South Africa's Sylvania Platinum Q4 revenue falls on lower prices

Overview

• South Africa PGM and chrome producer's Q4 revenue fell 38% quarter-on-quarter on lower basket prices

• Adjusted Group EBITDA dropped 65% as lower prices and higher costs weighed on margins

• Company achieved record annual 4E PGM production, exceeding prior guidance

Outlook

• SDO expected to continue strong performance in Q1 FY2027

• Company focusing on refining Thaba JV resource model and updating mine plan

• Company expects improved ore supply and processing stability at Thaba JV

Result Drivers

• LOWER PGM PRICES - Co said a 25% decrease in the 4E gross basket price was the primary driver of lower revenue and EBITDA

• HIGHER OPERATING COSTS - Direct operating costs rose 8% due to higher mining, diesel, and electricity expenses, mainly at Thaba JV

• THABA JV CHALLENGES - Chrome production at Thaba JV declined 6% due to slower mining progress, ore quality variability, and weather disruptions

Company press release: ID:nRSe7273Oa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-gold precious metals minerals peer group is "buy"

• Wall Street's median 12-month price target for Sylvania Platinum Ltd is GBp170.00, about 107.3% above its July 30 closing price of GBp82.00

• The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 3 three months ago

Reuters Recommended Reads

• July 29 - Valterra profit leaps on higher prices, sees AI driving future platinum demand

• July 30 - Anglo American's HY revenue rises 11% but misses estimates

• July 29 - Canada's Ivanhoe Mines Q2 profit rises on higher zinc and sulphuric acid prices

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)