No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Sylvania Platinum reported a strong first quarter on Tuesday, with a 12% quarter-on-quarter increase in platinum group metals (PGM) production from its Sylvania Dump Operations (SDO).
The AIM-traded company said it produced 19,160 ounces of 4E PGMs in the three months ended 30 September, up from 17,067 ounces in the fourth quarter of the 2024 financial year.
Net revenue for the quarter rose to $21.9m, compared to $20.6m in the prior quarter, while group EBITDA increased to $3.3m.
The company maintained a cash balance of $94.7m - a slight decrease from $97.8m in June.
Operational milestones were met without any lost-time injuries, and construction on the Thaba Joint Venture project remained on track, with first production expected in the second half of the 2025 financial year.
Additionally, Sylvania finalised the competent person's report for the Volspruit scoping study, which raised the project's pre-tax net present value to $69m, up significantly from $27.3m in 2022.
The firm reiterated its 2025 production guidance of 73,000 to 76,000 4E PGM ounces.
It said an ongoing performance enhancement project at the Lesedi operation, as well as a geophysical survey on the Aurora project, were expected to contribute to future growth.
With robust cash reserves, Sylvania said it planned to balance sustaining capital needs, expansion projects, and shareholder returns, having declared a final dividend of 1p per share for 2024, bringing the total dividend to 3p per share.
"Despite the continued macro-economic challenges, I am pleased with the significantly improved production performance of the SDO and group results in general for the first quarter of the 2025 financial year," said chief executive officer Jaco Prinsloo.
"This is especially promising as we have been seeing a gradual improvement in the PGM basket price in recent weeks, which bodes well for potential increased profitability going forward."
At 1250 GMT, shares in Sylvania Platinum were up 3.45% at 48p.
Reporting by Josh White for Sharecast.com.
