Sylvania Platinum Ltd. · LSE:SLP
Sylvania Platinum — Investor Presentation (August 2014)
18 slides from Sylvania Platinum's investor presentation, August 2014
Slide 1: Corporate Presentation August 2014
Corporate Presentation August 2014 P L A T I N U M L I M I T E D
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: Preliminary results for the year ended 30 June 2014
Sylvania Platinum Limited Preliminary results for the year ended 30th June 2014 Financial snapshot Revenue up 18% to $47.2 million (FY2013: $40.0 million) EBITDA increased 29% to $11.2 million for the Sylvania Dump Operations (“SDO”) (FY2013: $8.7 million) Group adjusted EBITDA increased by 12
Slide 4: Share structure and ownership
Share structure and ownership CAPITALISATION SUMMARY TOP SHAREHOLDERS • Listed on AIM Africa Asia Capital 19,76% • Domiciled in Bermuda • Ticker symbol: SLP LN Audley Capital 10,17% • Basic shares outstanding: 297,981,896 M&G 9,66% • Options outstanding: 14,600,000 Capital 5,03% • Share price: 6.25p
Slide 5: Our business
Our business Sylvania Dump Operations Other projects • Seven fully operational chrome tailings processing • Open-pittable high grade chromite resources complexes - Adjacent to Volspruit project at Grasvally - Millsell, Mooinooi ROM and Mooinooi Tailings on the - Operational plan currently being form
Slide 6: Corporate strategy
Corporate strategy Value creation Shareholder-friendly use of cash • Free cash flow generation • Drive growth in equity value through - Consistent production at >50koz/year from cash flow generation allowing return of current infrastructure capital to investors - Low cash costs target c.$700oz • Foc
Slide 7: Tailings dump operations have reached steady state after several years of growth
Sylvania’s tailings dump operations have now reached steady state after several years of growth Ounce production 60 000 50 000 Tweefontein 40 000 Doornbosch Mooinooi ROM 30 000 Mooinooi Lannex 20 000 Steelpoort Millsell 10 000 - 2008 2009 2010 2011 2012 2013 2014 2015E 2016E 2017E Note: Sylvania fin
Slide 8: Monthly production rate trending in the right direction and becoming more stable
Monthly production rate trending in the right direction and becoming more stable Monthly PGM production 6 000 5 000 Trend line 4 000 3 000 2 000 1 000 - Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Source: internal data 8
Slide 9: Cash costs are trending towards steady state levels
Cash costs are trending towards steady state levels post ramp-up and impacts of industry-wide strikes Cash Cost $/oz 1 600,00 1 400,00 1 200,00 1 000,00 800,00 Millsell Steelpoort 600,00 Lannex 400,00 Mooinooi Mooinooi ROM 200,00 Doornbosch - Tweefontein 2010 2011 2012 2013 2014 2015E 2016E 2017E No
Slide 10: Committed capital expenditure decreasing to sustaining capital on dump operations only
Committed capital expenditure decreasing to sustaining capital on dump operations only Capex $m 25 20 15 10 Other 5 SDO Maintenance SDO Construction - 2010 2011 2012 2013 2014 2015E 2016E 2017E Note: ¹All non SDO capex including Grasvally; ²Normal Operational items; 1 USD = 10.50ZAR Source: internal
Slide 11: Forecast cash balance: dump operations now generating positive free cash flow
Forecast cash balance: dump operations now generating positive free cash flow 40 30 $m 20 10 - 30/06/2014 31/12/2014 30/06/2015 31/12/2015 30/06/2016 31/12/2016 30/06/2017 Cash Basket +20% Cash Basket +10% Cash Basket -10% Cash Basket -20% US$ Cash Current Basket Current Market Capitalisation Group
Slide 12: Dividend policy
Dividend policy • Provided the resultant company cash balance is greater than $8M, we intend to recommend paying a minimum of 25% of the previous semi-annual earnings as a cash dividend • The Board will also consider special dividends or share buybacks, based on the Company’s available free cash flo
Slide 13: Sylvania's business model is lower risk than other South African PGM producers
Sylvania’s business model is lower risk than other South African PGM producers SAFETY STATISTICS COMMENTS • Our surface-based operations are exposed to fewer safety-related risks than other producers Anglo Platinum 5,2 of PGMs • We target a lost-time injury rate of zero and have now had 7 months con
Slide 14: Higher ounce production per employee drives lower costs
Sylvania’s higher ounce production per employee drives lower costs and helps mitigate the impact of wage inflation PGM oz/man 160 140 120 100 80 60 40 20 0 SLP AMS IMP NHM RBP AQP LMI Note: ¹Defined as 2015 estimated PGM production (13 month forecast) divided by latest reported total employees (incl
Slide 15: Achievements in 2012-2014 and targets
Achievements in 2012-2014 and targets April 2012 • 6th plant (Mooinooi ROM) produced first ounces August 2012 • Dividend of Ironveld shares to Sylvania shareholders September 2012 • 7th plant (Tweefontein) produced first ounces October 2012 • Completed Australian delisting November 2012 • 12
Slide 16: Summary
Summary • Shareholder-friendly corporate strategy – Operations generate positive free cash flow – Disciplined capital allocation • Low cost producer with one of the highest margins • Lower risk business model than miners • Targeting maiden cash dividend 16
Slide 17: Contact us
Contact us Sylvania Platinum Limited: • Terry McConnachie +44 7775 337175 Liberum Capital Limited (NOMAD & broker): • Tom Fyson +44 20 3100 2230 17
Slide 18: www.sylvaniaplatinum.com
+27 11 673 1171 www.sylvaniaplatinum.com P L A T I N U M L I M I T E D
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