Sylvania Platinum (LON: SLP) has more than doubled interim revenues and declared a 2p/share interim dividend. The outlook for platinum group metals production and prices remains positive. There was a small contribution from the Thaba chrome joint venture, which should make a larger contribution in the second half.
The AIM-quoted tailings processor and minerals explorer, which has six platinum group metal processing plants in the Bushveld complex in South Africa, produced 49,164 4E platinum group metals (PGM) ounces in the six months to December 2025, up from 39,398 ounces in the corresponding period last year. The first chrome and PGM products were produced by the Thaba joint venture.
Interim revenues were 110% higher at $99.8m due to a combination of increased production and a 55% rise in platinum group metals prices. There was a $600,000 contribution from chrome sales. Pre-tax profit jumped from $9.7m to $36.7m, which was after a $12.3m write-down of the Hacra exploration project.
The centralised PGM filtration plant was commissioned late in the period, and it will enable a more stable quality of concentrate to be produced, which will help to prevent penalties from buyers.
Cash was $54m at the end of December 2025. Management has set aside $2.5m for share buybacks. That still leaves plenty of cash to invest in the existing business. There is another potential chrome joint venture, as well as two remaining exploration projects.
Full year production guidance is 90,000-93,000 4E PGM – seasonally lower second half – and there is a chrome concentrate target of 60,000-90,000 tons.
The chrome target has been reduced due to plant optimisation issues that were more complex than expected. A review of the mine plan is being undertaken. The plant could still ramp up to full capacity by the summer.
Panmure Liberum forecasts a full year pre-tax profit of $90.5m, although it anticipates a decline to around $71m in 2026-27. The share price edged up 1p to 121p, which is around six times prospective 2025-26 earnings. The forecast yield is nearly 2.5%.
Cash can be invested in new projects that will further enhance revenues and profit.