Sylvania Pt confirms payout of “windfall dividend” after PGM price strength persists

SYLVANIA Platinum is to pay a “windfall dividend” of 3.75 pence per share following a strong showing in the six months ended December.

The company, which extracts platinum group metals (PGMs) from chrome tailings, reported a 70% increase in half year net profit to $40.5m. Cash as of December 31 was $67.1m, a doubling compared to $33.8m reported in December the year prior.

The windfall dividend, which was flagged as a possibility in Sylvania Platinum chairman Stuart Murray’s 2020 year end statement if rhodium and palladium prices were maintained, will be payable in April. A final dividend of 1.6 pence per ordinary share for Sylvania’s 2020 financial year was paid in December.

PGM prices have been sky-high owing to supply deficits in rhodium and palladium. The platinum price is also on the up as it becomes clear that metal will enter a supply deficit in the course of this year or next.

Sylvania produced 36,335 4E PGM ounces in the six months ended December which compares to production of 40,003 4E PGM ounces for the corresponding interim period of the previous financial year. The lower production was a result of “… fresh arisings and lower PGM feed grades associated with the scale-down at some host mine operations”, the company said.

Jaco Prinsloo, CEO of Sylvania Platinum, said the company was “confident” of achieving guided production this year of about 70,000 oz of PGMs.

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