Sylvania Platinum Share News (SLP)

(Sharecast News) - Sylvania Platinum reported a sharp increase in interim earnings on Tuesday, after record production and a stronger platinum group metals basket price drove a doubling of revenue for the six months ended 31 December.

Net revenue rose 110% to $99.8m from $47.6m a year earlier, reflecting a 25% increase in 4E PGM ounce production and a 55% rise in the average basket price in US dollar terms.

Adjusted group EBITDA increased 414% to $51m from $9.9m, while net profit rose to $23.2m from $7.2m.

Earnings per share were 8.93 US cents, compared with 2.73 cents in the prior period.

Cash as at 31 December stood at $54m, down from $77.5m a year earlier and $60.9m on 30 June.

The group recognised a non-cash impairment of $12.3m on the Hacra exploration asset, which does not form part of its development plan.

In line with its capital allocation policy, $2.5m had been set aside for potential share buybacks.

An interim dividend of 2p per ordinary share was declared.

Operationally, Sylvania Dump Operations delivered record production of 49,164 4E PGM ounces, up from 39,398 ounces in the first half of 2025, driven by a 9% increase in PGM feed tons and a 10% rise in feed grades.

Construction of the centralised PGM filtration plant was completed and commissioned, while the Doornbosch and Mooinooi tailings storage facilities were brought online.

The Thaba joint venture dispatched its first chrome and PGM concentrate products during the period.

"I am delighted with our record half year production of 49,164 ounces of 4E PGM, which is also the second consecutive year of beating our half yearly forecast," said chief executive Jaco Prinsloo.

"The 25% increased production coupled with the 55% increase in the 4E PGM basket price in US dollar terms saw a 110% increase in net revenue to $99.8m as well as a 414% increase in adjusted group EBITDA to $51.0m."

He added that the company remained debt free and, following the commissioning of the Thaba JV, expected it to become "an attractive revenue contributor for the company when it reaches full operational name plate capacity".

Looking ahead, the company maintained upgraded full-year guidance of 90,000 to 93,000 4E PGM ounces for the 2026 financial year, compared with initial guidance of 83,000 to 86,000 ounces, while the chrome concentrate target remained 60,000 to 90,000 tons.

Construction of the Lannex and Tweefontein tailings storage facilities was scheduled to begin in the second half of 2026, with completion targeted for mid-2027.

Prinsloo said the group's "robust cash position" provided flexibility to fund expansion and optimisation projects and support growth initiatives, adding that any potential share buybacks would be subject to market conditions and capital requirements.

At 1258 GMT, shares in Sylvania Platinum were up 1.34% at 121.61p.

Reporting by Josh White for Sharecast.com.