Sylvania Platinum - Cost control and production improvements

Sylvania Platinum's Q225 production increased by 7.4% on Q125, driving a 104% increase in EBITDA to US$6.7m, supported by cost control and a small increase in the average platinum group metals (PGM) basket price. FY25 4E PGM production guidance of 73,000-76,000oz is underpinned by the 39,398oz delivered to date. South African rand direct operating costs were up 0.5% on Q125 (0.7% in US dollar terms). However, a 5% stronger spot US dollar versus the rand has improved the US dollar costs outlook. We have revised our PGM forecasts downwards, lowering revenue expectations, but this is moderated by lower cost forecasts. We lift FY25e EPS by 1.9% on strong Q225 delivery, but lower FY26e EPS by 6.1% to 10.1c (FY27 by 3.0% to 11.3c). Our valuation is down 2.3% (106.8p/share) with lower forecasts countered by weaker sterling versus the dollar.

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