 44% to in basket price on in ounce production revenue $85.2m $5.4m $31.6m $’000 100 000 Total revenue split (6E) 0.0%, Au 2.4%, Ir 80 000 1.4%, Ru 19.5%, Pt 60 000 40 000 17.2%, Pd 20 000 59.5%, Rh
Slide 16: Operating Cost
OPERATING COST ➢ SDO H1 FY2021 cash cost increased 48% against H1 FY2020 ➢ Lower ounce production, higher re-mining cost due to less fresh current arisings and RoM, consulting costs, higher salaries and wages and electricity cost; ➢ Higher royalty tax. ➢ Forecast to continue through H2 FY2021 and FY
Slide 17: Operating Cost: Relative Industry Position
OPERATING COST RELATIVE INDUSTRY POSITION Sylvania remains a low cash cost PGM producer: SDO H1 FY2021 All-in Cost, including Capital is $801/oz (H1 FY2020: $629/oz), in line with Nedbank CIB’s estimate of ~$797/oz based on 2020CY estimate and before Interim Results release Western Limb Global PGM c
Slide 18: Group EBITDA Forecast
GROUP EBITDA FORECAST ➢ Stable PGM ounce production profile and significant increase in metal prices forecast; ➢ 2022 estimated EBITDA in line with ounce forecast and impact of host mine scale down. Group EBITDA - US$ Base Case - SPOT $160 000 000 $140 000 000 -10% Basket Price $120 000 000 +10% Bas
Slide 19: Capital Expenditure
CAPITAL EXPENDITURE ➢ FY2017 to FY2020 project capital primarily for Project ECHO and strategic projects contributing towards PGM ounce profile. ➢ FY2020 and FY2021 project capital includes Mooinooi proprietary chrome processing and classification optimisation project and Lesedi MF2 secondary PGM fl
Slide 20: Cash Flow
CASH FLOW Inflow from Outflow from Outflow from Windfall Dividend operating activities investing activities financing activities 3.75 pence $12.3m $2.6m $7.3m per ordinary Share buy backs $1.4m Operating profit before working capital $58.4m Capital outflow $2.5m Dividend paid $5.9m share Increase in
Slide 21: 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 dividends Special Windfall Dividend ➢ 3.75 pence “Windfall Dividend” per ordinary share ➢ Based on higher
Slide 22: PGM Basket
PGM BASKET PAGE
Slide 23: Gross PGM Metal Price Trend
GROSS PGM METAL PRICE TREND Actual FY2021 H1 PGM Prill Split Au Rh 0,2% 12,7% Pd 23,7% Pt 63,3% Sylvania Revenue Distribution ➢ PGM Basket price increase primarily driven 70% 60% by Rhodium (167% up) and Palladium 50% 40% (27% up); 30% ➢ ZAR 4E PGM Basket price was 83% higher 20% 10% - combination o
Slide 24: 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 - - 2021 2022 2023 2021 2022 2023 Nedbank CIB - 14 Jan '21 $1 050 $1 000 $ 950 Nedbank CIB - 14 Jan '21 $2 000 $1 500 $1 200 SBG Securities - 28 Jan '21 $1 000 $1 000 $1 100 SBG Securities - 28 Jan '21 $2 400
Slide 25: Summary
SUMMARY PAGE
Slide 26: Why Sylvania?
WHY SYLVANIA? Low Risk Attractive Proven Track Sustainable Shareholder Record Business Returns Attractive PGM Strong Free Basket - unique Healthy Cash Cash Flow exposure to Resources Generation Rhodium Experienced Disciplined Solid Growth Management Capital Opportunity Team Allocation PAGE 26
Slide 27: 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 / Helena Bogle
Slide 28: Appendices
APPENDICES PAGE
Slide 29: 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 - 1 - 16 Feb '21 Sensitivity Sensitivity 2021 2022 2023 2021 2022 2023 2021 2022 2023 Pt $/oz 1 169 1 169 1 169 Pt $/oz 1 052 1 052 1 052 Pt $/oz 1 286 1 286 1 286
Slide 30: Share Structure and Ownership
SHARE STRUCTURE AND OWNERSHIP CAPITALISATION SUMMARY – 31 DEC 2020 TOP SHAREHOLDERS 21,06% Africa Asia Capital 19,06% • Listed: AIM Hargreaves Lansdown Asset 11,43% Management 13,08% • Domiciled: Bermuda 6,90% Interactive Investor 7,73% • Ticker symbol: SLP LN 6,19% Miton Asset Management 7,13% • Ba
Slide 31: FY2021 H1 vs FY2020 H1 Production Summary
FY2021 H1 VS FY2020 H1 PRODUCTION SUMMARY USD ZAR Unit Unaudited Unit HY1 2020 HY1 2021 % Change % Change HY1 2021 HY1 2020 Production 1,348,769 1,421,445 5% T Plant Feed T 5% 1,421,445 1,348,769 2.28 1.93 -15% g/t Feed Head Grade g/t -15% 1.93 2.28 615,980 632,079 3% T PGM Plant Feed Tons T 3% 632,
Slide 32: FY2021 H1 vs FY2020 H1 Finance Summary
FY2021 H1 VS FY2020 H1 FINANCE SUMMARY APPENDIX 2 – FY2020 VS FY2019 FINANCIAL SUMMARY USD ZAR Unit Unaudited Unit HY1 2020 HY1 2021 % Change % Change HY1 2021 HY1 2020 Financials 50,960 77,545 52% $’000 Revenue (4E) R’000 68% 1,257,824 748,964 Revenue (by-products and base 3,375 3,341 -1% $’000 R’0
Slide 33: FY2021 H1 vs FY2020 H1 Unit Cost/Efficiencies
FY2021 H1 VS FY2020 H1 UNIT COST/EFFICIENCIES APPENDIX 2 – FY2020 VS FY2019 FINANCIAL SUMMARY USD ZAR Unit Unaudited Unit HY1 2020 HY1 2021 % Change % Change HY1 2021 HY1 2020 Unit Cost/Efficiencies 530 710 34% $/oz SDO Cash Cost per 4E PGM oz R/oz 48% 11,511 7,795 400 524 31% $/oz SDO Cash Cost per
Slide 34: 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 35: Typical PGM Concentrate Metal Prill Splits
TYPICAL PGM CONCENTRATE METAL PRILL SPLITS ➢ Sylvania Rhodium percentage typically higher than average UG2 and Merensky ores, and Palladium portion lower Typical PGM Prill Splits 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Sylvania Typical Typical Sylvania LG6 Sylvania MG2 Combined UG2 Merensky Au 0
Slide 36: SDO Cash Operating Cost Breakdown
SDO CASH OPERATING COST BREAKDOWN Other Work in Progress 2% Sylvania Shared Sylvania Dump Operations Inventory Cost Services Charge FY2021 H1 Actual COVID-19 0% 3% 1% Cash Cost Breakdown Royalties Tax 8% Salary & Wages Equipment Hire 34% 2% Safety , PPE & Insurance 2% Electrical Consumption 12% Tail
Slide 37: 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