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Highlights

  • SLP posted a 62% surge in net profit in Q3 FY24 compared to Q2 FY24
  • In H1 FY24, the company had a lower debt-equity ratio of 0.00x versus the industry median of 0.42x
  • SLP declared a special dividend of GBX 1 per share, resulting in an annualised dividend yield of approximately 8.70%

Sylvania Platinum Limited (LSE: SLP) specialises in producing platinum group metals (PGMs), including rhodium, platinum, and palladium. The company has a market capitalisation of GBP 180.32 million and is listed on the FTSE AIM All-Share Index. Sylvania Platinum primarily focuses on the reprocessing of chrome tailings material containing platinum group metals (PGMs).

In the third quarter of FY24, the company posted a significant surge in net profit, whichrose 62% to US$ 2.53 million compared to US$ 1.55 million in Q2 FY24. This increase was attributed to a decrease in net tax expenses, as no dividend withholding tax was incurred on inter-company dividends during the quarter.

Further, the company had a higher current ratio of 10.92x in H1 FY24 versus the industry median of 1.82x and a lower debt-equity ratio of 0.00x versus the industry median of 0.42x.

Recent business update

The company informed that Sylvania Dump Operations ("SDO") yielded 17,232 4E (equivalent to 21,857 6E) PGM ounces in Q3 FY24, compared to 18,232 4E (equivalent to 23,105 6E) PGM ounces in Q2 FY24.

SLP’s management declared a special dividend of GBX 1 per share, scheduled for payment on 07 June 2024, resulting in an annualised dividend yield of approximately 8.70% based on the closing price as of 07 May 2024. Additionally, the company declared a share buyback of nearly US$ 1.2 million during Q3 FY24.

Company outlook

Sylvania’s production guidance for FY24 lies in the range of 74,000 to 75,000 4E PGM ounces. The company will continue efforts to address lower PGM recoveries from the blend of feed sources.

Top 10 shareholders

The top 10 shareholders of SLP together form about 34.31% of the total shareholdings. Africa Asia Capital, Ltd. holds maximum stake in the company at around 10.42% followed by Premier Asset Management Ltd which holds around 5.79%, as depicted in the chart below: 

Stock performance

Over the last three months, the stock price of SLP has increased by approximately 34.65%, while over the past six months, it has surged by around 2.81%. The stock’s 52-week low and high price stands at GBX 47.05 & 91.00, respectively. It is currently trading higher than the average of 52-week high-low.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 07 May 2024. The reference data in this report has been partly sourced from EODHD/Others.