Sylvania Platinum is the South African Platinum dump processor I highlighted last year
The company reported its third quarter earnings last week:
- Revenue up 24%
- PGM prodcution up 4% (fourth quarter of increased production)
- Cash cost down 11%
- EBITDA up 330%
The company is doing what I thought it would which is increase production, cashflow and earnings, along with lowering cost. The stock has not responded well as it is probably suffering from the perception it is caught up in the South African miners strike, which it is not. The company pretty much does not have any capital spending coming up except sustaining capital spends. Therefore as I expect PGM prices to move higher we will see cash flow and balances grow. Management has said in the past that they will be distributing excess cash to shareholders via buybacks and dividends. I continue to like the company as it has no mining risk and just processes old waste dumps.
Disclosure: I am long SAPLF.