Sylvania Platinum Ltd. · LSE:SLP
Sylvania Platinum — FY2024 Earnings Presentation
43 slides from Sylvania Platinum's earnings presentation, September 2024
Slide 1: Results for the year ended 30 June 2024
SYLVANIAPLATINUM.COM Results for the year ended 30 June 2024 Beyond extraction A TECHNOLOGY AND SUSTAINABILITY PERSPECTIVE
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 and discussions to be held in September 2024. This document does not constitute or form part of any offer or invitatio
Slide 3: About us
About us… Vision WE VALUE THE SAFETY AND HEALTH OF ALL To be the best mid-tier platinum and associated metals producer in the world. Mission To grow our low-cost and efficient business by leveraging our existing asset base, and WE VALUE THE FUNDAMENTAL RIGHTS continuing innovation through existing a
Slide 4: Operations
Operations Sylvania Dump Operations ▪ Cash generative, lower-cost operations on the Eastern and Western Limbs of the Bushveld Igneous Complex (BIC), South Africa. ▪ The Sylvania Dump Operations (SDO) comprises six chrome beneficiation and PGM processing plants, treating a combination of ROM and curr
Slide 5: Exploration Assets
Exploration Assets Volspruit ▪ Volspruit, located at the southern end of the Northern Waterberg JV Limb of the BIC, is a shallow PGE-Ni-Cu deposit. Far ▪ Updated Scoping Study undertaken to assess the Northern Bushveld Igneous economic viability of the Project based on the updated Complex Limb miner
Slide 6: Results overview
Results overview 4E and 6E PGM 4E GROUP CASH COST NET REVENUE PGM PRODUCTION BASKET PRICE PER 4E PGM OZ 72,704oz (4E) $1,339/oz $907/oz $81.7m 92,426oz (6E) (FY2023: 75,469oz 4E; (FY2023: $2,086/oz) (FY2023: $771/oz) (FY2023: $130.2m) 95,965oz 6E) GROUP EBITDA BASIC EPS CASH BALANCE ANNUAL DIVIDEND
Slide 7: Operations
OPERATIONS SYLVANIAPLATINUM.COM
Slide 8: SDO production FY2024
SDO production FY2024 4E PGM PRODUCTION PGM FEED TONS 90 000 72,704oz 1,367,558 tons 80 000 Thaba JV 92,426oz (6E) (Attributable) 70 000 -4% -0% Lesedi 60 000 (FY2023: 75,469oz 4E; (FY2023: 1,372,936 tons) Tweefontein 95,965oz 6E) 50 000 40 000 Doornbosch PGM FEED GRADE PGM RECOVERY 30 000 Mooinooi
Slide 9: FY2025 Guidance
FY2025 Guidance ▪ Mooinooi performance normalised after strike related impact during HY2 FY2024. ▪ Continue treatment of higher-grade 3rd -party material at Eastern operations until June 2025 - optimising plant feed blend and profitability and contributing to Annual Production Target extended operat
Slide 10: Financial Results
FINANCIAL RESULTS SYLVANIAPLATINUM.COM
Slide 11: Profit statement
Profit statement 2024 2023 Revenue: $ $ Net revenue including by-products and sales adjustments – 36% drop in the gross 4E Revenue 81,712,471 130,196,100 basket price Cost of sales (69,037,113) (61,290,716) Cost of sales: Royalties tax (1,388,295) (4,903,977) Direct and indirect operating costs, inc
Slide 12: Financial performance
Financial performance REVENUE (‘000 $) 6E REVENUE 37% drop in net revenue Ru • 33.6% relates to the decrease in the 144 000 3% Ir 4E PGM basket price for the year 124 000 12% 104 000 Pt • 3.6% on lower ounce production 84 000 39% 64 000 Rh 44 000 32% Higher than inflation increases 24 000 Pd for pow
Slide 13: Group EBITDA at various pricing assumptions
Group EBITDA (at various pricing assumptions) FY2024 Group EBITDA of $'000 GROUP EBITDA $13.5 million 90 000 80 000 70 000 EBITDA impacted by the lower basket price 60 000 50 000 Forward-looking EBITDA estimate based on internal Company PGM price assumptions 40 000 30 000 Thaba JV included from Marc
Slide 14: Strong balance sheet
Strong balance sheet FY2024 FY2023 Cashflow for the Period ended 30 Capital expenditure estimate FY2024 FY2025 FY2026 June 2024 Non-current assets $’000 000 Cash flow from operations Exploration and evaluation 47,679,159 46,464,143 SIB 1.3 1.0 1.0 $14.7 million Property, plant and equipment 61,850,3
Slide 15: Shareholder returns
Shareholder returns DIVIDEND POLICY DIVIDEND The Company intends to distribute a Total dividends minimum of 40% of the adjusted paid to Final dividend 1 pence $105.0 million FY2024 per Ordinary Share free cash flow* for the financial year. shareholders Where annual dividends are (2018 to 2024) 2 pen
Slide 16: Growth
GROWTH SYLVANIAPLATINUM.COM
Slide 17: Thaba JV at a glance
Thaba JV at a glance Thaba JV (Total project – 100%) Chrome Ore and PGM Treatment Joint PROJECT CAPITAL SIMPLE PAYBACK COMMISSIONING LIFE OF PROJECT JV PARTICIPATION Venture (JV) 50% ~$45m <3 years H2 FY2025 10 years ▪ First PGM beneficiation facility on primary chrome ore and tailings on the northe
Slide 18: Thaba JV Outlook
Thaba JV Outlook Thaba JV Project Progress Thaba JV - Attributable Tons Treated & Thaba JV - Attributable PGM Production ▪ The Thaba JV Project is on schedule with detailed Chrome Production design work mostly complete and all phases of 400 000 8 000 4E PGM oz Tons per annum Total MetCon Chrome cons
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Slide 20: Exploration | Volspruit
Volspruit Combined open-pit Mineral Resource Exploration | Volspruit at 100% attributable basis (Earthlab, Feb 2024) The Volspruit Project represents a new Tonnage @ 3E+Au Cu Ni opencast PGM–Cu-Ni resource in a mature Classification 3E+Au (Oz) 10% geoloss (g/t) (%) (%) mining jurisdiction with excel
Slide 21: Exploration | Far Northern Limb
Waterberg JV Far Exploration | Far Northern Limb Bushveld Northern Limb Hacra Northern Limb AURORA Anglo Platinum Significant opencast potential - PGM–Cu-Ni resource Ivanplats open at depth (>200m). Mokopane (Potgietersrus) Aurora • Initial MRE for T-Zone resources on La Pucella Volspruit only decla
Slide 22: PGM & Chrome co-production
PGM & Chrome co-production 4E PGM Basket vs. MetCon Chrome Price ▪ PGMs and chromite both occur in the same $500 $5 000 $/oz 4E PGM $/ton Chrome MetCon (CIF China) primary chrome ores (MGs and LGs) and primary PGM UG2 ores. $400 $4 000 ▪ Co-existence enables exploitation of otherwise uneconomical ch
Slide 23: Growth Projects Outlook
Growth Projects Outlook FY2025 FY2026 – FY2028 Existing SDO operations Existing SDO operations ▪ New higher grade current arisings feed source at Lesedi – host-mine to ▪ Potential new ROM circuit at Millsell plant to accommodate additional ROM commission new ROM Plant during Q2 FY2025. ore from host
Slide 24: Market Overview
MARKET OVERVIEW SYLVANIAPLATINUM.COM
Slide 25: PGM basket composition and price trend
PGM basket composition Actual FY2024 $6 000 Gross PGM Metal Price per Ounce 4E R60 000 PGM Prill Split and price trend Au $5 000 4E PGM Dollar Basket Price 4E PGM ZAR Basket Price R50 000 0,2% Rh $4 000 R40 000 ▪ Sylvania’s rhodium (Rh) percentage is typically 11,5% higher than average UG2 and Meren
Slide 26: PGM industry cost curve
PGM industry cost curve Western Limb Global PGM Cash Cost + Capex curve (CY24E - at spot) Eastern Limb Northern Limb Zimbabwe North America 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 5 500 6 000 6 500 7 000 7 500 8 000 8 500 40 000 40 000 Cumulative annual production (4E Koz) 35 000
Slide 27: PGM Market Demand Supply Outlook
PGM Market Demand Supply Outlook ▪ Auto Catalysts primary demand driver for ▪ South Africa still largest producer of Pt and ▪ Pt, Pd and Rh to be in deficit for 2024 and PGMs (49% Pt, 83% Pd, 95% Rh). Rh (~72% of Pt and 81% Rh), and significant near term. Pd producer (~35%) globally. ▪ Car sales rec
Slide 28: PGM price forecasts
PGM price forecasts Pt Pd Rh Au Sources: ▪ Nedbank CIB Outlook – 7 Aug 2024 price assumptions are based on “Precious Metals Industry Insight: Outlook 2024 – Cat Among the Pigeons”, published by analyst Arnold van Graan ▪ Liberum Capital – 26 Jun 2024 – “Commodity priceDeck – Slack Water”. ▪ Company
Slide 29: Chrome Market Demand Supply Outlook
Chrome Market Demand Supply Outlook ▪ China is largest consumer of chrome globally ▪ South Africa is home to ~72% of the global ▪ Robust outlook in terms of demand and (~90%). chromite resources. pricing. ▪ Stainless steel industry is biggest driver and ▪ South Africa is producer and exporter of ▪ S
Slide 30: ESG
ESG SYLVANIAPLATINUM.COM
Slide 31: Environment, Social and Governance
Environment, Social and Governance Environment Social Governance Extract of economic contribution in South Africa (FY2024) Salaries and wages R294,681,797 $15,749,790 ▪ First revegetation trial on TSF ▪ Zero fatalities since commencing ▪ QCA Corporate Governance completed: observations of grass oper
Slide 32: Investment Case
INVESTMENT CASE SYLVANIAPLATINUM.COM
Slide 33: Investment Case
Investment Case Dedicated to delivering consistent Strong, reliable production, shareholder returns through maintaining low-cost operations. dividends and share buybacks. Robust cash generation, Harnesses the offering ample full potential of opportunities for existing assets and ESG principles embed
Slide 34: Thank You
THANK YOU SYLVANIAPLATINUM.COM
Slide 35: Contact details
Sylvania Platinum Limited BlytheRay (COMMUNICATIONS) Jaco Prinsloo / Lewanne Carminati Tim Blythe / Megan Ray +27 11 673 1171 +44 20 7138 3204 Sylvania@blytheray.com Panmure Liberum Limited (NOMAD) Scott Mathieson / John More / Joshua Borlant +44 20 3100 2000 sylvaniaplatinum@panmureliberum.com 35
Slide 36: Appendix
APPENDIX SYLVANIAPLATINUM.COM
Slide 37: Board of Directors
Board of Directors Eileen Carr Jaco Prinsloo Independent Non-Executive Chair Managing Director & Chief Executive Officer Ms Carr joined the Board of Sylvania Platinum Mr Prinsloo has been appointed as CEO and admitted Limited on 1 May 2015 and was appointed as Chair of to the Sylvania Board since Ma
Slide 38: Board of Directors
Board of Directors Adrian Reynolds Simon Scott Lewanne Carminati Independent Non-Executive Director Independent Non-Executive Director Financial Director & Chief Financial Officer Mr Reynolds joined the Board as from 1 August 2021. Mr Scott joined the board on 1 January 2022 and on Ms Carminati is a
Slide 39: Share structure and ownership
Share structure and ownership Capitalisation summary – 30 June 2024 Top shareholders 16,46% Hargreaves Lansdown Asset Management 15,24% Quoted: AIM 14,36% Interactive Investor 13,14% Domiciled: Bermuda 10,29% Africa Asia Capital 10,41% Ticker symbol: SLP LN 6,17% AJ Bell Group 5,68% Basic shares wit
Slide 40: Performance Summary
Performance Summary FY2024 Performance overview FY2023 FY2022 FY2021 Audited Cash generative operations 4E PGM production Oz 72,704 75,469 67,053 70,043 Stable production 6E PGM production Oz 92,426 95,965 85,659 94,041 Group cash cost / 4E oz $/oz 907 771 897 755 Growth and sustainability requiring
Slide 41: Operating costs
Operating costs FY2024 Direct costs Chrome WIP income Third-party material 1% -3% 8% Labour Other 26% 7% Tailings 3% Consumables & laboratory costs 15% Power 16% Maintenance 10% Travel/Transport Mining 2% 9% 41
Slide 42: Typical SDO plant flowsheet
Typical SDO plant flowsheet Generic process flow sheet for Sylvania’s Dump Operations Treating combination of ROM chrome ore (Mooinooi and Lannex Plants only), and current and historical chrome tailings material Recover and return chrome product to host mine & generate cash from recovery and sale of
Slide 43: PGM metal price scenarios
PGM metal price scenarios Sylvania FY2024 to FY 2027 Estimates Sylvania FY2024 to FY 2027 Estimates - Company Internal Price Assumptions - Aug 2024 - Current Spot Prices - Aug 2024 2025 2026 2027 2025 2026 2027 Pt $/oz 1,129 1,226 1,348 Pt $/oz 940 940 940 Sources: PD $/oz 1,063 1,034 1,042 PD $/oz