A N N U A L R E P O R T
2024
Beyond extraction
A T E C H N O L O G Y A N D S U S T A I N A B I L I T Y P E R S P E C T I V E
S Y L V A N I A P L A T I N U M L I M I T E D
Corporate profile
The Annual General
Meeting (AGM) is
to be held on
29 November 2024.
The Sylvania Dump Operations (SDO) are comprised of
six chrome beneficiation and PGM processing plants
focused on the retreatment of PGM-rich chrome
tailings materials from mines in the Bushveld Igneous
Complex (BIC).
Sylvania Platinum is a lower-cost producer
of platinum group metals (PGMs) (platinum,
palladium and rhodium) with operations
located in South Africa.
The SDO is the largest PGM producer from chrome tailings
retreatment in the industry. In FY2023, the Company entered
into the Thaba Joint Venture (Thaba JV) which comprises
chrome beneficiation and PGM processing plants, and will treat
a combination of run of mine (ROM) and historical chrome
tailings from the JV partner, adding a full margin chromite
concentrate revenue stream. The Group also holds mining
rights for PGM projects in the Northern Limb of the BIC.
The Sylvania cash-generating subsidiaries are incorporated in
South Africa with the functional currency of these operations
being South African Rand (ZAR). Revenue from the sale of PGMs
is received in USD and then converted into ZAR.
Corporate and general and administration costs are incurred
in USD, Pounds Sterling (GBP) and ZAR.
In order to strengthen the Company’s position as a low-risk
specialist in the lower-cost production of PGMs, Sylvania
operates according to the following business priorities:
• Identifying projects that strike a balance between minimal
operational and financial risk while holding the potential
for substantial profit margins.
• Ensuring that management teams are consistently
well-equipped with the appropriate blend of skills.
• Concentrating on generating cash flow, particularly during
periods of economic uncertainty.
• Continuously embracing relevant practices and technology
to sustain the Company’s position as a lower quartile
producer.
An emphasis within the Company is placed on cash generation,
which facilitates the distribution of capital returns
to shareholders in line with the dividend policy introduced
in the 2023 financial year. In line with this policy update,
the Board has declared a final dividend of one pence per
Ordinary $0.01 Share (Ordinary Share), to be paid on
6 December 2024. This follows the interim dividend of one
pence per Ordinary Share paid in April 2024 and a special
dividend of one pence per Ordinary Share paid in June 2024,
bringing the total annual dividend to three pence per
Ordinary Share. Total dividends of $23.3 million were
paid during FY2024.
For further information please go to:
www.sylvaniaplatinum.com
Reference to further pages within this
annual report
Report navigation assistance
1
O VE R VI E W
Corporate profile
IFC
Our vision, mission, strategy and values
1
Reporting scope
4
Overview
5
Operations and exploration
6
2
S TR A TE GI C L E A DE R S H I P
Chair’s letter
10
CEO’s review
14
Environment, social and governance (ESG) update
22
3
C O R PO R A TE GO VE R NA NC E
Governance report
30
Directors’ report
34
Corporate governance
40
Audit committee report
44
4
FI NA NC I A L S TA TE M E NTS
Directors’ responsibilities in the preparation of the
financial statements
48
Independent auditor’s report
50
Consolidated statement of profit or loss and other
comprehensive income
54
Consolidated statement of financial position
55
Consolidated statement of changes in equity
56
Consolidated statement of cash flows
58
Notes to the consolidated financial statements
59
5
S H A R E H O L DE R I NFO R M A TI O N
Additional information for listed public companies
108
Glossary of terms
109
Corporate directory
IBC
A N N U A L R E P O R T 2 0 2 4 1
OVERVIEW
S T RAT EG IC LE AD E R S H IP
C OR P OR AT E G O V ER N A N C E
F I N A N C I A L STA TEM EN TS
SH A R EH O L D ER I N F O RMAT I O N
We value
the culture,
traditional rights
and society
in which
we operate
We
value the
fundamental
rights of
people
We value
the safety
and health
of all
We
respect the
environment
We value
honesty and
integrity
Values
Vision
To be the best mid-tier platinum and associated metals producer in the world.
Mission
To grow our low-cost and efficient business by leveraging our existing asset base, and continuing innovation through
existing and future strategic partnerships, while proactively considering commodity and geographic diversification.
Creating value for stakeholders by being an innovative, agile and sustainable operator of choice.
Strategy
In achieving our Vision and Mission, the Board and management operate according to four focus area:
Maintaining safe and
profitable production
Progressing Research
and Development (R&D)
Strengthening our
licence to operate
External growth
opportunities
1
2
3
4
Our vision, mission, strategy and values
Employees are at the heart of our Company
and we place their safety and health above
all else in everything we do.
We treat all people with
dignity and respect.
We act honestly and show integrity
by continuously striving toward
“doing what we say we are going to do”
and showing commitment to delivering
high performance outcomes, thus
projecting an image of professionalism
and meeting the expectations of our
colleagues, investors, business partners
and social partners.
Our actions will support the
communities in which we
work while honouring their
heritage and traditions.
We act in a manner that is
sustainable and environmentally
responsible, applying professional
and innovative methods.
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OVERVIEW
S T RAT EGI C L EADERS HI P
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SHAREHOLDER INFORMATION
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O VE RVI EW
Reporting scope
4
Overview
5
Operations and exploration
6
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Reporting scope
Overview
This report seeks to provide a
comprehensive overview of the
Company’s financial performance,
operational achievements and
non-financial performance to elucidate
the Company’s business model and
investment proposition, demonstrating
how capital is strategically deployed in
the value creation process.
The reporting scope extends beyond financial data,
encompassing sustainability efforts, corporate governance
practices and the Company’s commitment to environmental
and social responsibility. The report includes extensive
information regarding the Company’s sustainability goals,
performance metrics and initiatives, demonstrating the
Company’s dedication to creating long-term value for
shareholders while simultaneously contributing to a more
sustainable and equitable future. This annual report is intended
to serve as a valuable resource for our stakeholders, enabling
them to assess our organisation’s financial health, operational
efficiency and our ongoing commitment to responsible business
practices. The Company’s non-financial performance reporting
is guided by the parameters of the Global Reporting Initiative
(GRI), the United Nations Sustainable Development Goals
(UNSDGs) and the Sustainability Accounting Standards Board
(SASB).
The consolidated financial statements, set out on
pages
54 to 105, were approved on 9 September 2024. They include
the Company’s financial results and were prepared in
accordance with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards
Board (IASB). The consolidated financial statements represent
the ongoing activities of the Sylvania Group.
Throughout the report, financial data is reported in United
States Dollars ($/USD), unless otherwise stated, as the holding
company is incorporated in Bermuda. The Company is quoted
on the London Stock Exchange’s Alternative Investment Market
(AIM), and in accordance with the AIM Rules for Companies
(the AIM Rules), has chosen to adopt the Quoted Companies
Alliance Corporate Governance Code 2018 (QCA Code 2018)
for smaller companies. In accordance with the AIM Rules,
this was adopted and implemented from September 2018,
and a summary is available on the Company’s website
(www.sylvaniaplatinum.com). The revised code was published in
November 2023 (QCA Code 2023) and must be adopted
in respect of accounting periods commencing on or after
1 April 2024. Sylvania has opted to early adopt the QCA
Code 2023.
The Corporate Governance Statement may be found on
page 40 of this report.
This 2024 annual report presents a
review of the financial, operational and
non-financial performance of Sylvania
Platinum Limited (Sylvania, the Company
or the Group) for the 12 months ended
30 June 2024.
$81.7m
NET REVENUE
Financial highlights
$97.8m
CASH BALANCE
$13.5m
GROUP EBITDA
ANNUAL DIVIDEND
3p dividend
1p interim + 1p special + 1p final dividend
2.66c
BASIC EPS
ESG highlights
• Zero fatalities since commencing operations.
• First revegetation trial on tailings storage facilities
(TSFs) completed with second phase of trials having
commenced.
• 25% female staff complement – 1.4% increase on prior
year.
• Training and development of employees
and communities.
• 40% female representation on the Board.
Operational highlights
72,704oz (4E)
92,426oz (6E)
PGM PRODUCTION
$907/oz
GROUP CASH COST/PER 4E PGM
$1,339/oz
PGM 4E BASKET PRICE
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FAR NORTHERN LIMB
The Far Northern Limb projects include two
contiguous PGE-Ni-Cu projects, Aurora and Hacra,
located at the extreme northern end of the
Northern Limb of the BIC.
A geophysical survey and metallurgical testwork
campaign are underway for the Aurora Project. Future
drilling programmes will be defined based on the
outcomes of this work. The declaration of an
Exploration Target on the Hacra Project during
August 2024 provides sufficient information for the
Company to now evaluate various disposal options.
Operations and exploration
Exploration
Exploration assets
Operations
Sylvania Dump Operations
Thaba Joint Venture (JV)
VOLSPRUIT
Volspruit, located at the southern end of
the Northern Limb of the BIC, is a shallow
PGE-Ni-Cu deposit.
EASTERN AND WESTERN LIMBS
Cash generative, lower-cost operations on the Eastern
and Western Limbs of the BIC, South Africa. The SDO
comprise six chrome beneficiation and PGM processing
plants, treating a combination of ROM and current and
historical chrome tailings at host mine sites.
SDO: Millsell, Mooinooi, Lesedi, Doornbosch, Lannex
and Tweefontein.
TRANSFORMATIONAL THABA JV
The transformational Thaba JV will comprise chrome
beneficiation and PGM processing plants, treating
a combination of ROM and historical chrome tailings
from our JV partner, adding a full-margin chromite
concentrate revenue stream to diversify the Group’s
income and expand the Group’s access to resources.
Locality within South Africa
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S T R A T EGIC
L E ADE RS HIP
Chair’s letter
10
CEO’s review
14
Environment, social and governance (ESG)
update
22
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10 A N N U A L R E P O R T 2 0 2 4
Chair’s letter
I am pleased to address you as the new
Chair of Sylvania Platinum Limited,
following Stuart Murray’s retirement
as Non-Executive Chair at the end of
the 2023 calendar year.
Automotive demand for PGMs has
remained resilient over the last 12–18
months, bolstered by the easing
semiconductor crisis and increased
production of light-duty vehicles.
Dear Shareholder,
I am pleased to address you as the new Chair of Sylvania
Platinum Limited, following Stuart Murray’s retirement as
Non-Executive Chair at the end of the 2023 calendar year.
To those of you who know Stuart, his shoes are large ones to fill,
but I shall strive to be as diligent in leading the Company as he
most certainly was during the years of his tenure. I would also
like to express my personal thanks to Stuart for his friendship
and guidance, and to note his unparalleled knowledge of the
platinum industry. The Board and I all wish him well with
his next endeavour.
Market overview
Before setting out our vision and strategy for Sylvania, I think it
is appropriate to turn first to an overview of the market, as no
matter how well the Company manages its operations, the
vagaries of the PGM market impact directly on our bottom line
and, although I wonder whether future prices can be accurately
predicted in this time of global flux, it is still important to look at
the various elements which impact demand and supply in order
to gain some knowledge of where the prices may trend in the
near to medium term.
In May 2024, at the annual London Platinum Week, several
presentations were given on the outlook for the PGM industry.
We were pleased to read and listen to reports from major
industry analysts, which offered a comprehensive analysis,
indicating that the 2024 calendar year would be defined by
persistent supply constraints, coupled with robust demand,
leading to another year of deficits across platinum, palladium
and rhodium. However, this was balanced by an expectation
that high inventories would continue, and this would weigh
on prices. Nevertheless, the overall consensus from these
reports was that the PGM market’s long-term forecast
remained positive.
Looking at supply in a little more detail, primary mine supply
struggled amid operational challenges and subdued PGM
prices, leading to cost-cutting measures across the industry,
including the suspension of mining operations and job losses.
Secondary supply, or the recycling of PGMs, also faced
challenges, particularly from a decrease in auto catalyst scrap
recycling owing to scrapyard hoarding, legislative hurdles
and longer-term vehicle ownership.
Turning to demand, automotive demand for PGMs has
remained resilient over the last 12–18 months, bolstered by
the easing semiconductor crisis and increased production of
light-duty vehicles. There is also a belief that the expected
increase in demand for domestic electric vehicles has been
overestimated, due in part to the slow roll-out of the
infrastructure required to support these vehicles and an
increase in the demand for hybrid vehicles being stronger
than anticipated. Additionally, despite challenging conditions,
industrial demand for platinum hit record highs during this
period, driven by glass and chemical capacity expansions.
However, palladium and rhodium faced continued pressure
from substitution and thrifting strategies, owing to their
historically high prices.
With regard to prices, the consensus appears to indicate that
platinum prices will remain relatively stable for the rest of this
year, albeit on the low side, averaging $1,129/ounce. Palladium
prices are anticipated to average $1,063/ounce. This pricing
trend, combined with the market shift toward electric vehicles,
presents challenges for recyclers who have come to rely heavily
on palladium recovery. The rhodium price is expected to remain
relatively high, averaging around $5,092/ounce owing to supply
deficits.
The steep decline in the platinum, palladium and rhodium
prices since the 2021 calendar year has created margin
pressure for the sector, with around half of South African PGM
miners operating at a loss today, according to the latest industry
cost curve. Due to Sylvania’s strategy of focusing on low-cost
projects, with current production in the lowest quartile of the
industry cost curve, the Company has maintained robust
production across its asset base and has recognised an
operating profit for FY2024.
Having recognised the likely downturn in PGM prices, the
Company sought out the excellent Thaba JV opportunity in
chrome and, in the 2023 calendar year, entered into a JV
agreement between Sylvania Metals (Pty) Ltd (Sylvania Metals)
and Limberg Mining Company (Pty) Ltd (LMC), a subsidiary of
ChromTech Mining Company (Pty) Ltd (ChromTech), and we are
looking forward to adding chrome revenue to our income
stream in the near future. The major demand source for
chrome is the stainless-steel industry which recorded a 4.6%
growth year on year, boding very well for the Company in the
short to medium term.
The Thaba JV represents a significant step forward in our
growth strategy. Its successful commissioning will transform
Sylvania’s production profile, adding approximately 6,800 4E
PGM ounces and 210,000 tonnes of chromite concentrate
annually over the next decade to Sylvania’s bottom line. This
joint venture serves as a template for future collaborations,
highlighting our capability to diversify revenue streams and
create shareholder value.
Transition and growth
Since FY2017, the Company has successfully implemented
Project Echo, the Secondary PGM Milling and Flotation (MF2)
programme, which almost doubled production and significantly
extended the operational life of our PGM operations. The
increased basket price allowed us to strengthen our balance
sheet and reduce the number of shares and options in issue
from 310 million in 2013 to around 273 million currently.
Notably, we have also returned value to our shareholders
through the payment of dividends amounting to $105.0 million
since FY2018, which I believe to be a remarkable feat for an
AIM company. The recent Thaba JV marks another significant
achievement, laying a solid foundation for future growth.
However, sustaining operations and developing a new JV does
come at a cost and this next year will see a significant outflow
of cash to support this growth and sustain existing operations.
Apart from the cost of funding the development of the Thaba JV,
we must also build new TSFs to extend the operating life of our
current operations, which are rightly designed with safety and
the environment as key considerations in their design. While
accepting our responsibility in this regard and with due
consideration of tighter regulatory requirements around TSFs,
the costing of a new TSF has more than doubled over the last
five years.
Knowing that this funding requirement was on the horizon, the
Company took the prudent decision to conserve cash in order
to fund this growth and underpin the future development of
the Company. I believe this to have been a wise decision, to
Eileen Carr
Non-Executive Chair
conserve cash in the good times to maintain operations and
growth in the less than good times. The cyclical nature of
metals and pricing is part and parcel of mining, and I am a firm
believer of what goes up must come down and equally what
today is languishing in the doldrums may well be the rising
star of tomorrow.
Safety and sustainability
While the market and growth are key factors for management,
safety remains our number one priority, and we are committed
to achieving zero harm across our operations. Doornbosch’s
outstanding safety record, including 12 years of lost-time
injury (LTI) free days, exemplifies our commitment to this goal.
Sustainability and responsible business models have always
been important to the Board and form an essential part of our
business model. We will continue to invest in new TSFs and
other infrastructure in order to sustain our operations and
enhance safety and environmental standards. The designs
of the new TSFs are in accordance with the Global Industry
Standard on Tailings Management (GISTM) and we will continue
to measure our compliance against this international standard.
This is a costly undertaking, but worthwhile in that GISTM sets
a standard for the safe management of tailings facilities and
creates a path toward the goal of achieving zero harm.
Vision and objectives
Having been with Sylvania since May 2015, I would hope that
I have developed a comprehensive understanding of our
operations and mining assets, which, with the support of the
Board and senior management, positions me well to steer the
Company through this challenging time for the sector, and to
take advantage of current and future opportunities.
As Chair, my immediate priorities include guiding the Company
to meet its growth and diversification strategy. The Thaba JV has
shown how we can leverage our processing skills and resources
in a manner which will not only add value but will diversify our
The Company has
maintained robust
production across its
asset base and has
recognised an
operating profit
for FY2024
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Chair’s letter continued
metal production. I hope that we can use this JV as a template
for similar ventures within the region and possibly extend this
remit to strategic partnerships where, again, we can bring our
processing skills to the fore. In addition, I will continue the
development of both succession planning and mentorship
within the organisation, which is a crucial part of a successful
business model and will encourage senior staff to optimise
their expertise for the development of our team.
Operational and financial performance
This last year has seen a strong operational performance from
the SDO. However, unforeseen circumstances led to us falling
slightly below our full-year production target. These
circumstances included limited wage-related strikes, and a
slower-than-expected ramp-up of operations, along with lower
PGM feed grades and a decrease in associated metal recoveries.
As these matters are addressed in more detail in our CEO’s
review, I will not dwell on them further other than to say as a
Company, we remain cautiously optimistic for the future
of PGMs.
Inflation remains a global challenge, with the average inflation
rate in South Africa currently at 5.1%. We must stay vigilant in
managing our operating costs and maintaining our operational
disciplines. The basket price of PGMs is not in our control, but
we anticipate that the addition of chrome revenue from the
Thaba JV will provide a positive boost from the middle of the
2025 calendar year, provided the high chrome prices continue.
Returning value to shareholders remains a priority, with
consistent dividends paid to date and Share Buyback
programmes implemented when considered prudent to do so.
The final dividend for this year of one pence per Ordinary Share
brings the total dividend paid in the year to three pence per
Ordinary Share. While this is lower than previous years, I hope
that I have demonstrated that our funds are being used wisely
for the continued future benefit of shareholders and going
forward, dividends declared will be contingent on profitability
and aligned with the Group’s dividend policy. Prudence in
resource allocation is essential, especially given the significant
capital outlays expected over the next two years to extend the
operational life of our SDO.
Returning value to
shareholders remains
a priority
Future outlook
With the development of the new TSFs, our operations will
have an extended life of many years to come, plus the
Thaba JV offers a diversification into chrome and additional
PGM ounces and will form a template for potential new
JVs within and without the region.
Our production target for the next year is a range of
73,000 – 76,000 4E PGM ounces. This only includes a
marginal contribution from the Thaba JV as the operation
will only commence commissioning in late Q3 FY2025.
We continue to add value to our exploration assets and
are evaluating the best route for value accretion. Our
expertise remains in the processing side of mining rather
than the physical extraction and, for this reason, we remain
open to strategic opportunities that align with our
growth strategy.
While the PGM prices currently remain subdued, PGMs still
remain critical to the motor industry for both internal
combustion engines and hybrid vehicles and will continue
to play their part in the energy transition. For these reasons,
I think it short-sighted to write off the future of PGMs
and although we may not see the stellar performance of
recent years, we are confident that prices will remain at a
level that will promote continued profitable production
for Sylvania.
In conclusion
In conclusion, I would like to thank our executive team for
their continued dedication to the success of our Company.
The Thaba JV is a testament to our collaborative spirit and
expertise, and I am confident in our ability to continue to
navigate the complexities of our industry.
As we move forward, we will continue to focus on operational
excellence, prudent financial management and strategic growth
initiatives. I am excited about the future of Sylvania and the
opportunities that lie ahead.
On behalf of the Board, I would like to express our gratitude to
our hard-working employees and our host mine’s management
for their support. I want to also thank my fellow Non-Executive
Directors, namely: Adrian Reynolds and Simon Scott, for their
partnership over this last financial year, and to our Executive
Directors, Jaco Prinsloo and Lewanne Carminati, for their
continuing commitment and leadership. I would also like to
offer our thanks to you, our shareholders, for your continued
trust and backing. Together, we will overcome these challenging
times and position the Company for future success.
Thank you.
Eileen Carr
Non-Executive Chair
9 September 2024
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CEO’s review
The development of the Thaba JV
represents a major step in the
delivery of the Company’s growth
strategy, expanding Sylvania Metals’
operations and adding attributable
annual production of approximately
6,800 4E PGM ounces and introducing
210,000 tons of chromite concentrate
to the existing production profile. The
Thaba JV is progressing well, with the
first PGM and chrome production
expected in HY2 FY2025, commencing
the addition of chrome revenue to
our income stream.
Once again, our dedication to health
and safety was sustained during the
year and the goal of achieving
zero harm across all operations
remains our top priority.
Despite the current challenges facing the PGM sector with the
lower PGM basket pricing, we have performed well on our
current operations, and the rapid development of the Thaba JV
stands as a testament to our forward-looking and innovative
management approach. The SDO delivered a respectable
72,704 4E PGM ounces this year.
Once again, our dedication to health and safety was sustained
during the year and the goal of achieving zero harm across all
operations remains our top priority.
Our Doornbosch plant achieved 12 years LTI-free in June 2024,
and also achieved the remarkable milestone of being totally
injury-free for three years, while Lannex also concluded the
year totally injury-free. These are noteworthy achievements for
the respective operations and showcase Sylvania’s substantial
emphasis on safety standards.
The Company remains dedicated to delivering value to
shareholders, demonstrating strong discipline and careful
management of capital and cash resources. In line with the
Company’s dividend policy, an interim dividend and special
dividend of one pence per Ordinary Share each were paid in
April and June 2024, and a final dividend of one pence per
Ordinary Share has now been declared to be paid out on
6 December 2024. As a reminder, the dividend policy allows
for a pay-out of a minimum of 40% of adjusted free cash flow
for the financial year. The payment of dividends remains at
the discretion of the Board.
During the year, we also conducted a Share Buyback
programme in which 1.8 million Ordinary Shares ($1.3 million)
were bought back into the market and 0.9 million Ordinary
Shares ($0.8 million) were bought back from employees and for
tax purposes. Additionally, the Company received early
settlement of the loan and proceeds for the sale of Grasvally
Chrome Mine (Pty) Ltd (Grasvally), amounting to an equivalent
of $6.2 million, the special dividend, amounting to $3.3 million,
was paid from the proceeds, bringing the total dividends paid
during the year to three pence per Ordinary Share.
All capital projects were funded from cash reserves, totalling
approximately $15.8 million (ZAR296.0 million) and the
Company maintained a stable cash position of $97.8 million
at the end of the financial year.
Our goal is to ensure we maintain sufficient cash reserves
to support working capital needs, finance identified capital
projects, enable growth and exploration, and protect against
potential future challenges, all while continuing to deliver value
to shareholders. In this regard, it is therefore encouraging that
our lower-cost operations, which place us in the lowest quartile
of the industry cost curve, have enabled the Company to remain
cash generative with a healthy cash position.
The development of the Thaba JV represents a major step in
the delivery of the Company’s growth strategy, expanding
Sylvania Metals’ operations and adding attributable annual
production of approximately 6,800 4E PGM ounces and
introducing 210,000 tons of chromite concentrate to the
existing production profile. The Thaba JV is progressing well,
with the first PGM and chrome production expected in
HY2 FY2025, commencing the addition of chrome revenue
to our income stream.
The Thaba JV combines the complementary strengths of
Sylvania Metals and LMC to produce PGMs and chromite
concentrate, leveraging Sylvania’s expertise in PGM recovery
and LMC’s proficiency in fine chromite beneficiation. This
partnership aims to maximise the value of resources from
the Middle Group Reef in South Africa’s BIC while enhancing
Sylvania Metals’ commodity portfolio. With an expected return
exceeding a 20% internal rate of return and a cash payback
period of less than three years post-commissioning, the JV
promises significant financial benefits. Strategically, it aligns
with Sylvania Metals’ growth ambitions by expanding resource
access, boosting production, and strengthening distribution;
ultimately enhancing shareholder value.
Health, safety and environment
During the period, there were no significant occupational health
or environmental incidents reported and all operations have
remained fatality free since inception in 2006. Doornbosch’s
record 12 years LTI-free in addition to being totally injury-free
for three years together with Lannex achieving zero harm
during the period is testament to our commitment to a safe and
healthy environment.
Unfortunately, during FY2024, Tweefontein and Mooinooi each
experienced one LTI. Management’s proactive stance toward
safety measures, which include routine risk assessments, has
played a pivotal role in fostering a workplace ethos that places
a high priority on the wellbeing of both employees and
contractors.
The successful last quarter of the calendar year “Silly Season”
campaign, spanning from November 2023 through January
2024, effectively emphasised the significance of a hazard-free
and injury-free environment. Through a range of creative
initiatives, employees embraced a culture of mindfulness,
remaining vigilant and adhering to safety protocols, resulting
in an outstanding achievement of zero injuries throughout
the festive season.
Jaco Prinsloo
Chief Executive Officer
Exploration – Volspruit
Exploration – Far Northern Limb
Summary of year’s activity
• Updated Scoping Study undertaken to assess the
economic viability of the Project based on the updated
mineral resource statement that was published during
February 2024.
• Significant increase in Project pre-tax NPV to
$69.0 million for a 14-year LOM, compared to
$27.3 million NPV (2022 Scoping Study).
AURORA
Summary of year’s activity
• The Far Northern Limb projects include two contiguous
PGE-Ni-Cu projects, Aurora and Hacra, located at the
extreme northern end of the Northern Limb of the BIC.
• A geophysical survey and metallurgical testwork
campaign are underway for the Aurora Project. Future
drilling programmes will be defined based on the
outcomes of this work.
HACRA
Summary of year’s activity
• The declaration of an Exploration Target on the
Hacra Project during August 2024 provides sufficient
information for the Company to now evaluate various
disposal options.
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16 A N N U A L R E P O R T 2 0 2 4
CEO’s review continued
Sylvania’s annual anti-gender-based violence (GBV) campaign
further solidified a workplace culture grounded in respect and
equality. Informative sessions and open dialogues provided
employees with a profound understanding of the repercussions
of GBV, empowering them to become advocates for positive
change. This reiterates the Company’s dedication to nurturing a
workplace that champions inclusivity, ultimately contributing to
a more harmonious and supportive professional community.
Concurrently, the Company’s environmental endeavours have
propelled responsible resource management, significantly
reducing Sylvania’s ecological footprint.
Operational performance
The SDO annual production of 72,704 4E PGM ounces was 4%
lower than the prior financial year, largely due to the
slower-than-expected ramp-up of operations after the
wage-related strike action in February 2024 at our Western
operations that impacted production at Mooinooi and Millsell in
particular. The slower-than-expected ramp-up was a result of a
backlog of maintenance during the strike period due to limited
resources at the time, which ultimately resulted in lower plant
availabilities and runtime, and process stability on the Mooinooi
ROM section. Additionally, lower PGM feed grades, as well as
a decrease in associated metal recoveries related to the ore
mix treated at Lannex during the period, were also a factor.
The Western operations have since improved with enhanced
maintenance and runtime, while measures are being
implemented to address the lower grade feed material and
related recoveries at affected operations. The Lannex MF2
Project was executed during the year together with
commissioning of the flotation circuit and the fine grinding
circuit and optimisation continues. Progressive improvements
in recoveries were achieved at Lannex throughout the year.
PGM plant feed tons for the period remained flat with
1.4 million tons treated, but PGM flotation feed grades and
recovery efficiencies decreased by 3% and 1% year-on-year
respectively, primarily influenced by lower PGM feed grade
and recovery potential in the dump feed sources to Lannex,
and Lesedi.
The SDO direct cash cost per 4E PGM ounce increased by 25%
in ZAR (the functional currency) from ZAR11,355/ounce to
ZAR14,244/ounce, while the USD cash cost increased 19% to
$761/ounce against $640/ounce in the prior year due to the
4% reduction in production, the temporary purchase of
higher-grade external material for the Eastern operations that
contributed to a 10% increase which is expected to endure
until June 2025, and increased power, reagent and milling costs.
The effects of rising inflation worldwide and international
instability continue to directly impact the cost of fuel and
transport, all of which cause operating costs to increase.
During the period, the SDO implemented a new planned
maintenance system, which was successfully piloted at Millsell.
The “On Key” Enterprise Asset Management System is
currently being rolled out at Mooinooi, which aims to optimise
maintenance management planning and scheduling tasks.
It will also assist in improving plant availabilities and runtime,
resulting in improved process stability and increased
efficiencies. The maintenance system will be rolled out at
the other plants during the course of FY2025 and FY2026.
ROM feed grades at Mooinooi have been at satisfactory levels
during the period but remain a focus area for the operation.
Management continues to collaborate with the host mine in
determining the preferred source of ROM and associated
grades in order to sustain these higher grades. Higher-grade
third-party dump feed material is continuously sourced,
evaluated and, where suitable, treated at selected operations
that have low-grade resources in order to optimise the
overall PGM feed grade and profitability in the current
PGM price environment.
Reagent optimisation continues, especially at the recently
commissioned MF2 circuits, to achieve improved efficiencies
and further contribute to an increase in metal recoveries.
Focus remains on the operational aspects of the SDO TSFs by
the operations teams, the engineer on record, relevant expert
advisers and associated service providers.
Furthermore, in view of the performance of Lesedi over the past
12 months, which has been impacted by a combination of low
feed grades from current feed sources and continued subdued
PGM prices, the Company has commenced consultation with
stakeholders under Section 189A (S189A) of the Labour
Relations Act, 66 of 1995 (LRA) on the possible restructuring of
the operation. The aim of this process is to improve the overall
profitability of the SDO in the current subdued PGM price
environment and further updates on this process will be
provided in due course.
Capital projects
Capital expenditure for the year increased 9% to
ZAR296.0 million ($15.8 million) from ZAR257.2 million
($14.5 million) 2023, in line with the Group’s capital project
strategy. Capital expenditure included the $5.7 million
attributable capital on the Thaba JV, $3.3 million for new tailings
dam infrastructure, $2.1 million for the Lannex MF2 roll-out, and
$0.8 million on exploration projects. All capital projects are fully
funded from current cash reserves.
A central filtration plant project is in execution to facilitate the
conversion to dry filtered concentrate, instead of the current
slurry. This will assist in reducing concentrate transport costs
and remediate handling challenges at off-take smelters.
In order to mitigate power interruptions at Lesedi and Millsell,
which are most affected by the national power utility’s load
curtailment programme, back-up power generation projects
were initiated during FY2023. The Lesedi unit was
commissioned in February 2024. Lesedi experienced
approximately 81 hours of downtime during HY1 FY2024 due to
load curtailment (total downtime during FY2023 was 544 hours).
The installation of the Millsell standby generator was completed
during Q4 FY2024. The generators will significantly reduce
potential future power related losses at the operations.
In order to expand our operating footprint and to increase
diversification of our revenue stream by adding additional
chrome revenue, a feasibility study for a potential new
treatment facility for chrome tailings and ROM ore sources
at the Eastern operations is in progress.
Finally, in order to sustain current operations and to secure
deposition capacity for the next ten years, we are currently
busy with a build programme for new TSFs at all of our current
operations, which are rightly designed according to latest
regulatory safety and environmental standards.
Capital expenditure
for the year increased
9% to ZAR296.0 million
($15.8 million) from
ZAR257.2 million
($14.5 million) in the
2023 financial year
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CEO’s review continued
Financial performance
When analysing the financial results, it is important to note that
the Group generates revenue in USD, which are converted to
ZAR, while we incur costs in ZAR, USD and GBP. The average
ZAR/US$ exchange rate was ZAR18.71:$1 at 30 June 2024:
(FY2023: ZAR17.75:$1) and the spot exchange rate was
ZAR18.19:$1 at 30 June 2024 (FY2023: ZAR18.89:$1). The Group
net profit for the year was $7.0 million (FY2023: $45.4 million).
The average gross basket price for PGMs in the financial year
was $1,339/ounce, a 36% decrease on the previous year’s
basket price of $2,086/ounce. The decrease in the overall
PGM basket price was primarily due to a circa 51% decrease in
rhodium prices and a 38% decrease in palladium prices.
Revenue on 4E PGM ounces delivered decreased by 38% in
USD terms to $71.7 million year-on-year (FY2023: $116.6 million)
with revenue from base metals and by-products contributing
$13.0 million to the total revenue (FY2023: $13.3 million).
Net revenue, after adjustments for ounces delivered in the prior
year but invoiced in FY2024, decreased 37% on the previous
year’s $130.2 million to $81.7 million. The decrease in revenue
is as a result of the 38% drop in the basket price and 4% lower
production.
Group cash costs increased by 18% year-on-year from
$771/ounce (ZAR13,685/ounce) to $907/ounce (ZAR16,970/
ounce). Direct operating costs increased 21% in ZAR (the
functional currency) from ZAR856.9 million to ZAR1.0 billion and
indirect operating costs decreased 21% from ZAR239.5 million
to ZAR189.1 million. The decrease in indirect costs is
attributable to the reduction in mineral royalty taxes.
All-in-sustaining costs (AISC) increased by 11% to $967/ounce
(ZAR18,088/ounce) from $874/ounce (ZAR15,509/ounce).
Similarly, all-in costs (AIC) of 4E PGMs increased by 13% to
$1,168/ounce (ZAR21,852/ounce) from $1,033/ounce
(ZAR18,345/ounce) recorded in the previous period as a
result of the lower ounce production during FY2024.
The Group spent $15.8 million (FY2023: $14.5 million) on capital,
comprising of $9.3 million improvement and stay in business
capital, $5.7 million attributable capital on the Thaba JV, and
$0.8 million on exploration projects. All capital projects are
fully funded from current cash reserves.
Basic earnings per share (EPS) decreased 84% to 2.66 US cents
per share from 17.01 US cents per share in FY2023.
The cash balance on 30 June 2024 was $97.8 million (FY2023:
$124.2 million). This balance excludes $1.2 million restricted
cash (FY2023: $0.8 million) relating to guarantees. A new
cash guarantee of $0.3 million was issued to Eskom during
FY2024 relating to the Thaba JV.
The impact of exchange rate differences for the period
amounted to $0.7 million profit, as a result of the net
appreciation of the ZAR to the USD during and at the end
of FY2024.
The Company remains debt-free with sufficient cash holding
to allow for continued funding of capital expansion projects
as identified.
For a comprehensive overview of the financial performance
of the Group, please refer to the Directors’ report and the
accompanying consolidated annual financial statements.
Mineral asset development
The Group holds approved mining rights for three PGM–base
metal projects on the Northern Limb of the BIC in South Africa.
Following on from the exploration results and resource
statement that was released in FY2023, the Company continues
to develop these projects through additional technical studies
and reinterpretation of historical information. A Scoping Study
was finalised for Volspruit, and an updated exploration
programme is being developed for the Aurora project. This
additional information will assist the Company in ascertaining
how best to develop these projects.
Volspruit Project
Post year-end, SRK Consulting finalised the Scoping Study for
Volspruit, with the final report released in August 2024. The
study was undertaken to assess the economic viability of the
project based on the updated mineral resource statement that
was published during February 2024. The Volspruit Scoping
Study resulted in a significant increase in project pre-tax net
present value (NPV) to $69.0 million for a 14-year life of mine,
compared to $27.3 million NPV in the original study previously
(2022 Scoping Study).
Contributions from rhodium and the additional resources
from the South ore body are now included as well as updated
input costs.
Recommendations from the Scoping Study are being assessed,
and where possible, implemented. The outcomes will be
analysed alongside the results from the metallurgical test work
completed during FY2024, and a decision will be made on how
to progress the project. On the regulator front, steady progress
is being made in the permitting process necessary for the
existing mining right.
Local Economic Development projects are gaining traction and
the Water Use Licence Application (WULA) for mining and onsite
processing operations, as well as the updated Environmental
Impact Assessment (EIA) submissions, are expected to be made
in the first quarter of FY2025, allowing for a comprehensive
public engagement process to be completed.
Far Northern Limb projects
An exploration programme for Aurora has been compiled based
on the reinterpretation of historic drilling. A geophysical survey
has been proposed to cover the strike length of the project and
assess the continuity of the mineralisation, as well as gain a
greater understanding of the structural setting of the area.
Processing test work has been proposed for a set of samples
from the most recent drilling campaign at Aurora to understand
the metallurgical characteristics of the mineralised zone.
Based on the outcomes of the geophysical and metallurgical
test work, it will be determined if an additional borehole drilling
programme will add further value to the project and be
designed accordingly.
In terms of the Hacra Project, the declaration of an exploration
target during August 2024 provides sufficient information for
the Company to now evaluate various disposal options. Sylvania
does not anticipate incurring any significant further exploration
or study costs on this particular project, where the
mineralisation occurs at depth, compared to shallow
occurrences at Volspruit and Aurora.
ZAR296.0m
CAPITAL EXPENDITURE
$7.0m
GROUP NET PROFIT
2.66 US cents per share
BASIC EARNINGS PER SHARE
-84%
(FY2023: 17.01 US cents per share)
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20 A N N U A L R E P O R T 2 0 2 4
CEO’s review continued
Grasvally
The Company agreed to an early settlement, to the amount of
ZAR115.0 million ($6.2 million on date of payment), of the loan
and sale price related to the sale of Grasvally to Forward Africa
Mining (Pty) Ltd (FAM) which was received in April 2024. The
original contractual repayment terms of capital and interest was
15 equal quarterly instalments, commencing at the end of the
quarter following the first anniversary of the effective date. As a
result of the early settlement, the Company agreed to write off
the interest accrued.
Following receipt of the early settlement proceeds, the
Company declared and paid a special dividend of one pence
per Ordinary Share, amounting to $3.3 million in aggregate.
Corporate activities
Dividend approval and payment
The Board declared an interim dividend of one pence per
Ordinary Share in February 2024, which was paid out on
5 April 2024. The free cash flow forecast was adjusted for the
capital spend on the Thaba JV as this was funded from
previously generated cash held for growth and expansion
opportunities.
In accordance with the dividend policy, I am happy to announce
that, despite the challenging year we have faced, the Board
has declared the payment of a final cash dividend for FY2024
of one pence per Ordinary Share, payable on 6 December 2024
to shareholders on the register at the close of business on
1 November 2024 with an ex-dividend date of 31 October 2024.
Further to the dividends paid to shareholders, in accordance
with the Company’s Employee Dividend Entitlement Plan (EDEP)
whereby eligible employees receive an equivalent dividend paid
on shares bought back by the Company in the market and
ring-fenced for the EDEP, a total of $0.7 million was paid out
during the financial year.
Transactions in own shares
Returning capital to shareholders remains a key element of
the Company’s strategic goals and it will continue to review to
do so, when appropriate and value accretive.
At the commencement of the 2024 financial year, shares in
the Company were valued at 78.00 pence per Ordinary Share.
The share price has since depreciated 26% to 58.00 pence per
Ordinary Share, largely influenced by the macro-economic
environment and volatile PGM prices. As stated previously,
even though a great many of the factors influencing the share
price are outside of the Company’s control, management always
pays close attention to these and will continue to manage the
business in the best way possible to provide maximum value
for shareholders.
1,235,000 bonus share awards vested and were exercised by
employees and persons displaying management responsibilities
(PDMRs). Of the 1,235,000 shares that were exercised,
425,000 related to PDMRs. The 1,235,000 shares exercised
amounts to $0.9 million, of which $0.3 million relates to
PDMRs and $0.6 million relates to employees. 448,150 shares
were immediately repurchased by the Company at the vesting
price of 70.00 pence per Ordinary Share in order to satisfy
the tax liabilities of PDMRs and employees, and a further
236,600 shares were repurchased at the 30-day VWAP of
76.50 pence per Ordinary Share.
During the period, the Company conducted an on-market
Share Buyback programme to purchase Ordinary Shares of
the Company’s issued share capital, up to a maximum
consideration of $3.0 million. A total of 1,843,000 Ordinary
Shares were bought back after the launch of the Share Buyback
programme at an average price of 57.21 pence per Ordinary
Share, equating to $1.3 million in aggregate. An additional
166,000 Ordinary Shares were bought back from employees at
the 30-Day VWAP of 54.95 pence per Ordinary Share equating to
$0.1 million.
A total of 2,693,750 Ordinary Shares were bought back by the
Company during FY2024 at an average price of 62.18 pence
per Ordinary Share, equating $2.1 million in aggregate.
5,633,725 Ordinary Shares held in treasury were cancelled
during the period, such that the Company’s issued share capital
as at 30 June 2024 is 273,366,725 Ordinary Shares, of which a
total of 11,765,211 Ordinary Shares are held in treasury.
Therefore, the total number of Ordinary Shares with voting
rights in Sylvania is 261,601,514 Ordinary Shares.
Notification of transaction by PDMR
Eileen Carr, Non-Executive Director and Chair, purchased
60,000 Ordinary Shares in the Company at 49.74 pence per
Ordinary Share during the period. Following this transaction,
her shareholding in the Company totals 130,000 Ordinary
Shares, representing 0.05% of the total number of Ordinary
Shares with voting rights.
Additionally, Adrian Reynolds, Non-Executive Director,
purchased 30,000 Ordinary Shares in the Company at an
average cost of 73.24 pence per Ordinary Share during the
period. Consequently, his shareholding in the Company totals
50,000 Ordinary Shares, representing 0.02% of the total number
of Ordinary Shares with voting rights.
Appointment of new Chair
Stuart Murray stepped down as Chairman of Sylvania with effect
from 31 December 2023. After more than a decade of service
as Non-Executive Chairman, Mr Murray decided to focus
more time on his other business interests. The Board voted
unanimously to appoint Eileen Carr, who had been serving
as Non-Executive Director and Chair of the audit committee,
as the Chair of the Board with effect from 1 January 2024. Eileen
is a seasoned Board member who has intimate knowledge of
the Company and management team, and her forward-thinking
leadership, expertise and steadfast commitment align perfectly
with the Company’s values and objectives.
Thank you and outlook
The Board is happy with the results across most of the
operations, nevertheless, shall continue in its commitment
toward improvement over the coming year. I believe the
operations will deliver a solid production performance in
FY2025 and, in line with this, Sylvania will target an annual
production of between 73,000 to 76,000 4E PGM ounces for
the coming financial year.
The ongoing challenge of weak PGM prices, combined with
escalating input costs, remains a significant concern for the
Board and the broader industry. Despite these headwinds, as
detailed in this report, we have maintained a low-cost strategy,
controlling production costs effectively, and have consistently
adhered to a prudent cash management strategy, ensuring
that we remain cash generative.
I want to express my deep appreciation for the outstanding
efforts of our management and production teams, as well as
our dedicated employees, who have consistently upheld our
commitment to safe working practices and strong production
performance. I also extend heartfelt thanks to you, our valued
shareholders, for your unwavering support of the Company
over the years. Despite the current challenges facing the
PGM sector, we remain optimistic about the future and
look forward to continuing this exciting journey with you.
The commencement of the production at the Thaba JV in the
second half of FY2025 will mark the official dawn of a new
era for the Company and all its stakeholders.
Jaco Prinsloo
Chief Executive Officer
9 September 2024
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22 A N N U A L R E P O R T 2 0 2 4
Environment, social and governance (ESG) update
It is one that conducts its operations
responsibly, minimising its
environmental footprint while
contributing positively to the
wellbeing of the communities in
which it operates.
Sustainability and responsible resource management is
embedded into Sylvania’s business model and the way the
Company operates. The Company focuses on processing
materials that would have otherwise become mine waste to
extract valuable additional minerals such as chrome and PGMs
which are a critical input for the green transition. Simply put,
Sylvania generates value from waste.
This way of working significantly reduces environmental impacts
by reducing the volume of waste generated, limiting the need
for and size of TSFs and minimising the risk of seepage. It also
means Sylvania is helping to clean up wider industry legacy
waste facilities. Many of the historic or legacy TSFs the Company
processes were constructed to older and lower environmental
standards. By reprocessing these facilities, the tailings can be
responsibly redeposited in better constructed, safer and more
environmentally friendly facilities.
The following pages set out Sylvania’s approach to ESG
management and the steps the Company plans to take to
translate its commitments into action that delivers sustainable
impact and value for the business and its stakeholders.
For Sylvania, good ESG management is
nothing new, it is at the core of the
business. The Company believes that a
sustainable business is one that fosters
a diverse and inclusive workforce where
employees can thrive.
Environment
Sylvania’s approach to environmental management is to both
meet its obligations under South African law and align with
industry best practice standards. This approach delivers value
through cost savings, reduced future liabilities and helps to
develop the stakeholder relationships needed to ensure the
Company’s social licence to operate.
Climate change
Sylvania recognises its responsibility to assess both the
Company’s impact on climate change, and the potential impacts
of a changing climate on the Company. To better understand
the Company’s climate-related risks, Sylvania undertook a
strategic climate change risk assessment in FY2023, which
considered both physical and transitional climate risks.
Sylvania’s biggest source of emissions is the electricity it uses to
power the processing plants. The Company’s primary electricity
sources are the South African National Grid, which is
predominantly coal-fired, and diesel-fired generators which are
used as back-up power sources. To reduce overall emissions,
Sylvania is working to improve energy efficiency, and the
Company is investigating the feasibility of integrating renewable
energy sources into its overall energy mix. In FY2024, Sylvania’s
total Scope 1 and 2 emissions were 101,794 tons of carbon
dioxide equivalent (tCO2e), this is an increase of approximately
2% over the previous year. The year-on-year increase in
emissions is attributed to the increased data maturity of the
Company’s emission calculations for FY2024 which include
acetylene use and also separate and categorised diesel use into
stationary and mobile use providing a more fulsome picture
and improves the overall accuracy of calculations. Further to
the data maturation, the Company added the Lannex MF2 plant
resulting in increased power use, and the installation of the
generator at Lesedi increased the diesel use for the year.
As energy efficiency efforts are implemented and increase,
the Company expects greenhouse gas (GHG) emissions to
decrease, with overall energy and emission intensity rates
continuing to be tracked.
Table 1 – Total emissions (tCO2)
FY2024
F Y2023
101,794
99,387
Water
The SDO plants rely on a steady, stable and secure supply
of water to function effectively. Water is also a resource the
Company must share with other users including local
communities. The Company’s approach to water management
balances ensuring it has the water necessary to function
effectively, without negatively impacting access for other users
in the watershed. Sylvania’s operations are integrated into the
water distribution systems of their host mines, and the plants
are designed as closed-circuit systems. This means they are
designed to maximise the volume of water reused and recycled,
thereby reducing the volume of additional water which needs
to be withdrawn from the environment and that there is
zero liquid discharge.
Similar to Sylvania’s GHG emissions, the Company is working
on a number of initiatives to improve the overall maturity of
the water information and data it collects and discloses.
During FY2024, the Company worked to develop a
comprehensive water balance, and also implemented an
interactive dashboard to provide better oversight of water
flows and use across each site which assists with and helps
to improve overall decision making. This includes monthly
monitoring of all the inputs parameters and flows, including
both modelled and simulated results. The below table sets
out the Company’s total water consumption during the year.
It is important to note that due to the changes in data collected
and water-use calculations described above, the below
information is not directly comparable year-on-year. However,
following this data maturation work, Sylvania will be able to
better provide comparable information in future to track
performance and use efficiency.
Table 2 – Total water consumption (m3)
FY2024
F Y2023
10 115 827
12 771 012
Alongside efforts to improve water-use information collection
and data reporting, during FY2024 Sylvania also moved forward
with phase three of its water management efforts, which
focuses on working to continuously improve water
conservation. One of the key initiatives completed in this regard
during FY2024 is the development of scavenger boreholes at
Mooinooi, Lesedi and Tweefontein, these boreholes enable us
to reuse any seepage water that may occur and thereby reduce
the need for make-up water to be introduced into the system.
Further water conservation projects are planned and will be
introduced in a phased manner over time or at new
installations. These include lined tailings facilities.
Tailings management
Sylvania is committed to the responsible management of its
TSFs to prevent unfavourable or negative impacts on health,
safety, the environment and communities. The TSFs Sylvania
manages are designed to operate with an acceptable level of
risk, fully compliant with the Department of Mineral Resources
and Energy (DMRE) Mandatory Code of Practice for Mine
Residue Deposits (DME 16/3/2/5-A1). Sylvania’s approach is
based on a principle of zero harm to people and
the environment and is informed by and aligns to the principles
of the GISTM. Ensuring responsible tailings management,
regulatory compliance and managing the escalating cost of
tailings facilities all while maintaining a cash-generative and
profitable business is no small challenge. However, the positive
effect on the environment by what Sylvania does remains the
key outcome.
TSF rehabilitation
Over the past four years, Sylvania has been working with
environmental and agricultural engineering consultancy
OMI Solutions on a project to find a sustainable, efficient and
cost-effective way to rehabilitate its TSFs following the risks
identified with bringing in topsoil. The laboratory and onsite
trials at Tweefontein investigated the potential for introducing
an organic growth medium to facilitate growth on the tailings.
Due to limited access to water in this area, process water was
also trialled as an alternative to tap water for irrigation. To date,
the addition of organic matter to tailings has yielded the best
results, with trial areas showing improvements in drainage,
water holding capacity, nutrient levels and overall plant cover.
Beyond these improvements, the project has also helped to
deliver improved biodiversity onsite with locusts, dragonflies
and butterflies seen in the trial area. Following the successful
trial at Tweefontein, a second trial at the Western operations
has commenced.
Sylvania’s biggest
source of emissions
is the electricity it
uses to power the
processing plants
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24 A N N U A L R E P O R T 2 0 2 4
Environment, social and governance (ESG) update continued
Social
Health and safety
Ensuring Sylvania’s people return home to their loved ones
healthy and safe each day is a foundational Company value.
A safety-first mindset is engrained throughout operations and
codified in the Company health and safety policy. Safety is a
standing agenda item at executive committee meetings and
safety performance is discussed at Board meetings. During
FY2024, Sylvania recorded two LTIs and a lost-time injury
frequency (LTIFR) rate of 0.19 per 200,000 hours worked. While
the number of LTIs remains the same year-on-year, it
represents a 5% improvement compared to FY2023 as the
Company’s total workforce (and thus number of total hours
worked) increased. The number of first aid and medical
treatment injuries also decreased during FY2024, and the
Company maintained its fatality-free record.
Table 3 – Safety performance
FY2024
F Y2023
Lost-time injuries
2
2
Lost-time injury
frequency rate
0.19
0.20
Medical treatment
cases
1
2
First aid cases
4
8
Making safety personal
Across all operations, Sylvania has worked to make safety
personal. The Company has implemented ‘Making Safety
Personal’ campaigns which teach that staying safe on site is
the responsibility of everyone, not just the safety department.
It also empowers people to refuse unsafe work and stop others
who are not following our safety protocols.
The programme also embeds
the PAUSE approach
to undertake regular micro-risk
assessments:
P
Pause before you start
A
Assess possible hazards
U
Understand how to proceed safely
S
Share your plan with others
E
Execute the activity safely
Training and development
Sylvania constantly invests in training to develop and enhance
the knowledge and skills of its employees to ensure the
Company can meet its business and operational goals.
The Company’s commitment to upskilling people is set out in
the training and development policy. The training opportunities
Sylvania provides include a range of formal and informal
approaches including skills shadowing and on-the-job
development; technical training for specific job functions;
formal training and development programmes; and
educational bursaries. In total, Sylvania provided 3,286 training
interventions in FY2024. Of these, 1,160 were external training.
The Company also provided 21 staff bursaries and skills
training to 11 community members during the year. Since
FY2022, Sylvania has provided skills and vocational training
to 35 local community members.
Diversity, equity and inclusion
Sylvania believes that a diverse workforce is a better workforce,
and that diversity provides the wide range of thinking and
problem-solving skills necessary to run a successful company.
It also provides a deeper talent pool from which to select from.
The Company’s commitment to providing a diverse workforce
and an equitable and inclusive working environment is set
out in the following policies:
Recruitment and selection policy which sets out the
processes to be followed throughout the recruitment and
selection processes. The policy refers to all applicable
national legislation and includes commitments to fairness,
equity, confidentiality and human dignity.
Employment equity policy which sets out Sylvania’s
commitment to building and maintaining a diverse
workforce, and providing equal opportunities for
all members of the workforce.
Harassment policy which details the Company’s
commitment providing an environment where all
people involved with the business are treated with dignity
and respect.
In FY2024, 163 members of our workforce (25%) were women.
This represents an increase of 1.4% compared to FY2023. At a
Board and senior management level, two members (40%) of our
Board are women. 91% of our total workforce are historically
disadvantaged persons (HDPs).
Taking a stand against gender-based violence
Sylvania has a zero tolerance for GBV and is committed to
addressing and eradicating it from the Company’s operations
and host communities. To do this, the Company ran awareness
campaigns focusing on providing education to deter instances,
as well as empowering victims to speak out and report
incidents. During FY2024, Sylvania was asked to partner with
and support the local South African Police Force to expand
and further roll out the GBV awareness programme.
Governance
Contributing to national and local development
Sylvania plays an important role in the growth and development
of South Africa, and the Company aims to create shared value
for a prosperous future. The Company’s commitment is set
out in the corporate social investment policy which provides
guidelines for the Company’s social investment practices.
The policy compels Sylvania to develop and invest in initiatives
in the communities wherein it operates to deliver sustainable
development and socio-economic upliftment. The policy also
includes criteria for funding which include prioritisation of the
involvement of not-for-profit organisations, and initiatives
that focus on aiding previously disadvantaged communities
and people.
In FY2024, Sylvania employed 122 new employees of which
40 (33%) new hires were people from host and neighbouring
communities. 11.1% of the Company’s total supply spend is
invested in community suppliers. Sylvania is also committed
to fair and transparent payments of tax.
Table 4 – Financial contributions
FY2024
F Y2023
ZAR
Z AR
Salaries and wages paid
294,681,797
264,673,328
Employee dividend participation scheme
12,403,950
17,010,114
Contributions and employee tax paid
131,587,926
124,732,514
Income tax
58,535,304
367,927,842
Value added tax (VAT)
86,687,959
239,263,797
Dividend withholding tax
49,868,421
47,544,341
Mineral royalty tax
25,975,281
99,345,721
Community suppliers
119,343,178
118,023,036
Total suppliers
1,064,414,361
1,061,377,300
Community supply as a % of total supplier spend
11.21%
11.12%
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26 A N N U A L R E P O R T 2 0 2 4
Environment, social and governance (ESG) update continued
ESG governance
Ultimate responsibility for ESG management at Sylvania
resides with the Board of Directors. The Board is comprised
of three Independent Non-Executive Directors and two
Executive Directors. Management of key strategic decisions
that may impact our ESG priorities throughout the business
or on the ground at a project or operation is driven by our
senior leadership team and guided by the CEO. ESG is
embedded throughout the business with relevant decisions
taken at monthly operational meetings, quarterly technical
reviews, monthly risk and safety executive committee
meetings, and monthly social and ethics executive
committee meetings.
Sylvania is not only committed to implementing the highest ESG
standards, but also to having the plans, procedures, metrics and
targets in place to ensure these commitments are met.
The approach includes a set of policies related to
sustainability that have been developed to meet or exceed
the requirements of applicable national laws and
regulations, harmonise with the 10 principles for sustainable
development outlined by the International Council on
Mining and Metals (ICMM), and thereby also integrate
the ambitions of the United Nations Sustainable Development
Goals (UNSDGs).
Some of Sylvania’s key ESG governance policies include:
Code of Ethics policy which sets out Sylvania’s approach
to good governance and ethical behaviour. It details the
standards and principles to which the Company holds
all employees, suppliers and itself accountable. It includes
a best practice approach for whistleblowing,
anti-discrimination and conflicts of interest.
Anti-bribery and corruption policy which sets out a
zero-tolerance approach to any form of bribery or
corruption and details the processes and procedures to be
followed to minimise the risks of bribery and corruption
occurring within Sylvania’s value chain.
Sylvania employees, contractors, third parties and community
members can report potential violations of the Code of
Ethics and anti-bribery and corruption policy confidentially
and anonymously through several channels, including the
whistleblowing hotline which is operated by an
independent provider.
Modern slavery
Modern slavery occurs in almost every country in the world.
The nature and extent of modern slavery means that it is hard
for any large company to deny its potential within its operations.
Sylvania has a zero-tolerance approach to all forms of modern
slavery and is committed to eliminating and preventing modern
slavery and human rights abuses from occurring at its
operations or within the supply chain.
Sylvania is not only
committed to
implementing
the highest
ESG standards, but
also to having the
plans, procedures,
metrics and targets
in place to ensure
these commitments
are met.
Governance report
30
Directors’ report
34
Corporate governance
40
Audit committee report
44
03
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Governance report
AJ Reynolds
Independent Non-Executive
Director
Mr Reynolds joined the Board on 1 August
2021 and has over 40 years’ experience
in the mining and minerals industry,
commencing his directorship career in
2010 at Morila, a Randgold Resources
subsidiary. He is currently a Director
of Resolute Mining Limited and has
previously held directorship positions at
Mkango Resources Limited, Somilo SA (a
Randgold Resources subsidiary), Aureus
Mining Limited, Digby Wells Environmental,
Geodrill Limited, Acacia Mining Plc and
GT Gold Corporation. Mr Reynolds is a
fellow of the Geological Society of South
Africa. He is a registered Professional
Natural Scientist and holds a Master’s of
Science in Geology obtained from Rhodes
University in 1979, as well as a Graduate
Diploma in Engineering obtained from the
University of Witwatersrand in 1987.
SPECIAL RESPONSIBILITIES
• Chair of the remuneration committee;
• Chair of the technical committee; and
• Member of the audit committee
SJ Scott
Independent Non-Executive
Director
Mr Scott joined the Board on 1 January
2022 and has over 25 years of experience
in the mining industry, including 15 years
in platinum group metals, with Anglo
American Platinum and Lonmin, where
he held a number of senior positions,
including CFO and CEO. He currently serves
on the boards of First Quantum Minerals
Limited and of Gemfields Group Limited
(effective 1 July 2024), and has previously
held a non-executive directorship position
at AngloGold Ashanti Holdings plc, and
executive directorships at Lonmin plc,
Aveng Limited, Anglo American Platinum
Limited, JP Morgan Chase and Chubb
Holdings Limited. Mr. Scott is a Chartered
Accountant and professional member of
the South African Institute of Chartered
Accountants. He holds both a Bachelor of
Accountancy and Bachelor of Commerce
degree obtained from the University of
Witwatersrand and has also completed a
management development programme at
the University of Cape Town.
SPECIAL RESPONSIBILITIES
• Member of the audit committee (1 July 2023
to 31 December 2023); and
• Appointed as Chair of the audit committee
from 1 January 2024
E Carr
Independent Non-Executive
Chair
Ms Carr joined the Board of Sylvania
Platinum Limited on 1 May 2015 and
was appointed as Chair of the Board on
1 January 2024. She is a Chartered Certified
Accountant with an MSc in Management
from London University and is a SLOAN
Fellow of London Business School. Ms Carr
has over 35 years of experience within the
resources sector having worked worldwide
on a host of large-scale mining operations.
She was appointed Finance Director of Cluff
Resources in 1993 and has, since that time,
held several executive directorships in the
resources sector, including CFO for
Monterrico Metals plc, the AIM-listed copper
exploration company developing the
Rio Blanco project in Peru. Her first
non-executive role was for Banro Corp in
1998 and, more recently, she has been a
Non-Executive Director for Bacanora
Lithium Plc. Currently, Ms Carr is
Non-Executive Chair of Oriole Resources Plc.
SPECIAL RESPONSIBILITIES
• Chair of the audit committee (1 July 2023
to 31 December 2023); and
• Appointed as Chair of the Board as from
1 January 2024
JJ Prinsloo
Chief Executive
Officer
Mr Prinsloo has been appointed as
CEO and admitted to the Sylvania Board
since March 2020. Since January 2012, he
has served in senior positions at Sylvania,
initially as Executive Officer: Operations
and as Managing Director of the South
African Operations from March 2014, until
his appointment to his current position.
Prior to joining Sylvania, Mr Prinsloo was
principal metallurgist at Anglo American
for Anglo Operations Limited, following
eight years at Anglo American Platinum
Limited from 2002 in various senior
metallurgical positions across the Group.
During the past 20 years in the mining
industry, he has been exposed to various
operational and technical aspects of both
the South African and international mining
landscape and he has gained experience in
both the precious and base metals sectors.
Mr Prinsloo is a metallurgical engineer
and holds a Bachelor of Engineering in
Metallurgy from Pretoria University,
a Postgraduate Diploma in Business
Administration and an MBA from the
Gordon Institute of Business Science (UP).
SPECIAL RESPONSIBILITIES
• Chief Executive Officer; and
• Member of the technical committee
L Carminati
Chief Financial
Officer
Ms Carminati is a qualified Chartered
Accountant and holds a Postgraduate
Certificate in Mining Tax. She joined
Sylvania in 2009 and in 2011 was
appointed as Executive Officer: Finance
for the South African operations before
being appointed as CFO and admitted to
the Sylvania Board since March 2020.
She has gained substantial and diverse
experience in the various aspects of
financial management at a senior level,
with a particular focus on compliance,
governance and financial reporting.
She has also taken a leadership role
in corporate finance transactions.
SPECIAL RESPONSIBILITIES
• Chief Financial Officer
Directors
The names of the Directors who held office during, or since the end of, the financial year and until the date of this report, are
as follows:
SA Murray (Stepped down as Chair of the Board on 31 December 2023)
(Independent Non-Executive Chair)
E Carr (Appointed as Chair of the Board on 1 January 2024)
(Independent Non-Executive Director)
JJ Prinsloo
(Chief Executive Officer)
L Carminati
(Chief Financial Officer)
AJ Reynolds
(Independent Non-Executive Director)
SJ Scott
(Independent Non-Executive Director)
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Governance report continued
Meetings of Directors
During the financial year under review, there were three formal meetings and four information sessions. Strategy discussions now
form part of all Board and Board Information meetings. All other matters that require formal Board resolutions were dealt with via
written circular resolutions and conference calls. In addition, the Directors met on a formal basis at regular intervals during the year
to discuss the Group’s affairs.
The number of formal meetings of the Group’s Board of Directors attended by each Director was:
Board
meetings
Audit committee
meetings
Remuneration committee
meetings
Information
meetings*
Number of
meetings
eligible
to attend
Number of
meetings
attended
Number of
meetings
eligible to
attend
Number of
meetings
attended
Number of
meetings
eligible to
attend
Number of
meetings
attended
Number of
meetings
eligible to
attend
Number of
meetings
attended
SA Murray
2
2
1
1
1
1
1
1
JJ Prinsloo
3
3
–
4
–
3
4
4
L Carminati
3
3
–
5
–
3
4
4
E Carr
3
3
2
5
3
3
4
4
AJ Reynolds
3
3
5
5
3
3
4
4
SJ Scott
3
3
5
5
–
3
4
4
* 1x nominations committee meeting, 1x Strategy meeting, 1x Board Information meeting and 1x Budget meeting. Technical committee formed in April
2024, no formal meetings held before 30 June 2024.
Directors’ interest in shares and options
The following relevant interests in the shares and options of the Company or related body corporate were held by the Directors as at
the reporting date:
Shares and options
Common
shares
JJ Prinsloo
1,540,144
L Carminati
1,398,331
E Carr
130,000
AJ Reynolds
50,000
SJ Scott
20,000
Directors and key management personnel
The key management personnel of the Group are the Directors of the Company and those executives who report directly to the Chief
Executive Officer or as determined by the Board. Details of Directors and key personnel remuneration are as follows:
Short-term benefits
Share-based
payment²
Cash salary/
consulting
fees
Bonus¹
Directors’
fees
Equity
shares/
bonus shares
Total
$
$
$
$
$
Director
2024
–
–
62,500
–
62,500
SA Murray*
–
–
62,500
–
62,500
JJ Prinsloo
302,544
132,299
75,000
49,184
559,027
L Carminati
271,114
93,150
75,000
40,801
480,065
E Carr
–
–
117,500
–
117,500
AJ Reynolds
–
–
81,250
–
81,250
S Scott
–
–
80,000
–
80,000
Sub-total
573,658
225,449
491,250
89,985
1,380,342
Other key management
1,743,273
310,074
–
209,483
2,262,830
Total
2,316,931
535,523
491,250
299,469
3,643,172
* SA Murray stepped down as Chair of the Group in December 2023.
1 Cash bonuses were awarded to Directors and key personnel based on individual performance.
2 Share-based payments include shares issued and bonus shares granted.
Indemnification and insurance of Directors and Officers
During the year, the Company paid premiums in respect of a contract insuring all Directors and Officers of the Company against
liabilities incurred as Directors or Officers. Due to confidentiality clauses in the contract the amount of the premium has not been
disclosed. The Company has no insurance policy in place that indemnifies the Company’s auditors.
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32 A N N U A L R E P O R T 2 0 2 4
Directors’ report
Your Directors present their report on the
consolidated entity (the Group) consisting of
Sylvania Platinum Limited (the Company or Sylvania)
and the entities it controlled at the end of, or
during, the financial year ended 30 June 2024.
Sylvania is a limited company incorporated and domiciled in Bermuda. Unless
otherwise stated, the consolidated financial information contained in this report
is presented in USD.
Principle activities
The principal activity of the Group is the low-cost extraction of PGMs from chrome dumps and current arisings, as well as investment
in mineral exploration. Further information is provided in the CEO’s review.
Business review
Principle risks and uncertainties
The Group is exposed to a variety of risks both in the mining and exploration industry as well as various other non-industry specific
risks. The Board and the audit committee guide risk management and the alignment thereof with the Group’s risk and overall
strategy. However, all employees should be made aware of internal and external risk factors.
The Board and management recognise that the risks are more complex and interlinked than before, hence risk assessments are
performed on an ongoing basis by those members of the management team responsible for risk management. Identified risks are
linked to the Group’s business plan and strategy to ensure that the necessary mitigating factors are put in place. A risk register is
maintained for all principal risks, which is reviewed and considered by the Board and management on a regular basis. A minimum
of two formal risk workshops are held annually and considered in all safety, operations and executive meetings. Short-term and
long-term risks and the effect thereof on the Group’s business plan and strategy are assessed, including extraordinary risks.
The Board also considers financial indicators including cash availability, solvency and liquidity, key financial ratios, market and
commodity risk as well as inflation and interest rate risk. The Group’s ability to continue as a going concern is formally assessed
bi-annually and as part of the annual budgeting process. Further consideration of the Group’s solvency and liquidity ratios are
performed when dividend payments are made.
Principal risks described below are known risks, however risks may also exist that the Board and management are not aware of.
The disclosure below is not in any particular order of importance or relevance and immaterial risks are not noted.
Geopolitics and economics
Risk and impact
Mitigation
The global mining industry has faced challenges that are both
unprecedent but also familiar. Political instability and geopolitical
uncertainty always play an important role in the mining industry.
The tension between China and the United States, the ongoing
war in Ukraine and the Middle East as well as the introduction of
new laws and elections in key countries emphasise that mining
companies must remain vigilant to geopolitical risks and
opportunities. As a result of the global uncertain economy,
commodity prices remain at the lower end of the spectrum,
exchange rates remain volatile, and increased interest rates
and cost bases continue to be challenging.
Logistical constraints for bulk commodity exports, a poorly
organised cadastral system, challenges with illegal mining
compromising the safety of and viability of mining operations
as well as a shortage of critical skills add to the pressure that
mining companies in South Africa are facing.
The Board and management constantly monitor the market in
which the Group operates. The medium- and long-term strategies
include diversification, both vertically and laterally, in terms of
services, technology, research and development as well as new
and long-term partnerships. The multi-layered diversification will
enable the Company to capitalise on the potential of Africa
becoming an alternative supplier of PGMs in the wake of the war
in Ukraine and sanctions against Russia.
The Board and management monitor the market in which the
Group operates, and the Group makes use of external advisers
to ensure optimal management of foreign exchange exposure.
Cash management is aligned with the treasury policy which
includes detailed long- and short-term cash flow forecasts.
Cash is held in ZAR for the operational and capital requirements
expenditure and surplus cash is held in USD to limit the impact
of exchange rate fluctuation.
Environmental, social and governance
The expectations of investors and stakeholders continue to increase, and it is becoming more important to balance business goals
with ESG priorities. Companies tend to focus more and more on achieving a net-positive impact which gives them a competitive
advantage in terms of improved access to capital, a healthier talent pipeline and a stronger licence to operate. Transparency drives
trust and companies need to focus on disclosing the relevant financial and non-financial value that they bring to communities and
investors in addition to just meeting the regulatory expectations.
Environmental
Risk and impact
Mitigation
Climatic events due to climate change remain a high risk
and tend to increase in number and have a greater effect
on communities and day-to-day operations. The mining
industry operates in a challenging environment where the
expectation is to not only provide minerals for the energy
transition but also reduce greenhouse gas emissions.
De-carbonisation projects are expensive and have long
time frames, in addition the returns are hard to quantify.
Scientists advise that if global warming exceeds 1.5 degrees
Celsius, it will cause irreversible impacts on the ecosystem
and societies. The effects of climate change could also
threaten water and food availability in certain communities.
The Board views ESG not only as a risk, but also as an opportunity to
incorporate the principles into the Company’s strategy. The principles
of a circular economy supported by circular business models and
closed material loops are embedded in the Board’s medium- and
long-term strategic objectives.
A key focus area for the Board and management is tailings and waste
management, the concept of a carbon-neutral mine, water
stewardship and using technology to ensure safer working conditions.
The Group formed part of a study, which indicated positive outcomes,
to investigate alternative rehabilitation techniques for tailings dams
which are more environmentally friendly. Carbon emissions and water
usage is measured continuously and reported on various platforms
and new technologies, and systems are being investigated to improve
data collection and reporting to enhance decision making.
Social
Risk and impact
Mitigation
Health and safety and the related risks are inherent in how
the mining and metals industry operates. Mental wellbeing
is becoming more prevalent and can become a challenge
where mines are in remote locations and employees are
away from their support structures for extended periods
of time. Human rights and the possible abuse thereof are
under scrutiny by investors. Mining companies’ action
to protect the human rights of employees and indigenous
people is continuously evaluated.
Community unrest and local protests in the areas where the
Company operates is a reality and could potentially lead to
downtime at the mining sites and pose a financial risk.
Management and the Board monitor the wellbeing of employees,
including mental health, and various support programmes are
available to assist employees and their families. It is the Board’s
ambition to go beyond zero harm and to focus on opportunity
and positive contributions. The concept of wellbeing is constantly
broadening. Campaigns against gender-based violence have been
introduced and various community projects to aid local communities
are maintained and expanded on, for example feeding schemes,
donations to schools and sports equipment, to name a few. Wellness
programmes are in place to support employees and contractors with
work and personal life support services, which include daily
monitoring of wellbeing at the various operations as well as annual
physical medical surveillance processes.
Management engages with the local communities on a regular
basis and consults with the various community leaders on relevant
topics. The Company appoints community liaison officers, who, in
collaboration with management, engage with the communities to
determine their essential needs and to strategies that funds can be
applied in the most effective manner. Health and safety and employee
wellbeing is a key focus area for the Company and forms part of the
measurable key performance indicators (KPIs) of management.
Cost of capital
Risk and impact
Mitigation
There is a significant increase in the demand for strategic
and sustaining capital. Companies compete for investment
to accelerate exploration and development of minerals
which are vital to energy transition. As the energy transition
accelerates, future shortfalls in key commodities are
becoming apparent putting pressure on mining companies
to enter into arrangements that support this trajectory.
The cost of capital to sustain existing business is also
increasing drastically due to, among others, stricter and
more stringent laws and regulations. The cost to build and
maintain tailings dams to sustain production and also to
meet the standards of the GISTM has escalated significantly.
Additional legislative requirements also add to the increased
capital demands.
The reassessing of business models to better address capital risks and
opportunities is an ongoing process to balance growth and economic
returns. Capital allocation decisions are directed to where they will
have maximum impact and cost savings initiatives are constantly
being investigated and explored. Although the Group is not mandated,
it chose to align the tailings dam strategies to the GISTM standards.
Good progress is made in implementing an advanced level 9 proximity
detection system solution to ensure compliance but also to prioritise
safety on the operations. These initiatives support the Group’s goal of
zero harm.
Strategic as well as sustaining capital projects are carefully selected
to ensure that they are aligned with the Group strategy. For any new
projects, a business case supported by an advanced project plan is
required and vigilant project management is undertaken throughout
the projects to ensure that risks are identified timeously and
addressed efficiently.
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34 A N N U A L R E P O R T 2 0 2 4
Directors’ report continued
1
Net revenue
Net revenue decreased 37% year on year mainly due to the
36% decrease of the gross basket price from $2,086/ounce in
FY2023 against $1,339/ounce recorded in the current year.
The 4% decrease in production marginally contributed to a lower
revenue.
2
Cash costs
Cash costs for the Group (4E) increased by 24% from
ZAR13,685/ounce to ZAR16,970/ounce in the previous year,
due to the 15% increase in direct cost and 4% decrease in
4E production.
3
General and administration
General and administrative costs, included in the Group cash
costs, are incurred in USD, GBP and ZAR and are impacted by
exchange rate fluctuations over the reporting period. These
costs marginally increased by 2% to $2.83 million from
$2.79 million in the reporting currency year on year.
4
Mining and income tax
Income tax paid for the financial year amounted to
ZAR67.3 million ($3.6 million) compared to ZAR349.7 million
($19.8 million) for the previous financial year, as a result of
decreased taxable profits at the operations and after mining
capital allowances. Income tax is paid in ZAR on taxable profits
generated at the South African operations. Mineral royalty tax
of ZAR25.8 million ($1.4 million) was paid for the financial year
against ZAR99.3 million ($5.6 million) in the prior year.
5
Profit
The consolidated profit before tax of the Group at 30 June 2024
was $13.5 million (FY2023: $67.0 million), an 80% decrease on
the prior year. The decrease in profit is as a result of the
decreased revenue due to the lower basket prices compared
to the prior year and the 4% decrease in production. Adjusted
Group EBITDA decreased by 80% from $66.0 million to
$13.5 million, which excludes the $1.2 million historical interest
written off as a result of the early settlement of the loan and
sales proceeds with regards to the Grasvally transaction.
6
Capital
Capital expenditure increased in USD terms during the current
financial year from $14.5 million (ZAR257.2 million) in the prior
year to $15.8 million (ZAR296.0 million) in the current year.
During the current period, $8.4 million was spent on strategic
and stay in business capital, $5.7 million was spent on the
Thaba JV attributable capital and $0.8 million was spent on
exploration capital. The main strategic projects during the period
included the centralised filtration plant, $6.7 million, the Lannex
classification plant, $1.5 million, the Lannex MF2, $1.1 million
and the generators at Millsell and Mooinooi, $2.4 million.
Cost management and supply chain
Risk and impact
Mitigation
It appears that inflation is easing slightly but the positive
impact on realised costs is taking time to filter through.
Energy cost as well as labour costs are rising above inflation
rates and continue to remain high. Energy costs are affected
by the Ukraine war and the effect it has on supply and
demand and labour costs seems to rise as a result of the
shortage of skilled staff.
The Board and management continue to emphasise the importance of
controlling operational costs without compromising the promotion of
our ESG strategy. The mission statement of the Group underpins the
principle of a low-cost but efficient operating model. While the current
bottom line is important, the Board and management work around
strategies that will enhance future performance and sustainability.
Human capital
Risk and impact
Mitigation
Finding and retaining talent is always a challenge. Younger
employees might have an affinity toward energy transition
projects rather than the mining sector. The Group is reliant
on a small team with a specialised skill set to ensure the
success of the Company. Corporate intelligence and the
continuation thereof is a key factor for operational
excellence. A fast turnover in management might affect
employee morale negatively. The lack of a succession plan
for both key management and the Board can potentially
lead to the unnecessary disruption of the operations and
potentially lead to a loss of investor confidence.
The Group creates a supportive work environment for all employees
with emphasis on employee health which is supported by the
employee assistance plan. The Company incentivises key management
through the granting of bonus share awards, regular salary
benchmarking and opportunities to further any relevant studies.
Succession planning is a focus area of the Board and forms part of
the Executive strategy workshops.
Group financial results
A summary of the Group’s performance for the period is summarised below and a more detailed description is further provided.
2024
2023
± % change
Average 4E gross basket price
$/oz
1,339
2,086
(36)
1
Net revenue
$ 000
81,713
130,196
(37)
2
Group cash cost
ZAR/oz
16,970
13,685
24
Group cash cost
$/oz
907
771
18
Gross profit
$ 000
11,287
64,001
(82)
3
General administration costs
$ 000
(2,838)
(2,790)
2
5
Profit before income tax expense
$ 000
13,469
66,977
(80)
Group EBITDA
$ 000
13,464
65,964
(80)
Cash generated from operations (before working
capital changes)
$ 000
13,389
63,962
(79)
Changes in working capital
$ 000
1,611
13,716
(88)
Net finance income received
$ 000
5,936
5,094
17
4
Taxation paid
$ 000
(6,231)
(19,785)
(69)
Net increase/(decrease) in cash and cash
equivalents
$ 000
(26,972)
6,639
(506)
7
Cash and cash equivalents, end of year*
$ 000
97,845
124,160
(21)
Production
Plant feed
T
2,483,610
2,615,994
(5)
Total 3E and Au
Oz
72,704
75,469
(4)
PGM plant recovery
%
55.27
55.86
(1)
Capital expenditure
Property, plant and equipment
$ 000
14,969
12,869
16
Exploration and evaluation assets
$ 000
847
1,622
(48)
6
Total capital expenditure
$ 000
15,816
14,491
9
* An additional $301,979 (FY2023: $823,144) was transferred to Other Financial Assets for reporting purposes. It relates to cash guarantees to
Eskom and the DMRE.
7
Cash
The cash balance decreased by 21% year on year to $97.8 million
(FY2023: $124.2 million). This balance excludes $1.2 million
restricted cash (FY2023: $0.8 million) relating to guarantees with
the DMRE, Eskom and Growthpoint. A new cash guarantee of
$0.3 million was issued to Eskom during FY2024 relating to
the Thaba JV.
Income tax of $3.6 million, dividend withholding tax of
$2.6 million on intercompany dividends and mineral royalty
tax of $1.4 million was paid to the South African Revenue
Services during FY2024. Total dividends of $23.3 million were
paid during the period, being a special dividend of $3.3 million
as a result of the early settlement of the Grasvally sale
proceeds and loan of $6.2 million in April 2024, a final dividend
for FY2023 in December 2023 and an interim dividend for
FY2024 in April 2024 of $16.7 million and $3.3 million
respectively. A further $0.7 million was paid through the EDEP to
all qualifying employees. Surplus cash invested earned interest
income amounting $5.9 million.
The Group spent $15.8 million (FY2023: $14.5 million) on capital,
comprising $9.3 million improvement and stay in business
capital, $5.7 million attributable capital on the Thaba JV and
$0.8 million on exploration projects. Lease payments for the
rental of various equipment amounting to $0.6 million was
made during the period.
At a corporate level, a total of 2,693,750 shares amounting to
$2.1 million were bought back through the Share Buyback
programme ($1.4 million), from certain employees and PDMRs
($0.3 million) and to satisfy tax requirements on vested shares
from individuals ($0.4 million).
Cash generated from operations before working capital
movements was $13.4 million, with net changes in
working capital of $1.6 million mainly due to the movement
in trade receivables of $5.6 million and trade payables of
$3.6 million.
The impact of exchange rate differences for the period
amounted to $0.7 million profit, as a result of the net
appreciation of the ZAR to the USD during and at the end
of FY2024.
For more details on the financial performance of the Group,
please refer to the consolidated annual financial statements.
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Directors’ report continued
Review of operations and exploration
A detailed review of operations and exploration activities
has been included in the CEO’s review.
Corporate matters
Dividend approval and payment
During the period under review the Company paid a final
dividend for FY2023 totalling $16.7 million, equating to 5 pence
per Ordinary Share, to Shareholders on the register on the
record date of 27 October 2023. This brought the annual
dividend for FY2023 to 8 pence per Ordinary Share. An interim
dividend for FY2024 of 1 pence per Ordinary Share was paid to
shareholders on the register on the record date of 1 March 2024
on 5 April 2024 and amounted to $3.3 million. A further special
dividend of 1 pence per Ordinary Share, amounting to $3.3
million, was paid on 7 June 2024 from the Grasvally settlement
proceeds.
Transactions in own shares
1,235,000 bonus share awards vested and were exercised by
employees and PDMRs. Of the 1,235,000 shares that were
exercised, 425,000 related to PDMRs. The 1,235,000 shares
exercised amounts to $0.9 million of which $0.3 million relates
to PDMRs and $0.6 million relates to employees.
During the period, the Company conducted an on-market Share
Buyback programme to purchase Ordinary $0.01 Shares of the
Company’s issued share capital, up to a maximum consideration
of $3.0 million. A total of 1,843,000 Ordinary Shares were
bought back after the launch of the Share Buyback programme
at an average price of 57.21 pence per share, equating to
$1.3 million in aggregate. An additional 166,000 Ordinary Shares
were bought back from employees at the 30-Day VWAP of
54.95 pence per share equating to $0.1 million. Thus, a total of
2,009,000 shares were bought back by the Company during
FY2024 at a cost of $1.4 million.
2,009,000 Ordinary Shares held in treasury were cancelled.
Following the cancellation, the Company’s issued share capital,
as at 30 June 2024, is 273,366,725 Ordinary Shares, of which a
total of 11,765,211 Ordinary Shares are held in treasury.
Therefore, the total number of Ordinary Shares with voting
rights in Sylvania is 261,601,514
Likely developments and expected results
Additional comments on production forecasts and operating
cash costs are included in the operational performance and
outlook section in the CEO’s review.
Environmental and legislation
The Group is subject to significant environmental legal
regulations in respect of its exploration and evaluation
activities in South Africa. There have been no known reportable
breaches of these regulations and principles by the Group
and its operations.
Company secretary
The Company Secretary role is held by Conyers Corporate
Services (Bermuda) Limited.
Going concern
The Group identified the principal risks as the prolonged low
metal prices as a result of a globally volatile economy driven
by political uncertainty and national elections in some of the
largest and most influential economic and political countries
worldwide, the ongoing unrest in Ukraine and the Middle East
and supply and demand uncertainties. This gave rise to an
increase in interest rates worldwide, high inflation and
prolonged low commodity prices which affected the mining
industry negatively.
The demand for PGMs in the remainder of the 2024 calendar
year is forecasted to still outweigh supply. The primary supply
of platinum is predicted to decline as Russian shipments return
to a normalised levels and automative use is forecast to
contract due to the decrease in the production of diesel
vehicles, but industrial consumption should increase due to
the ongoing investment in the glass industry which is supported
by the production of wind turbines. PGMs are bound to play a
critical role in the energy transition which will incentivise mining
companies to be innovative in their strategic planning and to
capitalise on the unique properties and cyclical nature of
these metals.
Despite economic, structural and sector outlook concerns,
there is still an appetite for consolidation in the mining
industry, to pursue diversification strategies and for speculative
acquisitions. The Board and management are cautiously
positive and exploring diversification and collaboration
opportunities that fit into the Group strategy.
After considering the aforementioned risks, the financial
position and strong cash position, operational performance,
budgets and forecasts as well as the timing of cash flows and
sensitivity analyses, the Directors are satisfied that the Company
and the Group have adequate resources to continue in
operational existence for at least 12 months from date of
signing the financial statements.
Events after the reporting period
The Directors are not aware of any further matters or
circumstances arising since the end of the reporting period,
not otherwise dealt with in the financial statements, which
significantly affect the financial position of the Group or the
results of its operations.
Statement as to disclosure of information to
auditors
The Directors who were in office on the date of approval of
these financial statements have confirmed, as far as they are
aware, that there is no relevant audit information of which the
auditors are unaware. Each of the Directors has confirmed that
they have taken all the steps that they ought to have taken as
Directors in order to make themselves aware of any relevant
audit information and to establish that it has been
communicated to the auditor.
Signed in accordance with a resolution of the Directors
Jaco Prinsloo
Chief Executive Officer
9 September 2024
A total of 1,843,000
Ordinary Shares
were bought back after
the launch of the
Share Buyback
programme at
an average price
of 57.21 pence
per share.
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Corporate governance
Effective communication of the Group’s governance and
strategy to shareholders is crucial. This is achieved through
relationships between the Board and shareholders, as well as
formal platforms that foster trust in both the Group and the
Board. Shareholders are given opportunities to respond to
these engagements, promoting open communication channels.
The QCA Code 2023 emphasises the importance of Board
independence, succession planning, the workforce, risk
management, ESG initiatives and the related reporting.
The aforementioned have always been a key focus area and
the Board continues to evaluate and assess the effectiveness
around the governance in these areas. The Board of Directors
has established an audit, nomination, remuneration and, more
recently, a technical committee to address specific areas in
more detail. The ESG environment has shown rapid changes,
and the Board is committed to meet all stakeholders’
expectations thereon as evidenced in the annual ESG report.
The Board understands the importance of good corporate
governance to ensure long-term shareholder value by making
timely decisions to improve performance while managing the
Group’s risks. As such, the Board has incorporated the QCA
principles into the Group strategy. The Board determines the
purpose driven strategy and business plan and sets the tone
that supports the Group culture underpinned by the Vision,
Mission and Values.
The Company is quoted on AIM and in
accordance with the AIM Rules, the
Quoted Companies Alliance Corporate
Governance Code 2018 (QCA Code 2018/
the Code) was adopted and implemented
from September 2018. Details of how the
Company has incorporated each of the
ten principles is disclosed on the
Company’s website (https://www.
sylvaniaplatinum.com/governance/
corporate-governance). The revised
Code was published in November 2023
(QCA Code 2023) and must be adopted
in respect of accounting periods
commencing on or after 1 April 2024.
Sylvania has opted to early adopt the
QCA Code 2023.
Vision
Being the best mid-tier platinum and associated metals
producer in the world.
Mission
To grow our low-cost and efficient business by
leveraging our existing asset base and continuing
innovation through existing and future strategic
partnerships, while proactively considering commodity
and geographic diversification. Creating value for
stakeholders by being an innovative, agile and
sustainable operator of choice.
Values
Safety and health of all, fundamental rights of all
people, honesty and integrity, respect for the
environment and understanding the value of the
culture, traditional rights and society in which we
operate.
The Company’s QCA code disclosures within the annual report and Company website are summarised in the table below:
QCA 1
QCA 2
QCA 3
Principle:
Establish a purpose, strategy and
business model which promote
long-term value for shareholders.
Promote a corporate culture that
is based on ethical values and
behaviours.
Seek to understand and meet
shareholder needs and
expectations.
Disclosure:
Annual report:
• Key performance indicators
• Chair’s letter and CEO review
Website:
• Strategy page
Annual report:
• Corporate profile
Website:
• Vision, mission and values
Annual report:
• Chair’s letter
• CEO review
• Directors’ report
Website:
• Vision, mission and values
QCA 4
QCA 5
QCA 6
Principle:
Take into account wider
stakeholder interest, including
social and environmental
responsibilities, and their
implications for long-term success.
Embed effective risk management,
internal controls and assurance
activities, considering both
opportunities and threats,
throughout the organisation.
Establish and maintain the Board
as a well-functioning, balanced
team led by the Chairman.
Disclosure:
Annual report:
• ESG review
Website:
• Annual ESG report
• Vision, mission and values
Annual report:
• Directors’ report
• Audit committee report
Website:
• Board Charter
• Audit committee Charter
Annual report:
• Directors’ report
Website:
• Board Charter
• Board of Directors page
QCA 7
QCA 8
QCA 9
Principle:
Maintain appropriate governance
structures and ensure that
individually and collectively, the
directors have the necessary
up-to-date experience, skills and
capabilities.
Evaluate Board performance based
on clear and relevant objectives,
seeking continuous improvement.
Establish a remuneration policy
which is supportive of long-term
value creation and the Company’s
purpose, strategy and culture.
Disclosure:
Annual report:
• Corporate governance statement
• Directors’ report
Website:
• Governance
• Directors’ biographies
Website:
• Vision, mission and values
Annual report:
• Directors’ report
Website:
• Remuneration committee
Charter
QCA 10
Principle:
Communicate how the Company is governed and is performing by maintaining a dialogue with shareholders
and other relevant stakeholders.
Disclosure:
Annual report:
• Directors’ report
• Audit committee report
Website:
• Announcement
Other:
• Investors roadshows
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Corporate governance continued
Shareholder relations and expectations
The Company is committed to communicating with
shareholders through investor roadshows in person and online,
investor meetings, through the Regulatory News Services (RNS)
and on the Company’s website. The announcements are
released at least quarterly, and engagements planned in line
with the half year and annual reporting cycles. The aim is to
maintain open and transparent communication with
shareholders on the strategy and performance of the Company.
The Company assesses the evolving investor expectations and
incorporates, where possible, identified matters into the
presentations and releases.
Stakeholder and social responsibilities
The Company acknowledges the importance of the workforce and
the related environmental and social needs. The Company follows
the principles of good corporate citizenship and engages on a
regular basis with all stakeholders. Two-way communication
ensures that healthy and transparent relationships, built on trust
and integrity, are maintained. The Company is committed to
“doing what we say we are going to do” and show commitment
toward delivering positive and value-adding outcomes portraying
an image of professionalism. Refer to the Company website:
https://www.sylvaniaplatinum.com/ and our annual report and
ESG report for more detail on the various engagements with our
employees and communities in which the Company operates.
The Board
The Chair leads the Board and is committed to communicate
and deliver on the Company’s corporate governance model.
The Board is committed to maintaining the highest standards
of corporate governance throughout its operations and
ensuring that all its practices are conducted transparently,
ethically and efficiently to ultimately deliver long-term value
to shareholders. The Board and management continue to
review, analyse and improve the Company’s procedures
resulting in the continued success of the Company and
increasing shareholder value.
The Board is responsible for providing leadership aligned with
the Group’s culture and ethical values, creating an environment
where strategy, performance, risk management and
sustainability are equally valued and balanced to optimise
results. The Board is responsible for the management of the
Group by developing, reviewing and approving the Group’s
strategy, budgets and corporate actions. Regular Board
meetings are held to review strategy, planning and operational
and financial performance. Furthermore, the Board ensures
that its obligations to shareholders and other stakeholders
are met and that good relationships are maintained.
The Board comprises five members, representing a balance
of sector expertise, financial and market experience, and
personal attributes. The composition of the Board and the
respective skills support the delivery of the Group’s strategy and
business plan. There is a clear division of responsibilities at the
head of the Group through the separation of the positions of
the Chair and Chief Executive Officer, and the roles and
responsibilities of the Board members are clearly defined.
The Board avails themselves for the necessary Board, Strategy,
Information and other meetings as well as ad hoc meetings
should a major transaction or event occur. The Board receives
detailed information packs ahead of all formal Board meetings
on operational, financial, treasury and corporate activities to
enable them to make informed decisions when necessary.
All announcements released via RNS, including quarterly, half
year and annual results are approved by the entire Board.
The Board has not appointed a Senior Independent Director
but will do so if and when it is appropriate considering the
Company’s size and circumstances.
The Executive Board members lead by example in living
the values and promoting the culture of the Group, which
facilitate improved performance, reduce and mitigate
risk and create sustainable growth. Group results are
disclosed on the Group website on a quarterly basis,
supported by more detailed reports bi-annually,
promoting transparency.
Audit committee
Detailed feedback with regards to the audit committee is
included in the audit committee report.
Remuneration committee
The purpose of the remuneration committee is to determine
and agree with the Board the framework or broad policy for
the remuneration of the Company’s Chair, Executive
Directors and senior management. It motivates the Directors
and aligns the interest of the executive team with the interest
of shareholders. The remuneration committee also reviews and
approves strategies and incentive plans to attract and retain
high-quality executives. It reviews the Board and executives’
KPIs, as well as performance-related pay and bonus share
allocations. No Director is involved in reviewing their own
remuneration. Directors’ interest in shares is set out in the
Directors’ report. The Independent Non-Executive Directors
may, if needed, seek independent professional advice, at the
Group’s expense, in the execution of their duties.
Nominations committee
The role of the nominations committee is undertaken by the full
Board of Directors. The nominations committee is responsible
for a succession plan for Directors of the Board as well as senior
management. The nominations committee identifies the skills,
experience and capabilities required to execute on the
Company’s strategy.
Technical committee
The purpose of the technical committee is to advise the
Board on technical matters, specifically relating to exploration,
resource development, feasibility studies, review of potential
targets for an acquisition and overseeing the Company’s
performance in such areas.
Detail on the composition of the committees and
meetings during the period under review is included in
the Directors’ report.
The Board is committed
to maintaining the
highest standards of
corporate governance
throughout its
operations.
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Audit committee report
Key judgements and estimates in the FY2024 Group
financial statements considered by the audit committee
include:
• The assessment of the recoverability of long-lived assets;
• Rehabilitation provision;
• Carrying value of property, plant and equipment;
• Going concern;
• Subsequent events and
• Other reporting matters or changes in IFRS when
applicable (including IFRS 2, share-based payments).
b. Insurance
The Group’s unique insurance portfolio and requirements
were reassessed and reconsidered in terms of risk cover,
expert advice from the insurance brokers, pricing and
premiums. Management recommended, and the audit
committee agreed, that the Group insurance programme
continue with the insurance brokers elected in FY2023.
The Directors and Officers insurance was renewed,
commencing December 2023, and the audit committee
was satisfied that the insurance was still applicable and
sufficient.
c. External audit
The audit committee agreed that the Group’s external
auditor, PricewaterhouseCoopers (PwC), is still independent
and objective. The audit committee recommended to the
Board that PwC be re-appointed as external auditor for a
fourth term. The audit fee was approved, including the
additional work to be performed on the Thaba JV and the
disclosure thereof in the consolidated financial statements.
PwC presented their detailed audit plan for the year ended
30 June 2024. The audit committee was satisfied with
the rationale and timetable for the year-end audit at the
planning stage, the estimated materiality threshold,
the audit scoping, identification of key audit areas and
significant judgements and estimates as presented by PwC.
d. Internal control environment
The planning and reporting of the Group’s internal audit
function is monitored by the audit committee and the Board
of Directors. Since 2020, the internal audit function has been
outsourced and is currently performed by BDO, who also
facilitates the bi-annual risk review process by management
from which the risk register is maintained and updated.
The full scope of planned internal audit procedures as
proposed by BDO in the August 2023 audit committee
meeting was completed during the year under review, the
outcomes of which were presented to the audit committee
in August 2024. The audit committee was satisfied that
management reviews and manages the overall risk of the
Group satisfactorily and that the Company has a sound
control environment and risk management framework.
A new internal audit plan was tabled at the August 2024
audit committee meeting, which is aligned with
management’s requirements, the Group’s risk profile
and the current risk trends. The internal audit function is
discussed with the external auditors during the year-end
and half-year reporting periods.
The Group utilises the services of an external whistleblower
company and receives monthly written reports. The audit
committee reviewed the effectiveness of the Company’s
whistleblowing policy and procedures for detecting fraud.
The committee is satisfied with the whistleblowing
processes that are in place.
The audit committee was satisfied that the overall control
environment is at a satisfactory level and that management
reviews and manages the overall risk of the Group in line
with the required standards.
e. IT governance and cybersecurity
IT governance and cybersecurity is a key focus of the
audit committee, as cybersecurity threats and breaches
continue to become more prevalent.
The annual cybersecurity assessment was completed by
an external specialist during the period and the audit
committee agreed with management’s recommendation
that the annual IT risk assessments will continue to be
done. Regular monitoring and risk assessments are
conducted by management and feedback is provided on
various platforms and is reported annually, or more
frequently if concerns are identified, at the audit
committee meetings and monthly at the executive meetings.
IT governance and cybersecurity remains a priority of the
audit committee and management.
f.
Treasury
Cash management and the treasury function remain a
key focus area of the audit committee. Bi-annual treasury
reports, detailing the Group’s cash position, main areas
of risk and exposure and dividends declared, amongst
others, were reviewed and assessed. Despite the volatile
commodity prices and decreased Group cash balance
during the year under review, the audit committee is
satisfied that the Group remains solvent and liquid and is
in a healthy financial position.
Finally, I would like to commend our CFO, Lewanne Carminati,
and her team for the continuous improvements with regard
to the corporate reporting cycle and their excellent work during
the year under review, in addition to maintaining effective
internal controls, treasury and risk management and delivering
a high standard of management and financial reports. I would
also like to extend a word of thanks to both PwC and BDO for
their efforts and commitment to the Group.
For and on behalf of the audit committee of Sylvania Platinum
Limited.
Simon Scott
Chair of the audit committee
9 September 2024
I am pleased to present the audit
committee report for Sylvania
Platinum Limited for the period ended
30 June 2024.
The audit committee has been established
to drive the quality of financial and related
reporting by promoting a culture of
improvement, to ensure that the information
needs of investors and other
users are met and to assist
the Board in fulfilling its
obligations.
I am pleased to present the audit committee report for
Sylvania Platinum Limited for the period ended 30 June 2024.
This report is prepared in accordance with the Quoted
Companies Alliance (QCA) Corporate Governance Code for
Small and Mid-sized Quoted Companies, revised in November
2023. The audit committee has been established to drive the
quality of financial and related reporting by promoting a culture
of improvement to ensure that the information needs of
investors and other users are met and to assist the Board in
fulfilling its obligations. This report provides an overview of the
committee’s work, focusing on the effectiveness of the Group’s
financial and other reporting, public announcements, risk
management, tax matters, control environment and the internal
and external audit processes.
The audit committee comprises myself as Chair, and Adrian
Reynolds (Non-Executive Director) as a member. A summary
of the relevant qualifications and experience of the audit
committee can be found in the Director’s report.
The audit committee meets at least four times a year and more
often if required. Attendance records of each member can be
found in the Directors’ report. For the current period’s meetings,
the Chair of the Board, CEO, CFO, Group Financial Manager,
external auditor as well as the internal auditor were invited to
attend the relevant meetings when deemed necessary, to
provide input into key matters. Detailed feedback of the items
discussed at each audit committee meeting is provided at the
Board meetings, and recommendations are made as
appropriate. Minutes of all audit committee meetings are
available to the full Board. The Chair of the audit committee
meets regularly with the CFO where the corporate reporting
cycle, Company strategy and business model, key risk areas,
cash flow and any anticipated new or once-off transactions
and the related changes in accounting policies and disclosures
are discussed. The Chair of the audit committee also meets
privately with the external auditors after each audit committee
meeting and has periodic private meetings with the Group
internal auditor.
The main matters considered by the audit committee during
2023/2024 include:
a. Group Financial Statements
The committee reviewed and discussed the Company’s
quarterly announcements, half-yearly, and annual financial
statements, ensuring compliance with IFRS and AIM Rules
for Companies.
An essential element of the integrity of the financial
statements lies around the key assumptions and estimates
or judgements made. The key assumptions and estimates
are reviewed by the audit committee prior to the publication
of the interim and annual financial statements, as well as
significant matters throughout the year. The audit
committee was satisfied that the judgement exercised by
management on material items contained within the
reports, are reasonable.
Simon Scott
Chair of the audit
committee
A N N U A L R E P O R T 2 0 2 4 45
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S T RAT EGI C L EADERS HI P
CORPORATE GOVERNANCE
FI NANCI AL S T AT EMENT S
SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
44 A N N U A L R E P O R T 2 0 2 4
A N N U A L R E P O R T 2 0 2 4 47
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S T RAT EGI C L EADERS HI P
CO RPO RAT E GO V ERNANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
for the year ended 30 June 2024
for the year ended 30 June 2024
F I NANCI AL
S T ATE M ENT S
04
Consolidated statement of changes in equity
56
Consolidated statement of cash flows
58
Notes to the consolidated financial statements
59
Directors’ responsibilities in the preparation
of the financial statements
48
Independent auditor’s report
50
Consolidated statement of profit or loss
and other comprehensive income
54
Consolidated statement of financial position
55
46 A N N U A L R E P O R T 2 0 2 4
A N N U A L R E P O R T 2 0 2 4 49
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S T RAT EGI C L EADERS HI P
CO RPO RAT E GO V ERNANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
48 A N N U A L R E P O R T 2 0 2 4
Directors’ responsibilities in the preparation
of the financial statements
The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law
and regulations.
The Directors have elected to prepare the Group financial statements under the IFRS.
International Accounting Standard 1 requires that financial statements present fairly for each financial year the Group’s financial
position, financial performance and cash flows. This requires the faithful representation of the effects of transactions, other events
and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the
International Accounting Standards Board’s ‘Framework for the Preparation and Presentation of Financial Statements’. In virtually
all circumstances, a fair presentation will be achieved by compliance with all applicable IFRSs.
The Directors are also responsible for:
• properly selecting and applying accounting policies;
• presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable
information;
• providing additional disclosures when compliance with the specific requirements in IFRSs is insufficient to enable users to
understand the impact of particular transactions, other events and conditions on the entity’s financial position and financial
performance; and
• making an assessment of the Group’s ability to continue as a going concern.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group’s
transactions and disclose with reasonable accuracy at any time the financial position of the Group. They are also responsible
for safeguarding assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and
other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the
Company’s website.
Legislation in Bermuda governing the preparation and dissemination of financial statements may differ from legislation in
other jurisdictions.
Directors’ responsibility statement
We confirm that to the best of our knowledge:
1. the financial statements, prepared in accordance with International Financial Reporting Standards, give a true and fair view
of the assets, liabilities, financial position, profit or loss and cash flows of the Group and the undertakings included in the
consolidation taken as a whole; and
2. the sections of the annual report include a fair review of the development and performance of the business and the position
of the Group, and the undertakings included in the consolidation taken as a whole, together with a description of the principal
risks and uncertainties that they face.
By order of the Board
Jaco Prinsloo
Chief Executive Officer
9 September 2024
A N N U A L R E P O R T 2 0 2 4 51
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CO RPO RAT E GO V ERNANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
50 A N N U A L R E P O R T 2 0 2 4
To the Directors of Sylvania Platinum Limited
Independent auditor’s report
Our opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of
Sylvania Platinum Limited (the Company) and its subsidiaries (together the Group) as at 30 June 2024, and its consolidated financial
performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards.
What we have audited
Sylvania Platinum Limited’s consolidated financial statements set out on
pages 54 to 105 comprise:
• the consolidated statement of financial position as at 30 June 2024;
• the consolidated statement of profit or loss and other comprehensive income for the year then ended;
• the consolidated statement of changes in equity for the year then ended;
• the consolidated statement of cash flows for the year then ended; and
• the notes to the financial statements, including material accounting policy information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards
are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the Independent Regulatory Board for Auditors’ Code of Professional Conduct
for Registered Auditors (IRBA Code) and other independence requirements applicable to performing audits of financial statements
in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA Code and in accordance with other
ethical requirements applicable to performing audits in South Africa. The IRBA Code is consistent with the corresponding sections
of the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including
International Independence Standards).
Our audit approach
Overview
Materiality
Key audit
matters
Group
scoping
Overall group materiality
• Overall group materiality: $2,689,000, which represents 5% of the average consolidated profit
before income tax expense of the past three years.
Group audit scope
• We conducted full scope audit procedures at two components and audits of material financial
statement line items at ten components based on their financial significance to the consolidated
financial statements. Analytical review procedures were performed on inconsequential
components.
Key audit matters
• We have determined that there are no key audit matters to communicate in our report in
respect of the consolidated financial statements.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated
financial statements. In particular, we considered where the directors made subjective judgements; for example, in respect of
significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.
As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters,
consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether
the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered
material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group
materiality for the consolidated financial statements as a whole as set out in the table below. These, together with qualitative
considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and
to evaluate the effect of misstatements, both individually and in aggregate on the financial statements as a whole.
Overall group materiality
$2,689,000
How we determined it
5% of the average consolidated profit before income tax expense of the past three years.
Rationale for the materiality
benchmark applied
We chose average consolidated profit before income tax expense of the past three years as
the benchmark because, in our view, it is the benchmark against which the performance of
the Group is most commonly measured by users, and is a generally accepted benchmark.
We chose 5% which is consistent with quantitative materiality thresholds used for profit-oriented
companies in this sector.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated
financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the
industry in which the Group operates.
In determining the type of work that needed to be performed for purposes of the group audit, we identified components that were
of financial significance to the Group based on the respective component’s contribution to key financial statement line items
(consolidated profit/loss before income tax expense, consolidated revenue or consolidated total assets) and risk associated with the
respective component. Based on our scoping assessment, we conducted full scope audits on two components and audits of material
financial statement line items on ten components. For the components that were considered to be financially inconsequential, we
performed analytical review procedures in order to obtain sufficient appropriate audit evidence in respect of the consolidated
financial statements.
A N N U A L R E P O R T 2 0 2 4 53
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FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
52 A N N U A L R E P O R T 2 0 2 4
Independent auditor’s report continued
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated
financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined that there are no key audit matters to communicate in our report in respect of the consolidated
financial statements.
Other information
The Directors are responsible for the other information. The other information comprises the information included in the document
titled “Sylvania Platinum Limited Annual Report 30 June 2024”. The other information does not include the consolidated financial
statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express an audit opinion
or any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified
above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements
or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the consolidated financial statements
The Directors are responsible for the preparation and fair presentation of the consolidated financial statements in accordance
with IFRS Accounting Standards and for such internal control as the Directors determine is necessary to enable the preparation
of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing the Group’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures,
and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the
consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
PricewaterhouseCoopers Inc.
Director: MM Mokane
Registered Auditor
Johannesburg, South Africa
10 September 2024
The examination of controls over the maintenance and integrity of the Group’s website is beyond the scope of the audit of the
financial statements. Accordingly, we accept no responsibility for any changes that may have occurred to the financial statements
since they were initially presented on the website.
A N N U A L R E P O R T 2 0 2 4 55
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CO RPO RAT E GO V ERNANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
54 A N N U A L R E P O R T 2 0 2 4
for the year ended 30 June 2024
at 30 June 2024
Consolidated statement of financial position
Consolidated statement of profit or loss and
other comprehensive income
Note(s)
2024
2023
$
$
Revenue
9
81,712,471
130,196,100
Cost of sales
10(b)(c)
(69,037,113)
(61,290,716)
Royalties tax
(1,388,295)
(4,903,977)
Gross profit
11,287,063
64,001,407
Other income
10(a)
292,385
1,792,134
Other expenses
10(b)(c)
(4,162,849)
(4,020,070)
Operating profit before net finance costs and income tax expense
7,416,599
61,773,471
Finance income
10(d)
6,550,795
5,780,364
Finance costs
10(d)
(498,058)
(576,958)
Profit before income tax expense
13,469,336
66,976,877
Income tax expense
11
(6,485,517)
(21,625,108)
Net profit for the period
6,983,819
45,351,769
Items that are or may be subsequently reclassified to profit and loss:
Foreign operations – foreign currency translation differences
20
4,011,726
(17,183,248)
Total other comprehensive loss (net of tax)
4,011,726
(17,183,248)
Total comprehensive income for the year
10,995,545
28,168,521
Cents
Cents
Earnings per share attributable to the ordinary equity holders
of the Company:
Basic earnings per share
12
2.66
17.01
Diluted earnings per share
12
2.65
16.95
The notes on pages 59 to 105 form part of
these consolidated financial statements.
Note(s)
2024
2023
$
$
ASSETS
Non-current assets
Exploration and evaluation expenditure
13
47,679,159
46,464,143
Property, plant and equipment
14
61,850,367
48,650,611
Other financial assets
15
7,382,817
6,352,325
Other assets
409,530
30,024
Deferred tax asset
11
11,184
11,088
Total non-current assets
117,333,057
101,508,191
Current assets
Cash and cash equivalents
16
97,844,572
124,159,854
Trade and other receivables
17
34,713,796
35,714,003
Other financial assets
15
–
1,800,402
Inventories
18
5,667,761
5,103,550
Current tax asset
24(b)
2,009,151
1,472,104
Total current assets
140,235,280
168,249,913
Total assets
257,568,337
269,758,104
EQUITY AND LIABILITIES
Shareholders' equity
Issued capital
19
2,733,667
2,790,000
Reserves
20
20,023,343
17,461,465
Retained profit
202,732,500
219,112,582
Total equity
225,489,510
239,364,047
Non-current liabilities
Leases
21
457,003
380,833
Provisions
22
4,231,248
4,040,854
Deferred tax liability
11
13,282,261
12,118,702
Total non-current liabilities
17,970,512
16,540,389
Current liabilities
Trade and other payables
23
13,637,076
13,522,940
Leases
21
471,239
330,728
Total current liabilities
14,108,315
13,853,668
Total liabilities
32,078,827
30,394,057
Total liabilities and shareholder's equity
257,568,337
269,758,104
The notes on pages 59 to 105 form part of
these consolidated financial statements.
A N N U A L R E P O R T 2 0 2 4 57
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FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
56 A N N U A L R E P O R T 2 0 2 4
for the year ended 30 June 2024
Consolidated statement of changes in equity
Issued
capital
Share
premium
reserve
Reserve
for own
shares
Retained
earnings
Share-based
payment
reserve
Foreign
currency
translation
reserve
Non-
controlling
interest
reserve
Equity
reserve
Total
equity
$
$
$
$
$
$
$
$
$
Balance as at 01 July 2023
2,790,000
173,609,067
(22,131,814)
219,112,582
4,789,474
(69,284,756)
(39,779,293)
(29,741,213)
239,364,047
Profit/(loss) for the period
–
–
–
6,983,819
–
–
–
–
6,983,819
Total other comprehensive income*
–
–
–
–
–
4,011,726
–
–
4,011,726
Total comprehensive income for the period
–
–
–
6,983,819
–
4,011,726
–
–
10,995,545
Share transactions
–
–
–
–
–
–
–
–
–
– Shares issued
–
–
–
–
–
–
–
–
–
– Treasury shares acquired
–
–
(2,053,261)
–
–
–
–
–
(2,053,261)
– Share-based payments
–
–
–
–
547,080
–
–
–
547,080
– Share options and bonus shares exercised
–
–
923,345
–
(923,345)
–
–
–
–
– Shares cancelled
(56,333)
–
56,333
–
–
–
–
–
–
Dividends declared and paid
–
–
–
(23,363,901)
–
–
–
–
(23,363,901)
Balance at 30 June 2024
2,733,667
173,609,067
(23,205,397)
202,732,500
4,413,209
(65,273,030)
(39,779,293)
(29,741,213)
225,489,510
* Deferred tax on the FCTR movement amounts to $237,961.
The notes on pages 59 to 105 form part of
these consolidated financial statements.
Issued
capital
Share
premium
reser ve
Reser ve
for own
shares
Retained
earnings
Share-based
payment
reser ve
Foreign
currenc y
translation
reser ve
Non-
controlling
interest
reser ve
Equit y
reser ve
Total
equit y
$
$
$
$
$
$
$
$
$
Balance as at 01 July 2022
2,801,557
173,609,067
(17,994,924)
209,221,487
4,671,159
(52,101,508)
(39,779,293)
(29,741,213)
250,686,332
Profit/(loss) for the period
–
–
–
45,351,769
–
–
–
–
45,351,769
Other comprehensive income*
–
–
–
–
–
(17,183,248)
–
–
(17,183,248)
Total comprehensive income for the period
–
–
–
45,351,769
–
(17,183,248)
–
–
28,168,521
Share transactions
–
–
–
–
–
–
–
–
–
– Shares issued
–
–
–
–
–
–
–
–
–
– Treasury shares acquired
–
–
(4,912,348)
–
–
–
–
–
(4,912,348)
– Share-based payments
–
–
–
–
882,216
–
–
–
882,216
– Share options and bonus shares exercised
–
–
763,901
–
(763,901)
–
–
–
–
– Shares cancelled
(11,557)
–
11,557
–
–
–
–
–
–
Dividends declared and paid
–
–
–
(35,460,674)
–
–
–
–
(35,460,674)
Balance at 30 June 2023
2,790,000
173,609,067
(22,131,814)
219,112,582
4,789,474
(69,284,756)
(39,779,293)
(29,741,213)
239,364,047
* Deferred tax on the FCTR movement amounts to $1,679,539.
The notes on pages 59 to 105 form part of
these consolidated financial statements.
A N N U A L R E P O R T 2 0 2 4 59
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FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
58 A N N U A L R E P O R T 2 0 2 4
for the year ended 30 June 2024
Notes to the consolidated financial
statements
Consolidated statement of cash flows
Note(s)
2024
2023
$
$
Cash flows from operating activities
Receipts from customers
24(a)
87,218,894
141,184,750
Payments to suppliers and employees
24(a)
(72,219,596)
(63,506,882)
Cash generated from operations
14,999,298
77,677,868
Finance income received
5,935,549
5,093,760
Finance costs paid
(5)
(4)
Taxation paid
24(b)
(6,230,745)
(19,784,637)
Net cash inflow from operating activities
14,704,097
62,986,987
Cash flows from investing activities
Purchase of plant and equipment
(14,968,890)
(12,869,246)
Purchase of other assets
–
(15,274)
Payments for exploration and evaluation capitalised
13
(846,628)
(1,621,616)
Loan to joint operation: Thaba
(5,428,668)
–
Loan to joint operation: Tizer
(5,148)
(584)
Loan repayment/(granted to): Forward Africa Mining
6,210,677
(238,944)
Transfer to guarantee asset
(301,979)
(823,144)
Investment in Iolite
(347,404)
–
Net cash outflow from investing activities
(15,688,040)
(15,568,808)
Cash flows from financing activities
Payment of lease liabilities
25(a)
(571,108)
(405,905)
Payment for treasury shares
25(b)
(2,053,261)
(4,912,348)
Dividends paid
(23,363,901)
(35,460,674)
Net cash (outflow)/inflow from financing activities
(25,988,270)
(40,778,927)
Net (decrease)/increase in cash and cash equivalents
(26,972,213)
6,639,252
Effect of exchange fluctuations on cash held
656,931
(3,761,823)
Cash and cash equivalents at the beginning of the reporting period
124,159,854
121,282,425
Cash and cash equivalents at the end of the reporting period
97,844,572
124,159,854
1.
Reporting entity
Sylvania Platinum Limited (“Sylvania” or “the Company”) is a limited company incorporated and domiciled in Bermuda
whose shares are publicly traded on the Alternative Investment Market (AIM) of the London Stock Exchange. Sylvania’s
registered office is at Clarendon House, 2 Church Street, Hamilton HM11, Bermuda. These consolidated financial statements
comprise the Company, its subsidiaries (collectively the Group) and investments in joint arrangements.
2.
Basis of accounting
These consolidated financial statements have been prepared in accordance with IFRS® Accounting Standards. It was
authorised for issue by the Company’s Board of Directors on 9 September 2024.
Details of the Group’s material accounting policies are included in note 6.
The related changes to material accounting policies are described in note 5.
3.
Functional and presentation currency
The presentation currency of the Group’s consolidated financial statements is in US Dollars. The functional currency of
the parent entity is US Dollars. All amounts have been rounded to the nearest US Dollar, unless otherwise indicated.
4.
Material accounting judgements, estimates and assumptions
In preparing these consolidated financial statements, management has made judgements and estimates that affect the
application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
Estimates and underlying assumptions are continuously evaluated, including expectations of future events that are
believed to be reasonable under the circumstances. Revisions to estimates are recognised prospectively.
Judgements, assumptions and estimation uncertainties
Information about assumptions and estimation uncertainties at 30 June 2024 that have a significant risk of resulting in
a material adjustment to the carrying amounts of assets and liabilities in the next financial year is included in the
following notes:
• Note 13
– exploration and evaluation assets: determining whether future economic benefits are likely either from future exploration,
sale or where activities have not reached a stage which permits a reasonable assessment of the existence of reserves;
• Note 14
– impairment of property, plant and equipment: determining the fair value of cash-generating units;
• Note 22
– provision for restoration and rehabilitation and decommissioning of plant and equipment: determining the provision
as there are numerous factors that will affect the ultimate liability payable.
Note 13 – Exploration and evaluation assets
The application of the Group’s accounting policy for exploration and evaluation expenditure requires judgement in
determining whether future economic benefits are likely either from future exploration or sale for activities that have not
reached a stage which permits a reasonable assessment of the existence of reserves (refer to accounting policy note 6 (k)).
The Group has valid mining licences for all the projects and is still exploring and evaluating the mineral resources and is
determining the technical feasibility and commercial viability of the projects.
The determination of a joint ore reserves committee (JORC) resource or South African Code for Reporting of Exploration
Results, Mineral Resources and Mineral Reserves (SAMREC) is itself an estimation process that requires varying degrees
of uncertainty depending on sub-classification and these estimates directly impact the point of deferral of exploration
and evaluation expenditure. The deferral policy requires management to make certain estimates and assumptions about
future events or circumstances, in particular, whether an economically viable operation can be established. Estimates and
assumptions made may change if new information becomes available. If, after expenditure is capitalised, information
becomes available that suggests that the recovery of expenditure is unlikely, the amount capitalised is written off to profit
or loss in the period in which the new information becomes available.
Key assumptions used in the assessment of impairment of exploration and evaluation assets
Management performs impairment assessments at the end of each reporting period. Management considers possible
impairment indicators when judgement is applied when performing the assessment. The recoverable amount for
exploration and evaluation assets are generally determined as the present value of estimated future cash flows.
Management has performed an impairment assessment, including sensitivities, resulting in sufficient headroom.
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Notes to the consolidated financial
statements continued
4.
Material accounting judgements, estimates and assumptions continued
Note 13 – Exploration and evaluation assets continued
Discount rate – Ranges between 12.3% and 17.5% was used for the pre-tax discount rate (2023: ranges between 13.81%
and 17.5%).
Commodity price – The Group has used forecasted long-term commodity prices obtained from a reputable publication:
$1,529/oz (2023: $1,596/oz) for platinum, $1,145/oz (2023: $1,168/oz) for palladium and $6,103/oz (2023: $7,918) for rhodium.
Platinum group metals are priced in USD. The US$/ZAR exchange rate used in the discounted cash flow model long-term:
19.97 ZAR/$1 (2023: 18.76 ZAR/$1).
Note 14 – Impairment of property, plant and equipment
The Group assesses each asset or cash-generating unit (CGU) (individual dump operations) at the end of each reporting
period to determine whether any indication of impairment exists. Where an indicator of impairment exists, a formal
estimate of the recoverable amount is made, which is considered to be higher than the fair value less costs of disposal
and value in use. These assessments require the use of estimates and assumptions such as long-term commodity prices,
discount rates, operating costs, future capital requirements, exploration potential and operating performance.
These estimates and assumptions are inherently uncertain and could change over time, which may impact the recoverable
amount of assets and/or CGUs. Refer to note 14.
The recoverable amount is generally determined as the present value of estimated future cash flows arising from the
continued use of the asset. The cash flows utilised by management are based on the latest business plan and production
forecasts for FY2025. The cash flows used in the discounted cash flow are pre-tax and are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset. Management has assessed its CGUs as being an individual mine site or retreatment plant (ie individual dump
operations), which is the lowest level for which cash inflows are largely independent of those of other assets. Refer to the key
assumptions used in the assessment of impairment of assets for further details on assumptions and estimates in relation to
impairment.
Key assumptions used in the assessment of impairment of assets
The recoverable amounts of the Group’s CGU’s have been based on cash flow projections as at 30 June 2024. The internal
financial model is based on the known and confirmed resources for each operation.
The discounted cash flow model is sensitive to changes in the available resources, discount rates, commodity price and
operating costs. Changes in key assumptions could cause the carrying value of assets to exceed their recoverable amounts.
Management has performed an impairment assessment, including sensitivities, resulting in sufficient headroom.
Resources – The resources for each plant, including the PGM grade and expected recoveries that have been modelled
are based on extensive test work, sampling and surveying.
Discount rate – The discount rate reflects management’s estimate of the time value of money and the risk associated with
the plants. A range between 12.3% and 17.5% was used for the pre-tax discount rate (2023: ranges between 13.81% and
17.5%).
Commodity price – The Group has used forecasted long-term commodity prices obtained from a reputable publication:
$1,529/oz (2023: $1,596) for platinum, $1,145/oz (2023: $1.168/oz) for palladium and $6,103/oz (2023: $7,918) for rhodium.
Sensitivities have also been run at lower prices.
Operating costs – Operating costs, being the cost incurred to support and sustain the operations, are calculated on
a Rand/ton basis, contractor rates and planned labour.
Exchange rates – Platinum group metals are priced in USD. The USD/ZAR exchange rate used in the discounted cash
flow model in the long term: 19.97 ZAR/$1 (2023: 18.76 ZAR/$1).
4.
Material accounting judgements, estimates and assumptions continued
Note 22 – Provision for restoration and rehabilitation and decommissioning of plant
and equipment
The Group assesses its restoration and rehabilitation and decommissioning of plant and equipment provision annually.
Significant estimates and assumptions are made in determining the provision as there are numerous factors that will
affect the ultimate liability payable. These factors include estimates of the extent and costs of rehabilitation activities,
technological changes, regulatory changes, cost increases as compared to the inflation rates, and changes in discount rates.
These uncertainties may result in future actual expenditure differing from the amounts currently provided.
The following are the significant assumptions and related sensitivities:
30 June
2024
30 June
2023
Long-term CPI
4.5%
5.0%
Pre-tax discount rate (various due to expected life of mine)
8.30% – 11.92%
8.75% – 12.20%
Decrease in total environmental rehabilitation provisions as a result of a 1% increase
in discount rate ($)
381,570
335,640
Increase in total environmental rehabilitation provisions as a result of a 1% decrease
in discount rate ($)
429,371
372,219
The 1% change applied in the sensitivity analysis was deemed appropriate and reasonable in relation to movements in
market rates.
The effect of subsequent changes to assumptions in estimating an obligation for which the provision was recognised as part
of the cost of the asset is adjusted against the asset. However, any reduction to the related asset will not exceed its carrying
amount and any excess is recognised as a gain.
If the change in estimate results in an increase in the restoration and rehabilitation liability and therefore an addition to
the carrying value of the asset, the Group is required to consider whether this is an indication of impairment of the asset
as a whole and test for impairment in accordance with IAS 36.
The provision at the reporting date represents management’s best estimate of the present value of the future rehabilitation
costs required.
5.
Changes in material accounting policies
A number of new or amended standards became effective for the current reporting period. Where these were applicable,
the Group did not have to change its accounting policies nor make retrospective adjustments as a result of adopting these
standards. Refer to note 7 for details thereof.
6.
Material accounting policies
(a) Basis of consolidation
(i) Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its power over the
entity. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control,
and continues to be consolidated until the date when such control ceases.
The financial statements of the subsidiaries are prepared for the same reporting period as the holding company, using
consistent accounting policies.
(ii) Non-controlling interests
Where ownership of a subsidiary is less than 100%, a non-controlling interest/s exists. A change in ownership interest of
a subsidiary, without a loss of control, is accounted for as an equity transaction.
(iii) Loss of control
If the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, the carrying amount
of any non-controlling interest and other components of equity, including the cumulative translation differences recognised
in equity. The consideration received and any investment retained is recognised at fair value and any resulting surplus or
deficit is recognised in profit or loss. The holding company’s share of the components previously recognised in other
comprehensive income is reclassified to profit or loss or retained earnings, as appropriate.
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Notes to the consolidated financial
statements continued
6.
Material accounting policies continued
(a) Basis of consolidation continued
(iv) Joint arrangements
Under IFRS 11 Joint Arrangements, investments in joint arrangements are classified as either joint operations or joint
ventures. A joint arrangement is classified as a joint operation, when the jointly controlling parties, known as the ‘joint
operators’, have rights to the assets and obligations for the liabilities relating to the arrangement.
The Group recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its share
of the jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial
statements under the appropriate headings.
(v) Transactions eliminated on consolidation
All intragroup balances, transactions and any unrealised gains and losses resulting from intragroup transactions
and dividends are eliminated.
(b) Revenue recognition
Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent it is
probable that the economic benefits will flow to the Group and the revenue can be reliably measured.
Revenue from contracts with customers
Revenue is recognised when the control of the goods has passed to the buyer and the costs incurred or to be incurred in
respect of the transaction can be measured reliably. Control of ownership is considered to pass to the customer at the time
of delivery of the goods to the customer.
For PGM concentrate sales, the sales are initially recognised at the date of delivery. Adjustments to the sales price occur
based on movements in the metal market price up to the date of final pricing. Final pricing is based on the monthly average
market price in the month prior to the month of settlement. The period between initial recognition and final pricing is
typically four months. Revenue is initially recorded at the estimated fair value of the consideration receivable. There are
no significant financing components in any sales arrangement within the Group.
The revenue adjustment mechanism embedded within sales arrangements has the characteristics of a commodity
derivative. Accordingly, the fair value of the final sales price adjustment is re-estimated continuously and changes in fair
value recognised as an adjustment to revenue in profit or loss and trade receivables in the statement of financial position.
In all cases, fair value is determined with reference to month end prices. Foreign exchange gains and losses on the
translation of revenue is recognised in profit or loss.
(c) Finance income
For all financial assets measured at amortised cost, interest income is recorded using the effective interest method.
The effective interest rate (EIR) is the rate that exactly discounts the estimated future cash payments or receipts through the
expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the
financial asset or liability. Interest income is included in finance income in profit or loss.
(d) Borrowing cost
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective assets.
Borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that
an entity incurs in connection with the borrowing of funds.
(e) Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a
lease in IFRS 16.
6.
Material accounting policies continued
(e) Leases continued
Group as a lessee
At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration
in the contract to each lease component on the basis of its relative stand-alone prices.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is
initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at
or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end
of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or
the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset
will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property,
plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted
for certain re-measurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s
incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.
The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources
and make certain adjustments to reflect the terms of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
• fixed payments, including in-substance fixed payments;
• variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
commencement date.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change
in future lease payments arising from a change in index or rate, or if there is a revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the
right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Group presents right-of-use assets that do not meet the definition of investment property in ‘property, plant and
equipment’ and lease liabilities in ‘Leases’ in the statement of financial position.
Leases of low-value assets:
The Group has elected not to recognise right-of-use assets and lease liabilities for leases where the underlying asset value
is $5,000 and below when it is new. The Group recognises the lease payments associated with these leases as an expense
on a straight-line basis over the lease term.
Group as a lessor
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.
Leases in which the Group does not substantially transfer all the risks and benefits of ownership of an asset are classified as
operating leases. The Group recognises lease payments received under operating leases as income on a straight-line basis
over the lease term as part of ‘Other Income’.
(f) Employee benefits
Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave due to be
settled wholly within 12 months of the reporting date are recognised in other payables in respect of employees’ services up
to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for
non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable.
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Notes to the consolidated financial
statements continued
6.
Material accounting policies continued
(g) Share-based payment transactions
Equity-settled transactions
The Group provides benefits to employees (including senior executives) of the Group in the form of share-based payments,
whereby employees render services in exchange for shares (equity-settled transactions).
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in
which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become
fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the
extent to which the vesting period has expired and (ii) the Group’s best estimate of the number of equity instruments that
will ultimately vest. No adjustment is made for the likelihood of market performance conditions being met as the effect
of these conditions is included in the determination of fair value at grant date.
The charge or credit recognised in profit or loss for a period represents the movement in cumulative expense recognised
as at the beginning and end of that period.
The Group does not subsequently reverse the amount recognised for services received from an employee if the vested
equity instruments are later forfeited, except for awards where vesting is only conditional upon a market condition or
non-vesting condition. These are treated as vested irrespective of whether or not the market or non-vesting condition is
satisfied, provided that all other performance and/or service conditions are satisfied.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been
modified, if the original terms of the award are met. In addition, an expense is recognised for any modification that increases
the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at the
date of modification. If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and
any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the
cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new awards are
treated as if they were a modification of the original award, as described in the previous paragraph.
Where an award is settled net of withholdings tax and the number of equity instruments equal to the monetary value of
the tax obligation is withheld, the entire transaction is classified as equity settled. The payments made are accounted for
as a deduction from equity except to the extent that the payment exceeds the fair value of the equity instruments withheld.
The dilutive effect of outstanding shares and bonus shares issued is reflected as additional share dilution in the
computation of earnings per share (refer note 12).
(h) Foreign currency translation
The functional currency of the parent company as well as the presentation currency of the Group is US Dollars. Each entity
in the Group determines its own functional currency and items included in the financial statements of each entity are
measured using that functional currency.
Transaction balances
Transactions in foreign currencies are initially recorded by the Group entities at their respective functional currency by
applying the exchange rates ruling at the date the transaction first qualifies for recognition. Monetary assets and liabilities
denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the reporting date.
All resulting exchange differences are taken to the statement of profit or loss and other comprehensive income.
Group companies
As at the reporting date on consolidation, the assets and liabilities of foreign subsidiaries are translated into the
presentation currency of the Group at the rate of exchange ruling at the reporting date and their statements of profit and
loss and other comprehensive income are translated at the average exchange rate for the year. The exchange differences
arising on the translation for consolidation are recognised in other comprehensive income.
Monetary assets and liabilities that are receivable from or payable to a foreign subsidiary and for which settlement is
neither planned nor likely to occur in the foreseeable future, forms part of the net investment in a foreign operation and
the resulting exchange differences are recognised in other comprehensive income. The repayment of such a balance is not
considered to be a partial disposal and the cumulative exchange differences recognised in other comprehensive income
is not reclassified to profit or loss, until the foreign entity is disposed of.
6.
Material accounting policies continued
(i) Income tax
Income tax expense comprise of current and deferred tax. It is recognised in profit or loss except to the extent that it relates
to a business combination or items recognised directly in equity or in other comprehensive income.
Current tax
Current tax assets and liabilities for the current period are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date, in the countries where the Group operates and generates taxable income.
Current tax relating to items recognised directly in other comprehensive income or equity is recognised in other
comprehensive income or equity and not in profit or loss. Management periodically evaluates positions taken in the tax
returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions
where appropriate.
Deferred tax
Deferred tax is recognised on temporary differences between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes.
Deferred tax assets and liabilities are recognised for all taxable temporary differences, except:
• in respect of temporary differences on the initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
• in respect of taxable temporary differences associated with investments in subsidiaries and associates, when the timing of
the reversal of the temporary differences can be controlled by the holding company or investor and it is probable that the
temporary differences will not reverse in the foreseeable future; and
• in respect of deductible temporary differences associated with investments in subsidiaries and associates, deferred tax assets
are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and
taxable profit will be available against which the temporary differences can be utilised.
Deferred tax assets are recognised for the carry forward of unused tax credits and any unused tax losses, to the extent that
it is probable that taxable profit will be available against which the carry forward of unused tax credits and unused tax losses
can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax
asset to be utilised. Unrecognised deferred tax assets are reassessed at the end of each reporting period and are recognised
to the extent that it has become probable that future taxable profits will be available to allow the deferred tax asset to be
recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the
end of the reporting period. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to
set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.
Royalties, resource rent taxes and revenue-based taxes
Royalties, resource rent taxes and revenue-based taxes are accounted for under IAS 12 when they have the characteristics
of an income tax. This is considered to be the case when they are imposed under government authority and the amount
payable is based on taxable income – rather than based on quantity produced or as a percentage of revenue – after
adjustment for temporary differences. For such arrangements, current and deferred income tax is provided on the same
basis as described above for other forms of taxation. Obligations arising from royalty arrangements that do not satisfy
these criteria are recognised as current liabilities and included in expenses.
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Notes to the consolidated financial
statements continued
6.
Material accounting policies continued
(j) Property, plant and equipment
Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment losses, if any.
The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing
the asset into operation, the initial estimate of the rehabilitation obligation and, for qualifying assets, borrowing costs.
The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to
acquire the asset. The capitalised value of finance leases is also included as right-of-use assets within property, plant and
equipment. Upon completion of construction, the assets are transferred into property, plant and equipment or properties.
When a construction project moves into the production stage, the capitalisation of certain construction costs cease and
costs are either regarded as part of the cost of inventory or expensed.
Depreciation
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows (for the current
and comparative periods):
• property – five years
• mining property – ten years
• plant – ten years
• leasehold improvements – three years
• computer equipment and software – three years
• furniture and fittings – six years
• office equipment – five years
• equipment – five years
• motor vehicles – five years
• construction in progress – not depreciated
• leased assets – over the period of the remaining lease
An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or
when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit
or loss when the asset is derecognised.
The asset’s residual values, useful lives and methods of depreciation/amortisation are reviewed at each reporting period
and adjusted for prospectively if appropriate.
Major maintenance and repairs
Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts of assets and
overhaul costs. Where an asset or part of an asset that was separately depreciated and is now written off is replaced, and
it is probable that future economic benefits associated with the replacement item will flow to the Group, the expenditure
is capitalised.
Where part of the asset was not separately considered as a component, the replacement value is used to estimate the
carrying amount of the replaced assets which is immediately written off. All other day-to-day maintenance costs is expensed
as incurred.
(k) Exploration and evaluation assets
Exploration and evaluation activity involve the search for mineral resources, the determination of technical feasibility and
the assessment of commercial viability of an identified resource. Exploration and evaluation expenditures in relation to each
separate area of interest are recognised as an exploration and evaluation asset in the year in which they are incurred when
the following conditions are satisfied:
(i) the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
• the exploration and evaluation expenditures are expected to be recouped through successful development and
exploration of the area of interest, or alternatively, by its sale; or
• exploration and evaluation activities in the area of interest have not at the reporting date, reached a stage which permits
a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant
operations in, or in relation to, the area of interest are continuing.
6.
Material accounting policies continued
(k) Exploration and evaluation assets continued
Exploration and evaluation assets are measured at cost and include acquisition of rights to explore, gathering exploration
data through geophysical studies, exploratory drilling, trenching and sampling and associated activities and an allocation
of depreciation and amortisation of assets used in exploration and evaluation activities. General and administrative costs
are only included in the measurement of exploration and evaluation costs where they are related directly to operational
activities in a particular area of interest.
Where a decision has been made to proceed with development in respect of a particular area of interest and once JORC or
SAMREC compliant reserves are established, the relevant exploration and evaluation assets are tested for impairment and
the balance is then transferred to mine ‘construction in progress’. No amortisation is charged during the exploration and
evaluation phase.
Upon transfer of ‘exploration and evaluation assets’ into ‘construction in progress’, all subsequent directly attributable
expenditure on the construction, installation or completion of infrastructure facilities is capitalised.
The Group assesses at each reporting date whether there is an indication that an asset (or CGU) may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the Group estimates the assets or CGU’s
recoverable amount.
An asset’s recoverable amount is higher than an assets or CGU’s fair value less costs of disposal and its value in use and
is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those
from other assets or groups of assets, in which case the asset is tested as part of a larger CGU.
When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered to be impaired and
is written down to its recoverable amount. In calculating value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset or CGU. In determining fair value less costs of disposal, recent market transactions are taken into
account, if available. If no such transactions can be identified, an appropriate valuation model is used. These calculations
are corroborated by valuation multiples, quoted share prices for publicly traded subsidiaries or other available fair value
indicators.
Management performs impairment assessments at the end of each reporting period. Management considers possible
impairment indicators when judgement is applied when performing the assessment. The assessment is based on the
different levels of confidence of each project.
Impairment losses of continuing operations are recognised in profit or loss in those expense categories consistent with
the function of the impaired asset.
An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment
losses may no longer exist or may have decreased. If such indication exists, the Group estimates the assets or CGU’s
recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions
used to determine the asset’s recoverable amount since the last impairment loss was recognised. The reversal is limited so
that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would
have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such
reversal is recognised in profit or loss. An impairment loss in respect of goodwill is not reversed.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying
amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the
exploration and evaluation asset (for the CGU(s)) to which it has been allocated being no larger than the relevant area of
interest) is estimated to determine the extent of the impairment loss (if any).
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate
of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount
that would have been determined had no impairment loss been recognised for the asset in previous years.
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Notes to the consolidated financial
statements continued
6.
Material accounting policies continued
(l) Financial instruments
(i) Recognition and initial measurement
Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and
financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or a financial liability is initially
measured at fair value plus or minus, for an item not at fair value through profit or loss (FVTPL), transaction costs that
are directly attributable to its acquisition or issue.
A trade receivable without a significant financing component is initially measured at the transaction price.
(ii) Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified and measured either at: amortised cost; FVOCI for equity investment;
or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for
managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting
period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present
subsequent changes in the investment’s fair value in other comprehensive income (OCI). This election is made on an
investment-by-investment basis.
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL.
On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be
measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch
that would otherwise arise.
Financial assets – business model assessment
The Group makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level
because this best reflects the way the business is managed and information is provided to management. The information
considered includes:
• the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether
management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile,
matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realising
cash flows through the sale of the assets;
• how the performance of the portfolio is evaluated and reported to the Group’s management;
• the risks that affect the performance of the business model (and the financial assets held within that business model) and
how those risks are managed;
• how managers of the business are compensated – eg, whether compensation is based on the fair value of the assets
managed or the contractual cash flows collected; and
• the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations
about future sales activity.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales
for this purpose, consistent with the Group’s continuing recognition of the assets.
Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are
measured at FVTPL.
6.
Material accounting policies continued
(l) Financial instruments continued
(ii) Classification and subsequent measurement continued
Financial assets – assessment whether contractual cash flows are solely payment of principal and interest
For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition.
‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal
amount outstanding during a particular period of time and for other basic lending risks and costs (eg, liquidity risk and
administrative costs), as well as a profit margin.
In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the
contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that
could change the timing amount of contractual cash flows such that it would not meet this condition. In making this
assessment, the Group considers:
• contingent events that would change the amount or timing of cash flows;
• terms that may adjust the contractual coupon rate, including variable-rate features;
• prepayment and extension features; and
• terms that limit the Group’s claim to cash flows from specified assets (eg, non-recourse features).
A prepayment feature is consistent solely with the payments of principal and interest criterion if the prepayment amount
substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include
reasonable additional compensation for early termination of the contract. Additionally, for a financial asset acquired at
a discount or premium to its contractual par value, a feature that permits or requires prepayment at an amount that
substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include
reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the
prepayment feature is insignificant at initial recognition.
Financial assets – subsequent measurement and gains and losses
(i) Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is
reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit
or loss. Any gain or loss on derecognition is recognised in profit or loss.
(ii) Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the
dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in
OCI and are never reclassified to profit or loss.
(iii) Financial assets at FVTPL
These assets are subsequently measured at fair value. Subsequent movements in fair value are recognised in profit or loss.
Any gain or loss on derecognition is recognised in profit or loss.
Financial liabilities – classification, subsequent measurement and gains and losses
Financial liabilities are classified and measured at amortised cost. Financial liabilities are subsequently measured at
amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised
in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
(iii) Derecognition
Financial assets
The Group derecognises a financial asset when: (i) the contractual rights to the cash flows from the financial asset expire;
or (ii) it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and
rewards of ownership of the financial asset are transferred; or (iii) the Group neither transfers nor substantially retains all
of the risks and rewards of ownership and it does not retain control of the financial asset.
Financial liabilities
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability
are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid
(including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
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Notes to the consolidated financial
statements continued
6.
Material accounting policies continued
(l) Financial instruments continued
(iv) Impairment
Financial instruments
The Group recognises loss allowances for expected credit losses (ECLs) on financial assets measured at amortised cost.
For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires lifetime ECLs to be recognised
from initial recognition of the trade receivables.
For all other financial assets, the general ECL model is used. This means that the probability of default occurring in the next
12 months is considered, together with the loss which may arise from such events of default, unless there has been a
significant increase in credit risk. Financial assets at amortised cost are stated net of the loss allowance in the statement of
financial position. Such financial assets are written off when there is no reasonable expectation of recovery.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue
cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical
experience and informed credit assessment and including forward-looking information such as macro-economic conditions,
economic growth and inflationary outlook in the short term.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.
The Group considers a financial asset to be in default when:
• the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as
realising security (if any is held); or
• the financial asset is more than 90 days past due.
The Group considers the bank balances to have low credit risk when the banks credit risk rating is equivalent to P-3 or higher
per Moody Investor Service.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the
reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed
to credit risk.
Measurement of ECL
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash
shortfalls (ie, the difference between the cash flows due to the entity in accordance with the contract and the cash flows that
the Group expects to receive).
ECLs are discounted at the effective interest rate of the financial asset.
Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit-impaired. A financial
asset is ‘credit- impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the
financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
• significant financial difficulty of the borrower;
• a breach of contract such as a default or being more than 90 days past due;
• the restructuring of a loan or advance by the Group on terms the Group would not consider otherwise; and
• it is probable that the borrower will enter bankruptcy or other financial reorganisation.
6.
Material accounting policies continued
(l) Financial instruments continued
(iv) Impairment continued
Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.
Write-off
The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering
a financial asset in its entirety or a portion thereof. The Group has a policy of writing off the gross carrying amount when
the financial asset is 180 days past due.
(v) Off-setting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when,
and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them
on a net basis or to realise the asset and settle the liability simultaneously.
(m) Trade and other receivables
Trade receivables (relating to the sale of PGM concentrate) is measured at fair value through profit or loss from the date
of recognition up to date of settlement, as it fails the IFRS 9 amortised cost requirement of cash flows representing solely
payment of principal and interest. The fair value changes due to non-market variability (that is, changes based on quantity
and quality of the contained metal) are considered to be variable consideration within the scope of IFRS 15 as Sylvania’s right
to consideration is contingent upon the physical attributes of the contained metal. The historic and current year differences
between the initial assay and final assay are not significant. Therefore, the variable consideration is not considered to be
constrained.
The fair value changes due to market variability (that is, changes in the commodity prices and exchange rates) are not in
the scope of IFRS 15 and are therefore not presented as revenue from contracts with customers. The changes in commodity
prices are accounted for as other revenue and disclosed separately from revenue from contracts with customers and
changes in exchange rates are accounted for as other income or expenses. Trade and other receivables (including trade
receivables not relating to the sale of PGM concentrate) are measured at amortised cost. Impairment of receivables
measured at amortised cost is determined using the expected credit loss model (refer note 27).
(n) Inventories
Included in inventories are consumables, spares, critical spares and smaller inventory items held in the stores. Inventories
are valued at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and the estimated costs necessary to make the sale.
Costs incurred in bringing each product to its present location and condition, are accounted for as follows:
• raw materials purchased are measured on a first-in, first-out basis; and
• finished goods and work in progress – cost of direct materials and labour, and a proportion of manufacturing overheads
based on normal operating capacity but excluding borrowing costs.
(o) Provisions
Where applicable, provisions are recognised when the Group has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
When the Group expects some or all of a provision to be reimbursed, for example, under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating
to any provision is presented in the statement of comprehensive income net of any reimbursement. If the effect of the time
value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the
liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
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Notes to the consolidated financial
statements continued
6.
Material accounting policies continued
(o) Provisions continued
(vi) Rehabilitation provision
The Group records the present value of estimated costs of legal and constructive obligations required to restore operating
locations in the period in which the obligation is incurred. The nature of these restoration activities includes dismantling
and removing structures, rehabilitating mines and tailings dams, dismantling operating facilities, closure of plant and waste
sites, and restoration, reclamation and revegetation of affected areas.
The obligation generally arises when the asset is installed or the ground/environment is disturbed at the production
location. When the liability is initially recognised, the present value of the estimated costs is capitalised by increasing the
carrying amount of the related mining assets to the extent that it was incurred by the development/construction of the
mine. Over time, the discounted liability is increased for the change in present value based on the discount rates that
reflect current market assessments and the risks specific to the liability.
The periodic unwinding of the discount is recognised in profit or loss as a finance cost. Changes in rehabilitation costs
relating to the asset will be recognised as additions or charges to the corresponding assets and rehabilitation liability when
they occur. Additional disturbances as a result of producing inventories are treated as a cost of producing inventories and
recognised in profit or loss when sold. For closed sites, changes to estimated costs are recognised immediately in profit or
loss.
(p) Cash and cash equivalents
Cash include notes and coins on hand and cash held with banks rated by Moody’s as Ba2, B1 and Baa3. Cash equivalents are
highly liquid financial assets with original maturities three months or less, which are subject to insignificant risk of changes
in their fair value and are used by the Group in the management of its short-term commitments. These include short-term
deposits.
(q) Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown in equity as a deduction, net of tax, from the proceeds.
Treasury shares (employee share plan shares) are deducted from equity and no gain or loss is recognised in profit and loss
on purchase, sale, issue or cancellation of the Group’s own equity instruments.
(r) Earnings per share
Basic earnings per share is calculated as net profit or loss attributable to members of the holding company, divided by the
weighted average number of ordinary shares.
Diluted earnings per share are calculated as net profit or loss attributable to members of the holding company, adjusted for:
• the after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised
as expenses; and
• other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential
ordinary shares, divided by the sum of the weighted average number of ordinary shares and dilutive potential ordinary
shares.
(s) Joint operations
A joint operation is a joint arrangement whereby the parties who have joint control of the arrangement have rights to the
assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of
control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of
the parties sharing control.
When a Group entity undertakes its activities under joint operations, the Company as a joint operator recognises in
relation to its interest in the joint operation:
• Its assets, including its share of any assets held jointly;
• Its liabilities, including its share of any liabilities incurred jointly;
• Its revenue from the sale of its share of the output arising from the joint operation;
• Its share of the revenue from the sale of the output by the joint operation; and
• Its expenses, including its share of any expenses incurred jointly.
6.
Material accounting policies continued
(s) Joint operations continued
The Company accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in
accordance with the IFRS Accounting Standard applicable to the particular assets, liabilities, revenues and expenses.
When a Group entity transacts with a joint operation in which a Group entity is a joint operator (such as a sale or
contribution of assets), the Company is considered to be conducting the transaction with the other parties to the joint
operation, and gains and losses resulting from the transactions are recognised in the Company’s consolidated financial
statements only to the extent of other parties’ interests in the joint operation.
When a Group entity transacts with a joint operation in which a Group entity is a joint operator (such as a purchase of
assets), the Company does not recognise its share of the gains and losses until it resells those assets to a third party.
7.
New standards and interpretations
Updates to the interpretations and amendments to certain IFRS Accounting Standards became effective during the period
under review of which detail is provided below.
New accounting standards, amendments to accounting standards and interpretations issued which are relevant to the
Group, but not yet effective on 30 June 2024, have not been adopted. It is expected that where applicable, these standards
and amendments will be adopted on each respective effective date. The Group continuously evaluates the impact of these
standards and amendments. The effect of the implementation of the new, amended or revised standards are not expected
to have a material impact, although assessments of the effect of the implementation of these new, amended or revised
standards are ongoing.
IFRS Accounting Standards and amendments effective for the first time for
June 2024 year
Number
Ef fective date
Executive summar y
Amendments to IAS 12, Income
Taxes: Deferred Tax related to
Assets and Liabilities arising
from a Single Transaction.
Annual periods beginning
on or after 1 January 2023.
(Published May 2021)
The amendments require companies to
recognise deferred tax on transactions that, on
initial recognition, give rise to equal amounts of
taxable and deductible temporary differences.
Narrow scope amendments to
IAS 1, Presentation of Financial
Statements, Practice statement 2
and IAS 8, Accounting Policies,
Changes in Accounting Estimates
and Errors.
Annual periods beginning
on or after 1 January 2023.
(Published February 2021)
The amendments aim to improve accounting
policy disclosures and to help users of the
financial statements to distinguish changes
in accounting policies from changes in
accounting estimates.
Amendments to IAS 12,
International Tax Reform –
Pillar Two Model Rules.
The deferred tax exemption
and disclosure of the fact that
the exception has been applied,
is effective immediately.
The other disclosure
requirements are effective
annual periods beginning on
or after 1 January 2023.
(Published May 2023)
These amendments give companies temporary
relief from accounting for deferred taxes
arising from the Organisation for Economic
Co-operation and Development’s (OECD)
international tax reform. The amendments
also introduce targeted disclosure requirements
for affected companies.
Amendments to IAS 1,
Non-current liabilities with
covenants.
Annual periods beginning
on or after 1 January 2024.
(Published January 2020 and
November 2022)
These amendments clarify how conditions with
which an entity must comply within twelve
months after the reporting period affect the
classification of a liability. The amendments also
aim to improve information an entity provides
related to liabilities subject to these conditions.
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Notes to the consolidated financial
statements continued
7.
New standards and interpretations continued
Number
Ef fective date
Executive summar y
IFRS 18, ‘Presentation and
Disclosure in Financial
Statements’
Annual periods beginning on
or after 1 January 2027
(Published April 2024)
The objective of IFRS 18 is to set out requirements
for the presentation and disclosure of information
in general purpose financial statements (financial
statements) to help ensure they provide relevant
information that faithfully represents an entity’s
assets, liabilities, equity, income and expenses.
IFRS 18 replaces IAS 1 ‘Presentation of Financial
Statements’ and focuses on updates to the
statement of profit or loss with a focus on the
structure of the statement of profit or loss; required
disclosures in the financial statements for certain
profit or loss performance measures that are
reported outside an entity’s financial statements
(that is, management-defined performance
measures); and enhanced principles on aggregation
and disaggregation which apply to the primary
financial statements and notes in general.
Many of the other existing principles in IAS 1 are
retained, with limited changes. IFRS 18 will not
impact the recognition or measurement of items in
the financial statements, but it might change what
an entity reports as its ‘operating profit or loss’.
Amendment to IFRS 16,
Leases on sale and leaseback.
Annual periods beginning on
or after 1 January 2024.
(Published September 2022)
These amendments include requirements for sale
and leaseback transactions in IFRS 16 to explain
how an entity accounts for a sale and leaseback
after the date of the transaction. Sale and leaseback
transactions where some or all the lease payments
are variable lease payments that do not depend on
an index or rate are most likely to be impacted.
Amendments IAS 7 and IFRS 7,
Supplier Finance
Arrangements.
Annual periods beginning on
or after 1 January 2024.
(Published May 2023)
These amendments require disclosures to enhance
the transparency of supplier finance arrangements
and their effects on a company’s liabilities, cash
flows and exposure to liquidity risk. The disclosure
requirements are the IASB’s response to investors’
concerns that some companies’ supplier finance
arrangements are not sufficiently visible, hindering
investors’ analysis.
Amendments to IAS 21, Lack
of Exchangeability
(Amendments to IAS 21)
Annual periods beginning on
or after 1 January 2025.
(Published August 2023)
An entity is impacted by the amendments when
it has a transaction or an operation in a foreign
currency that is not exchangeable into another
currency at a measurement date for a specified
purpose. A currency is exchangeable when there
is an ability to obtain the other currency (with a
normal administrative delay), and the transaction
would take place through a market or exchange
mechanism that creates enforceable rights
and obligations.
8.
Segment reporting
Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker (CODM), who is responsible for allocating resources and assessing performance of the reportable operating
segments. The CODM considers each segments net profit/(loss) as a measure for assessing the respective segment’s
performance. The CODM is identified as the Board. Segments reported are based on the Group’s operations and
performance is evaluated on PGM ounce production and operating costs. Operating costs consist of costs incurred in
the production and delivery of PGMs.
In applying IFRS 8 Operating Segments, judgements have been made by the CODM with regards to the identification of
reportable segments of the Group. These judgements are supported by the nature of the operations and the location
of the operations. The segments, as described below, are managed separately based on location and support
function grouping.
Sylvania Dump Operations
This reportable segment comprises the six tailings operational plants located in the Western as well as Eastern Limb.
A single operational segment exists for all the six tailings operational plants. Segment performance is evaluated on
PGM ounce production.
Exploration projects
This reportable segment comprises the Group’s exploration projects on the Northern Limb. The CODM reviews the
exploration projects as a reportable segment and makes relevant decisions based thereon. The three exploration projects
have similar economic characteristics (all in the PGM market) as they are all currently in the exploration phase with
geological and drilling costs being the main activity. The projects operate in the same jurisdiction.
Joint venture
This reportable segment comprises the Thaba JV, an unincorporated JV between the Company’s wholly owned South
African subsidiary, Sylvania Metals (Pty) Ltd and Limberg Mining Company (Pty) Ltd a subsidiary of ChromTech Mining
Company (Pty) Ltd. A single operational segment exists for the plant. Once commissioned the segment performance
will be evaluated on PGM and Chrome production. Management currently evaluates the segment based on associated
construction costs. Refer note 31.
Other
The ‘Other’ column is not a segment as defined however it is part of the CODM’s review and comprises corporate,
administration and other expenditure not allocated to the reported segments. These have been appropriately aggregated
into this column.
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Notes to the consolidated financial
statements continued
8.
Segment reporting continued
Segment information continued
Reportable segments
SDO
Exploration
projects
Other
Consolidated
$
$
$
$
30 June 2023
Segment assets
168,239,679
53,245,968
48,272,457
269,758,104
Capital expenditure*
45,627,032
47,238,978
2,248,744
(a)
95,114,754
Other assets**
122,612,647
6,006,990
46,023,713
(b)
174,643,350
Segment liabilities
21,344,657
7,649,856
1,399,544
(c)
30,394,057
Segment revenue
130,196,100
–
–
130,196,100
Segment interest received****
–
–
5,780,364
5,780,364
Net profit/(loss) for the year after tax
43,709,547
(55,592)
1,697,814
(d)
45,351,769
Included within the segment results:
Depreciation***
4,064,860
137
125,557
4,190,554
Direct operating costs***
57,225,856
–
–
57,225,856
Royalties tax
4,903,977
–
–
4,903,977
Other items:
Income tax expense
18,565,166
279
3,059,663
21,625,108
Foreign exchange loss on revenue
1,153,829
–
–
1,153,829
Capital expenditure during the year
13,767,870
1,623,307
381,217
15,772,394
*
Capital expenditure consist of property, plant and equipment.
**
Other assets consist of trade receivables: $34,420,448, cash and cash equivalents: $124,975,950, inventory: $5,103,550, other financial
assets: $6,352,325, current tax assets: $1,472,104, other assets: $30,024, deferred tax assets: $11,088 and other receivables: $1,293,555
(refer note 17).
*** The sum of depreciation amounting to $4,064,860 and direct operating costs amounting to $57,225,856 agree to the cost of sales as per
the consolidated statement of profit or loss. Refer note 10(b) and 10(c) for more detail.
**** Segment interest received was previously included as part of the segment revenue. This has now been disclosed as a separate line item
on the segment report. The comparative period has been re-presented.
2024
2023
$
$
Major items included in all Other
(a) Capital expenditure
Property, plant and equipment
2,751,961
2,248,744
2,751,961
2,248,744
(b) Other assets
Cash and cash equivalents
67,227,861
43,448,886
Other financial assets
759,880
2,077,423
Current tax asset/(liability)
18,200
(8,809)
Other receivables
2,183,839
506,213
70,189,780
46,023,713
(c) Liabilities
Leases
541,782
187,782
Other
430,078
1,177,016
Trade payables
6,287
34,746
978,147
1,399,544
8.
Segment reporting continued
Segment information continued
Other continued
The following tables present revenue and profit information as well as certain assets and liability information regarding
reportable segments for the years ended 30 June 2024 and 30 June 2023:
Reportable segments
SDO
Exploration
projects
All other
segments
Joint
venture
Consolidated
$
$
$
$
$
30 June 2024
Segment assets
128,522,565
49,248,054
72,941,741
6,855,977
257,568,337
Capital expenditure*
52,473,811
48,498,450
2,751,961
(a)
5,805,304
109,529,526
Other assets**
76,048,754
749,604
70,189,780
(b)
1,050,673
148,038,811
Segment liabilities
22,240,347
7,671,573
978,147
(c)
1,188,760
32,078,827
Segment revenue
81,712,471
–
–
–
81,712,471
Segment interest received
–
–
6,550,795
–
6,550,795
Net profit/(loss) for the year
after tax
7,528,579
(73,483)
(434,754)
(d)
(36,523)
6,983,819
Included within the segment
results:
Depreciation***
4,718,250
548
117,757
130
4,836,685
Direct operating costs***
64,283,406
–
–
35,327
64,318,733
Royalties tax
1,388,295
–
–
–
1,388,295
Other items:
Income tax expense
4,084,253
(632)
2,401,896
–
6,485,517
Foreign exchange loss on
revenue
112,808
–
–
–
112,808
Capital expenditure during
the year
10,370,345
846,628
625,668
5,638,889
17,481,530
*
Capital expenditure consist of property, plant and equipment.
**
Other assets consist of trade receivables: $30,074,953, cash and cash equivalents: $97,844,572, inventory: $5,667,761, other financial
assets: $7,382,817, current tax assets: $2,009,151, other assets: $409,530, deferred tax assets: $11,184 and other receivables: $4,638,843
(refer note 17).
*** The sum of depreciation amounting to $4,718,381 and direct operating costs amounting to $64,318,732 agree to the cost of sales as
per the consolidated statement of profit or loss. Refer note 10(b) and 10(c) for more detail.
A N N U A L R E P O R T 2 0 2 4 79
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S T RAT EGI C L EADERS HI P
CO RPO RAT E GO V ERNANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
78 A N N U A L R E P O R T 2 0 2 4
Notes to the consolidated financial
statements continued
8.
Segment reporting continued
Segment information continued
2024
2023
$
$
Major items included in all Other
(d) Unallocated income and expenses
Administrative salaries and wages
1,692,918
1,723,283
Auditor's remuneration
54,415
47,829
Consulting fees
349,060
9,092
Depreciation
117,756
125,557
Finance income
(6,550,796)
(5,780,364)
Finance cost
498,057
16,306
Foreign exchange loss
(889)
3,632
Legal expenses
37,154
109,503
Other income
(128,096)
(122,222)
Overseas travelling expenses
108,884
246,282
Profit on disposal of property, plant and equipment
(19,152)
4,586
Share-based payments
412,902
581,486
Income tax expense
8,278
428,084
Dividend tax
2,631,579
2,631,579
VAT write-off
1,132
32,231
Other
11,139
(63,667)
Profit on disposal of discontinued operations
–
(1,691,011)
Interest write-off FAM loan
1,210,413
–
434,754
(1,697,814)
Reconciliations of total segment amounts to corresponding amounts for the Group
(e) Depreciation
Included within cost of sales
4,718,380
4,064,860
Included within operating expenses
118,305
125,694
4,836,685
4,190,554
(f) Direct operating costs
Cost of sales excluding depreciation (Note 10(b))
47,321,580
36,949,179
Salaries and wages (Note 10(c))
16,997,153
20,276,677
64,318,733
57,225,856
Total segment revenue
Revenue generated in South Africa
81,712,471
130,196,100
The sales of concentrate are to two customers. Revenue is split according to customer
as detailed below:
Customer 1
81,712,471
121,362,209
Customer 2
–
8,833,891
81,712,471
130,196,100
Finance income by geographical location is detailed below:
Mauritius
2,746,833
513,881
South Africa
3,803,962
5,266,483
6,550,795
5,780,364
Analysis of location of non-current assets:
South Africa
117,333,057
101,508,191
Total non-current assets
117,333,057
101,508,191
9.
Revenue
2024
2023
$
$
Disaggregated revenue information
Revenue from contracts with customers – PGM sales
82,038,548
132,952,997
Other sales – provisionally priced sales
(326,077)
(2,756,897)
81,712,471
130,196,100
Other sales comprise subsequent movements in provisionally priced sales of -$326,077 (2023: $2,756,897 million). Foreign
exchange gains and losses relating to provisionally priced sales are recognised in “Other income” or “Other expenses”.
10. Income and expenses
2024
2023
$
$
(a) Other income
Profit on sale of held for sale asset
–
1,691,011
Rent received
56,398
49,081
Scrap sales
194,198
35,367
Other
40,725
16,675
Management fee
1,064
–
292,385
1,792,134
(b) Cost of sales and other expenses**
Included in cost of sales:
Depreciation – Property, plant and equipment
4,718,380
4,064,860
Electricity cost
9,395,034
7,620,551
Consumables
6,911,118
6,279,765
Maintenance
2,353,758
2,468,467
Share-based payments operations
134,179
300,730
Other*#
28,527,491
20,279,666
Included in other expenses:
Computer expenses
154,187
215,595
Consulting
349,060
14,604
Director's fees
491,250
515,000
Foreign exchange loss
–
3,632
Foreign exchange loss on revenue
112,808
1,153,829
Insurance
174,768
211,405
Interest write-off
1,210,413
–
Lease payments
5,056
3,817
Legal expenses
38,373
112,399
Other depreciation – Property, plant and equipment
118,305
125,694
Professional fees
57,105
21,941
Public relations and promotional expenses
152,389
149,406
Share registry expenses
67,055
77,140
Travel
82,981
246,282
55,053,710
43,864,783
(c) Staff costs
Salaries and wages included in cost of sales
16,997,153
20,276,677
Salaries and wages included in other expenses
835,030
587,840
Share-based payments admin
314,069
581,486
18,146,252
21,446,003
*
Includes individually immaterial amounts relating to amongst others contractors’ cost, rehabilitation costs, transport, equipment hire,
laboratory cost, cleaning and waste disposal, safety and security, surveyor cost and repairs and maintenance.
#
Includes auditors remuneration of $126,935 (2023: $98,487) as well as other services from the audit firm of $13,520 (2023: $12,983).
** The comparative period for cost of sales and other expenses have been re-presented to enhance disclosure.
A N N U A L R E P O R T 2 0 2 4 81
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CO RPO RAT E GO V ERNANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
80 A N N U A L R E P O R T 2 0 2 4
Notes to the consolidated financial
statements continued
10. Income and expenses continued
2024
2023
$
$
(d) Net finance income
Interest income on other financial assets
615,246
686,604
Interest on cash and cash equivalents
5,935,549
5,093,760
Finance income
6,550,795
5,780,364
Unwinding of discount on rehabilitation provision
(420,380)
(505,086)
Interest on leases
(71,647)
(70,582)
Other interest
(6,031)
(1,290)
Finance cost
(498,058)
(576,958)
Net finance income
6,052,737
5,203,406
11. Income tax
2024
2023
$
$
Income tax recognised in profit or loss
Current tax:
Current year tax
3,131,534
19,567,796
Deferred tax:
Relating to recognition, origination and reversal of temporary differences*
960,365
1,105,272
Relating to deferred tax on FCTR*
(237,961)
(1,679,539)
Normal income tax
3,853,938
18,993,529
Dividend withholding tax
2,631,579
2,631,579
Total tax expense
6,485,517
21,625,108
The prima facie income tax expense on pre-tax accounting profit or loss from
operations reconcile to the income tax expense in the financial statements
as follows:
Accounting profit before income tax
13,469,336
66,976,877
Tax expense at rate of 27%
3,636,722
18,083,803
(Non-taxable income)/Non-deductible expenses
(13,509)
555,967
Adjustment in respect of prior year
(485)
167,693
Benefit of tax losses and temporary differences not brought to account
231,210
186,066
Income tax expense
3,853,938
18,993,529
Sylvania Platinum Limited is a Bermudan incorporated company and has no tax liability under that jurisdiction with
respect to income derived.
The tax rate used for the current tax in the above reconciliation is the current corporate tax rate of 27% payable by
South African entities on taxable profits under South African tax law.
The tax rate used for the deferred tax in the above and below reconciliation and for the income tax, FY2024 is the corporate
tax rate of 27% (FY2023: 27%) that was payable by South African entities on taxable profits under South African tax law.
The Group continues to follow developments relating to the impact of the OECD’s Global Anti-base Erosion rules as part of
the Two-pillar solution to assess the potential impact thereof. It is noted that none of the jurisdictions in which the Group
operates have enacted the legislation, and therefore these are not yet applicable to the Group.
11. Income tax continued
2024
2023
$
$
Deferred tax assets comprise:
Unrealised gains and losses on foreign exchange
(5,577,323)
(5,607,447)
Rehabilitation provision
(1,142,437)
(1,091,030)
Other temporary differences *
(715,636)
(801,463)
Deferred tax liabilities comprise:
Exploration and evaluation assets
7,512,883
7,512,883
Property, plant and equipment
13,181,710
12,043,196
Other temporary differences
11,880
51,475
Deferred tax liabilities net
13,271,077
12,107,614
Deferred tax recognised in the Statement of Financial Position
Deferred tax asset
(11,184)
(11,088)
Deferred tax liability
13,282,261
12,118,702
Deferred tax liabilities net
13,271,077
12,107,614
* Mainly made up of temporary differences on leave pay provisions: $356,449 (2023: $323,876), incentive bonus provisions: $93,824 (2023:
$270,878) and lease liabilities: $104,344 (2023: $191,319). Included in the movement are items that are accounted for in other
comprehensive income.
2024
2023
$
$
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items:
Exploration and evaluation assets
44,188
27,880
Unrealised gains and losses on foreign exchange
2,842,736
678,335
Tax losses
1,631,736
1,427,301
Deductible temporary differences
1,056,784
3,222,459
5,575,444
5,355,975
The deductible temporary differences and tax losses do not expire under current tax legislation. Deferred tax assets
have not been recognised in respect of these items because of the uncertainty of the timing of probable future profits which
will be utilised.
A N N U A L R E P O R T 2 0 2 4 83
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S T RAT EGI C L EADERS HI P
CO RPO RAT E GO V ERNANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
82 A N N U A L R E P O R T 2 0 2 4
Notes to the consolidated financial
statements continued
12. Earnings per share
2024
2023
Cents
per share
Cents
per share
Basic earnings per share
2.66
17.01
Diluted earnings per share
2.65
16.95
$
$
Reconciliation of earnings used in calculating earnings per share
Earnings attributable to the ordinary equity holders of the company used in
calculating basic earnings per share
6,983,819
45,351,769
Earnings attributable to the ordinary equity holders of the company used in
calculating diluted earnings per share
6,983,819
45,351,769
No of shares
No of shares
Weighted average number of ordinary shares used as the denominator in calculating
basic earnings per share
262,822,278
266,545,150
Effect of dilution
Share options and bonus shares
944,889
961,356
Weighted average number of ordinary shares used as the denominator in calculating
basic earnings per share
263,767,167
267,506,506
13. Exploration and evaluation assets
Deferred
exploration
expenditure
$
2024
Balance at the beginning of the year
46,464,143
Foreign currency movements
368,388
Direct expenditure for the year
846,628
Balance at the end of the financial year
47,679,159
2023
Balance at the beginning of the financial year
46,087,453
Foreign currency movements
(1,244,926)
Direct expenditure for the year
1,621,616
Balance at the end of the financial year
46,464,143
Ultimate recovery of exploration and evaluation expenditure carried forward is dependent upon the recoupment of costs
through successful development and commercial exploitation, or alternatively, by sale of the respective areas.
The projects comprise Hacra and Aurora, located within the northern portion of the Northern Limb in the Waterberg
and Capricorn district, as well as Volspruit, located at the southern end of the Northern Limb of the Bushveld Igneous
Complex. The projects are PGM and Base Metal mining projects for which Mining Rights for PGM’s and Base Metals have
been awarded.
Extensive work was conducted during the reporting period to determine the level of confidence for each project.
11. Income tax continued
Reconciliation of deferred tax assets/(liabilities)
Opening
balance
Charged
profit or loss
Exchange
differences
Closing
balance
$
$
$
$
2024
Other temporary differences**
749,988
(74,933)
28,701
703,756
Rehabilitation provision
1,091,030
9,653
41,754
1,142,437
Unrealised gains and losses on foreign
exchange
5,607,447
(244,716)
214,592
5,577,323
Property, plant and equipment
(12,043,196)
(677,631)
(460,883)
(13,181,710)
Exploration and evaluation assets
(7,512,883)
–
–
(7,512,883)
(12,107,614)
(987,627)
(175,836)
(13,271,077)
2023
Other temporary differences**
616,084
224,350
(90,446)
749,988
Rehabilitation provision
1,402,609
(132,775)
(178,804)
1,091,030
Unrealised gains and losses on foreign
exchange
5,101,573
1,262,289
(756,415)
5,607,447
Property, plant and equipment
(11,222,148)
(2,299,401)
1,639,682
(11,881,867)
Exploration and evaluation assets
(7,512,883)
–
–
(7,512,883)
Change in rate
–
(161,329)
–
(161,329)
(11,614,765)
(1,106,866)
614,017
(12,107,614)
** Mainly made up of temporary differences on leave pay provisions: $356,449 (2023: $323,876), incentive bonus provisions: $93,824
(2023: $270,878) and lease liabilities: $104,344 (2023: $191,319). Included in the movement are items that are accounted for in other
comprehensive income.
A N N U A L R E P O R T 2 0 2 4 85
O V ERV I EW
S T RAT EGI C L EADERS HI P
CO RPO RAT E GO V ERNANCE
FINANCIAL STATEMENTS
SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
84 A N N U A L R E P O R T 2 0 2 4
Notes to the consolidated financial
statements continued
14. Property, plant and equipment
Property
Mining
property
Con-
struction
in
progress
Plant#
Equipment
Leasehold
improve-
ments
Computer
equipment
and
software
Furniture
and
fittings
Office
equipment
Motor
vehicles
Right-of-
use*#
Total
$
$
$
$
$
$
$
$
$
$
$
$
2024
At 1 July 2023
Cost
1,689,596
1,736,350
1,504,490
91,367,764
1,010,544
41,485
427,772
53,414
266,159
1,022,620
1,231,207
100,351,401
Accumulated depreciation
(100,688)
(1,658,436)
–
(47,414,845)
(708,766)
(24,268)
(350,571)
(37,461)
(176,725)
(678,007)
(551,023)
(51,700,790)
Net carrying value
1,588,908
77,914
1,504,490
43,952,919
301,778
17,217
77,201
15,953
89,434
344,613
680,184
48,650,611
Year ended 30 June 2024
Opening net carrying value
1,588,908
77,914
1,504,490
43,952,919
301,778
17,217
77,201
15,953
89,434
344,613
680,184
48,650,611
Additions
1,511
–
5,680,594
9,828,576
223,407
67,984
39,223
7,363
20,114
82,446
683,683
16,634,901
Disposals
–
–
–
(683,934)
–
–
(2,474)
–
–
–
(82,889)
(769,297)
Depreciation charge
(4,444)
–
–
(4,096,734)
(107,394)
(13,377)
(54,088)
(5,131)
(30,435)
(127,108)
(416,876)
(4,855,587)
Exchange differences
60,724
2,982
213,114
1,846,429
14,843
2,208
2,462
674
3,130
11,921
31,252
2,189,739
Closing net carrying value
1,646,699
80,896
7,398,198
50,847,256
432,634
74,032
62,324
18,859
82,243
311,872
895,354
61,850,367
At 30 June 2024
Cost
1,755,810
1,802,799
7,398,198
104,289,661
1,278,967
112,986
455,868
62,847
297,030
1,118,466
1,598,735
120,171,367
Accumulated depreciation
(109,111)
(1,721,903)
–
(53,442,405)
(846,333)
(38,954)
(393,544)
(43,988)
(214,787)
(806,594)
(703,381)
(58,321,000)
Net carrying value
1,646,699
80,896
7,398,198
50,847,256
432,634
74,032
62,324
18,859
82,243
311,872
895,354
61,850,367
* Includes movement relating to right-of-use assets. Refer note 28.
# The additions per above do not agree to the amounts reflected in the cash flow statement due to the inclusion of the right-of-use assets and
assets relating to the rehabilitation provision in the property, plant and equipment note.
Proper t y
Mining
proper t y
Con-
struction
in
progress
Plant #
Equipment
Leasehold
improve-
ments
Computer
equipment
and
sof t ware
Furniture
and
fit tings
Of fice
equipment
Motor
vehicles
Right-of-
use*#
Total
$
$
$
$
$
$
$
$
$
$
$
$
2023
At 1 July 2022
Cost
2,653,024
2,002,843
7,583,338
85,917,153
1,038,159
65,584
568,425
78,335
297,868
1,052,086
345,498
101,602,313
Accumulated depreciation
(111,229)
(1,912,971)
–
(50,905,480)
(726,332)
(36,320)
(458,707)
(62,059)
(181,089)
(662,415)
(246,734)
(55,303,336)
Net carrying value
2,541,795
89,872
7,583,338
35,011,673
311,827
29,264
109,718
16,276
116,779
389,671
98,764
46,298,977
Year ended 30 June 2023
Opening net carrying value
2,541,795
89,872
7,583,338
35,011,673
311,827
29,264
109,718
16,276
116,779
389,671
98,764
46,298,977
Additions
26,428
–
921,370
11,814,475
126,536
–
44,588
6,017
17,089
174,080
1,020,195
14,150,778
Disposals
(676,014)
–
–
(66,876)
(13,792)
–
(2,300)
–
–
(36,755)
(2,026)
(797,763)
Re-classification
–
–
(6,299,906)
6,299,906
–
–
–
–
–
–
–
–
Depreciation charge
(4,532)
–
–
(3,431,701)
(93,074)
(8,676)
(61,355)
(4,055)
(29,654)
(130,100)
(385,462)
(4,148,609)
Exchange differences
(298,769)
(11,958)
(700,312)
(5,674,558)
(29,719)
(3,371)
(13,450)
(2,285)
(14,780)
(52,283)
(51,287)
(6,852,772)
Closing net carrying value
1,588,908
77,914
1,504,490
43,952,919
301,778
17,217
77,201
15,953
89,434
344,613
680,184
48,650,611
At 30 June 2023
Cost
1,689,596
1,736,350
1,504,490
91,367,764
1,010,544
41,485
427,772
53,414
266,159
1,022,620
1,231,207
100,351,401
Accumulated depreciation
(100,688)
(1,658,436)
–
(47,414,845)
(708,766)
(24,268)
(350,571)
(37,461)
(176,725)
(678,007)
(551,023)
(51,700,790)
Net carrying value
1,588,908
77,914
1,504,490
43,952,919
301,778
17,217
77,201
15,953
89,434
344,613
680,184
48,650,611
* Right-of-use assets have been disclosed in the table above. This note was therefore re-presented from the prior year for comparability
purposes. Refer note 28.
# The additions per above do not agree to the amounts reflected in the cash flow statement due to the inclusion of the right-of-use assets and
assets relating to the rehabilitation provision in the property, plant and equipment note.
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SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
86 A N N U A L R E P O R T 2 0 2 4
Notes to the consolidated financial
statements continued
14. Property, plant and equipment continued
Non-current assets pledged as security
Leased assets are pledged as security for the related lease liability (refer note 21). No other non-current assets are pledged
as security for any liabilities.
Impairment of property, plant and equipment
Given the constant pressure on the commodity price and the global volatile economy and strain that the mining industry
is currently experiencing especially in South Africa, the directors performed an impairment assessment of the Group’s
property, plant and equipment at year-end. No impairment was considered necessary on all CGUs in the current year.
Commitments for plant construction
At 30 June 2024, commitments signed for continued improvements of the plants amounted to $5,451,386 (2023: $3,561,207).
15. Other financial assets
2024
2023
$
$
Loans and receivables:
Loans receivable (a)
5,928,104
7,068,571
Rehabilitation debtor (b)
289,517
261,012
Restricted cash (c)
1,165,196
823,144
Balance at the end of the financial year
7,382,817
8,152,727
Non-current asset
7,382,817
6,352,325
Current asset
–
1,800,402
Balance at the end of the financial year
7,382,817
8,152,727
(a) Loans receivable consist of:
• A loan amounting to $345,328 (2023: $317,073) was granted to TS Consortium by Sylvania South Africa (Pty) Ltd. The loan
is unsecured, bears interest at 7% per annum and is repayable on demand. The Group’s interest in the TS Consortium
joint operation is currently 75% in the assets and liabilities.
• A loan amounting to $5,582,776 (2023: $nil) was granted to Limberg Mining Company (Pty) Ltd by Sylvania Metals (Pty) Ltd.
Limberg Mining (Pty) Ltd is the JO partner on the Thaba JV with Sylvania Metals (Pty) Ltd. The loan is secured over the
ChromTech Mining Company (Pty) Ltd property, who is the holding company to Limberg Mining (Pty) Ltd. It bears interest
at the prime rate and is repayable in substantially equal consecutive quarterly payments with effect from the first
anniversary of the commissioning date and no later than the sixth anniversary of the commissioning date. Commissioning
date is estimated for February 2025. Refer note 31 for detail.
• A loan to Forward Africa Mining (Pty) Ltd was repaid during the period (2023: $902,285). The loan was secured over the
Grasvally Plant and bore interest at the Johannesburg Inter-Bank Offer Rate (JIBOR) + 3%, compounded monthly in
arrears. The loan was repayable in 15 equal instalments commencing at the end of the quarter following the first
anniversary of the effective date*.
• A loan relating to the sale of shares and claim agreement in respect of the Grasvally Chrome Mine (Pty) Ltd sale to
Forward Africa Mining (Pty) Ltd was repaid during the period (2023: $5,849,213). The loan was secured over the Grasvally
Plant, bore interest at the Johannesburg Inter-Bank Offer Rate (JIBOR) + 3%, compounded monthly in arears. The loan
was repayable in 15 equal instalments commencing at the end of the quarter following the first anniversary of the
effective date*.
* The total capital amount of $6,210,677 was repaid on 4 April 2024 and due to the early settlement of the loan it was mutually agreed to
write off the accrued interest on the loan, amounting to $1,210,413.
15. Other financial assets continued
(b) Contribution paid to the host mine for rehabilitation purposes. The debtor is ZAR-denominated and was translated at
a spot rate of ZAR18.19:$1 (2023: ZAR18.89:$1).
(c) Restricted cash relate to guarantees with Eskom, the Department of Mineral Resources and Energy (DMRE) and
Growthpoint.
The Group has pledged part of its short-term deposits, excluding interest earned, with a carrying value of $1,111,110
(2023: $719,414) in order to fulfil collateral requirements of the guarantees held below. The restricted cash balances relate
to funds set aside to serve as collateral against guarantees made to the DMRE in South Africa for environmental and
rehabilitation obligations as well as deposits to Eskom and Growthpoint (refer to the table below). Bank guarantees are
held as follows:
2024
2023
$
$
Eskom
1,051,711
635,258
The Department of Mineral Resources
40,563
66,014
Growthpoint
18,836
18,142
16. Cash and cash equivalents
2024
2023
$
$
Cash at bank and on hand
78,872,649
104,062,026
Short-term deposits
18,971,923
20,097,828
97,844,572
124,159,854
Cash at banks earn interest at floating rates on daily bank deposit rates. Short-term deposits are made for varying periods
of between one day and three months, depending on the immediate cash requirements of the Group, and earn interest at
the respective short-term deposit rates. The fair value of cash and short-term deposits is $97,844,572 (2023: $124,159 854).
At 30 June 2024, the Group had $1,709,764 (2023: $1,709,764) of undrawn borrowing facilities available. The Group only
deposits cash surpluses with major banks of high-quality credit standing. Refer note 27.
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SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
88 A N N U A L R E P O R T 2 0 2 4
Notes to the consolidated financial
statements continued
17. Trade and other receivables
2024
2023
$
$
Financial instruments
Trade receivables (not subject to provisional pricing) – fair value
9,801,756
9,301,077
Trade receivables (subject to provisional pricing) – fair value
20,148,379
24,999,154
Trade receivables – amortised cost
124,818
120,217
Non-financial instruments
Other receivables
4,638,843
1,293,555
34,713,796
35,714,003
Trade receivables are due from major minerals mining and processing companies.
Trade receivables (not subject to provisional pricing) are non-interest bearing and are generally on terms not exceeding
30 days.
Trade receivables (subject to provisional pricing) are non-interest bearing but are exposed to future commodity price
and exchange rate fluctuations over a period. It relates to revenue from contracts with customers and the Group has
an unconditional right to the consideration due as the performance conditions have been met.
Other receivables are non-interest bearing and are generally on 30 – 90-day terms. Included in other receivables are
pre-paid expenditure, VAT receivable and advances. The increase in prepayments is due to an advanced payment
with regards to the Share Buyback programme.
Trade receivables at amortised cost were considered in the ECL calculation (refer note 27).
18. Inventories
2024
2023
$
$
Stores and consumables
5,667,761
5,103,550
Inventories of $11,128,645 (2023: $9,354,689) were recognised as an expense during the current year and included in cost
of sales.
Stores and consumables
Included in stores and consumables are critical spares and consumables that are held in stock for engineering breakdowns.
19. Issued capital
Authorised capital
2024
2024
2023
No of shares
$
$
Ordinary shares with a par value of $0.01
1,000,000,000
10,000,000
10,000,000
Issued capital
2024
2023
2024
2023
$
$
$
$
Share capital
Ordinary shares
Ordinary shares fully paid
273,366,725*
279,000,000
2,733,667
2,790,000
* Including 11,765,211 treasury shares.
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per
share at shareholders’ meetings. In the event of winding up of the holding company, ordinary shareholders rank after all
creditors and are fully entitled to any proceeds on liquidation.
Date
Details
Number
of shares
$
1 July 2023
Opening balance
279,000,000
2,790,000
Cancellation of shares
(5,633,275)
(56,333)
30 June 2024
Closing balance
273,366,725
2,733,667
1 July 2022
Opening balance
280,155,657
2,801,557
Cancellation of shares
(1,155,657)
(11,557)
30 June 2023
Closing balance
279,000,000
2,790,000
On 4 March 2024, the Company announced the intention to conduct a Share Buyback programme (Share Buyback)
on-market which had a closing date of 30 April 2024.
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SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
90 A N N U A L R E P O R T 2 0 2 4
Notes to the consolidated financial
statements continued
21. Leases
Future
minimum
lease
payments
Finance
charges
Present
value of
minimum
lease
payments
due
$
$
$
Balance at 30 June 2024
Due within one year
543,896
(72,657)
471,239
Due between one and five years
572,182
(115,179)
457,003
1,116,078
(187,836)
928,242
Balance as at 30 June 2023
Due within one year
377,504
(46,776)
330,728
Due between one and five years
401,848
(21,015)
380,833
779,352
(67,790)
711,561
The Group entered into new commercial lease agreements during the period. Refer note 28.
22. Provisions
2024
2023
$
$
Balance at the beginning of the financial year
4,040,854
5,936,804
Foreign currency movements
155,627
(718,977)
Unwinding of discount factor
420,380
505,086
Change in estimate#
(385,613)
(1,006,045)
Derecognition*
–
(676,014)
Balance at the end of the financial year
4,231,248
4,040,854
# The total movement of $385,613 (2023: $1,006,045) in the estimate comprises a decrease in the rehabilitation provision for the period of
$580,538 (2023: $1,368,157), recognised in profit or loss, an increase in the decommissioning assets $194,925 (2023: $246,682) and an
increase in the restoration expense $115,430.
* The derecognition in 2023 relates to the sale of Grasvally Resource (Pty) Ltd and the related rehabilitation provision.
A provision is made for the present value of closure, restoration and environmental rehabilitation costs (which include
the dismantling and demolition of infrastructure, removal of residual materials and remediation of disturbed areas) in the
financial period when the related environmental disturbance occurs. The provision is based on the estimated future costs
using information available at the reporting date. These estimates are reviewed regularly to take into account any material
changes to the assumptions (refer note 4). However, actual costs will ultimately depend on future market prices for the
rehabilitation work required.
Rehabilitation is performed and paid for on an ongoing basis as mining properties are depleted. The majority of the
rehabilitation will be undertaken progressively over the life of the mine during the depletion of each respective mining
property. It is expected that the life of each mine could vary therefore, the timing of rehabilitation work is inherently
uncertain. Refer note 15 for detail of the guarantees in place with regard to the rehabilitation provision.
19. Issued capital continued
The table below shows the movement in the treasury share account for the year. The shares are being held to be issued
as bonus shares to senior management in recognition of the achievement of performance criteria. Refer to note 26 for
further details.
2024
2023
No of shares
No of shares
Balance at the beginning of the financial year
15,939,736
14,024,869
Shares purchased
2,693,750
4,825,524
Shares cancelled
(5,633,275)
(1,155,657)
Share options exercised and shares issued to directors
(1,235,000)
(1,755,000)
Balance at the end of the financial year
11,765,211
15,939,736
Of the 11,765,211 shares held in the treasury share account, 7,500,000 shares are ring-fenced for the EDEP.
20. Reserves
• Reserve for own shares
The reserve comprises the cost of the Company’s shares held by the Group as treasury shares. Refer to notes 19 and 26
for further details.
• Foreign currency translation reserve
The foreign currency translation reserve comprises the exchange differences arising from the translation of the financial
statements of foreign controlled entities.
• Share-based payment reserve
This reserve comprises the value of equity benefits provided to employees, consultants and directors as part of their
remuneration. Refer note 26.
• Non-controlling interests reserve
This reserve comprises the differences between the carrying value of non-controlling interests and the consideration
paid/received, where there has been a transaction involving non-controlling interest that does not result in a loss of
control.
• Equity reserve
This reserve arises from the recyclable reserves in the former holding company (Sylvania Resources (Pty) Ltd) as at the
date that Sylvania Platinum Limited was introduced as the ultimate holding company.
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SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
92 A N N U A L R E P O R T 2 0 2 4
Notes to the consolidated financial
statements continued
23. Trade and other payables
2024
2023
$
$
Trade payables
9,457,254
7,565,101
Accrued expenses
3,537,391
5,595,474
Other trade payables
642,431
362,365
13,637,076
13,522,940
Other trade payables are made up mainly of VAT payable to the local authorities. Trade and other payables are non-interest
bearing and are normally settled on 30-day terms, predominately payable in ZAR and located in South Africa.
24. Net cash inflow from operating activities
2024
2023
$
$
(a) Reconciliation of profit before tax to net cash flow from operating activities
Profit before income tax expense
13,469,336
66,976,877
Adjusted for:
(Gain)/loss on sale of property, plant and equipment
(19,323)
7,768
Interest and penalties
190
23,160
Forgiveness of debt
–
41,264
Foreign exchange (gain)/loss
(888)
3,632
Finance income
(6,550,796)
(5,780,364)
Finance cost
498,057
576,958
Depreciation
4,836,684
4,190,554
Rehabilitation provisions
(580,538)
(1,252,727)
Share-based payments
547,080
882,216
Profit on sale of discontinued operations
–
(1,691,011)
Profit on asset adjustment
(20,512)
(16,675)
Interest write-off
1,210,413
–
Management fee
(1,064)
–
Net operating profit before working capital changes
13,388,639
63,961,652
Changes in working capital:
Decrease/(increase) in trade and other receivables
5,619,232
12,142,479
Increase in inventories
(358,718)
(1,571,002)
(Decrease)/increase in trade and other payables
(3,649,855)
3,144,739
Cash generated from operating activities
14,999,298
77,677,868
Finance income received
5,935,549
5,093,760
Finance cost paid
(5)
(4)
Taxation paid
(6,230,745)
(19,784,637)
Net cash inflow from operating activities
14,704,097
62,986,987
(b) Taxation paid
Balance (owing)/receivable at the beginning of the year
1,472,104
3,486,225
Income tax recognised in profit or loss
(3,131,534)
(19,567,796)
Interest received/(paid)
(190)
(24,456)
Dividend tax
(2,631,579)
(1,842,105)
Foreign currency movements
69,605
(364,401)
Balance payable/(receivable) at the end of the year
(2,009,151)
(1,472,104)
Taxation paid
(6,230,745)
(19,784,637)
The above detail aims to provide the user with additional information.
25. Net cash outflow from financing activities
2024
2023
$
$
(a) Leases
Balance owing at the beginning of the year
(711,561)
(83,988)
Cash flow items
Lease payments during the year
571,108
405,905
Non-cash flow items
Additions of leases
(755,330)
(1,085,634)
Foreign currency movements
(32,459)
52,156
Closing balance
(928,242)
(711,561)
(b) Treasury shares
Treasury shares opening balance
(22,131,814)
(17,994,924)
Cash flow items
Purchase of treasury shares
(2,053,261)
(4,912,348)
Non-cash flow items
Share options and bonus shares exercised
923,345
763,901
Shares issued
Shares cancelled
56,333
11,557
Closing balance
(23,205,397)
(22,131,814)
(c) Bonus shares
Share-based payments opening balance
(4,789,474)
(4,671,159)
Non-cash flow items
Share options and bonus shares exercised
923,345
763,901
Bonus shares expensed
(547,080)
(882,216)
Closing balance
(4,413,209)
(4,789,474)
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SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
94 A N N U A L R E P O R T 2 0 2 4
Notes to the consolidated financial
statements continued
26. Share-based payment plan
2024
2023
$
$
Expense arising from equity-settled share-based payment transactions
(547,080)
(882,216)
Share bonus award
On 20 August 2021, 520,349 ordinary shares of $0.01 each in Sylvania Platinum Limited were allocated to certain employees
and senior management in recognition of the achievement of performance criteria. These shares have a vesting period
of three years and will vest on 19 August 2024. Employees are required to achieve a minimum of a three rating on their
performance appraisals.
On 20 August 2022, 767,000 ordinary shares of $0.01 each in Sylvania Platinum Limited were allocated to certain employees
and senior management in recognition of the achievement of performance criteria. These shares have a vesting period
of three years and will vest on 19 August 2025. Employees are required to achieve a minimum of a three rating on their
performance appraisals.
On 27 August 2023, 798,000 ordinary shares of $0.01 each in Sylvania Platinum Limited were allocated to certain employees
and senior management in recognition of the achievement of performance criteria. These shares have a vesting period
of three years and will vest on 26 August 2026. Employees are required to achieve a minimum of a three rating on their
performance appraisals.
Bonus shares
Nominal
value at
issue date
Balance
at the start
of the year
Issued
during
the year
Balance
at the end
of the year
$
Number
Number
Number
2024
20 August 2021
0.10
520,349
–
520,349
20 August 2022
0.10
767,000
–
767,000
27 August 2023
0.10
–
779,000
779,000
Total
1,287,349
779,000
2,066,349
2023
22 August 2020
0.10
1,435,000
–
1,435,000
20 August 2021
0.10
520,349
–
520,349
20 August 2022
0.10
–
767,000
767,000
1,955,349
767,000
2,722,349
The fair values of the bonus shares are based on the share price at grant date.
2024
2023
Fair value at grant date (GBP)
0.80
0.88
Fair value at grant date (USD)
1.01
1.04
Share price at grant date (GBP)
0.80
0.88
Share price at grant date (USD)
1.01
1.04
Expected life (years)
3
3
27. Financial instruments
The ongoing impact of the lower than anticipated market prices, the global volatile economy and unpredictable
geopolitical landscapes worldwide, among others, is already priced into the inputs, which for the Group mostly relates
to commodity price risk used in the level 2 fair valuation techniques as determined by the market and which is more
clearly explained below.
2024
2023
$
$
Financial assets – carrying amount
Financial assets at amortised cost
Trade and other receivables¹
124,818
120,217
Cash and cash equivalents
97,844,572
124,159,854
Other financial assets
7,382,817
8,152,727
105,352,207
132,432,798
Financial asset at fair value through profit and loss (FVPL)
Trade and other receivables²
29,950,135
34,300,231
Financial liabilities – carrying amount
Financial liabilities at amortised cost
Leases
(928,242)
(711,561)
Trade and other payables³
(13,063,054)
(13,202,296)
(13,991,296)
(13,913,857)
1 Prepayments and VAT amounting to $727,842 (2023: $731,830) are excluded from the trade and other receivables balance as this analysis is
required only for financial instruments.
2 The fair value was determined using the commodity prices and foreign exchange rates.
3 VAT amounting to $1,353,169 (2023: $545,804) are excluded from the trade and other payables balance as this analysis is required only for
financial instruments.
Due to the short-term nature of the trade and other receivables at amortised cost and cash and cash equivalents, their
carrying amount is considered to be the same as their fair value. For the other financial assets at amortised cost, the fair
values are also not significantly different from their carrying amounts. The fair values of the other financial assets were
calculated based on cash flows discounted using the prime rate. They are classified as level 3 fair values in the fair value
hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.
IFRS Accounting Standards accounting standards establishes a fair value hierarchy that categorises the inputs to valuation
techniques used to measure fair value into three levels:
• Level 1 – Quoted prices in active markets for the same instrument
• Level 2 – Valuation techniques for which significant inputs are based on observable market data
• Level 3 – Valuation techniques for which any significant input is not based on observable market data
The following financial instruments are carried at fair value:
2024
2023
Fair value
hierarchy
Valuation
technique and
key inputs
$
$
Financial asset at fair value through
profit or loss (FVPL)
Trade and other receivables
29,950,135
34,300,231
Level 2
Quoted market
metal price and
exchange rate
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SHAREHOLDER INFORMATION
S Y L V A N I A P L A T I N U M L I M I T E D
96 A N N U A L R E P O R T 2 0 2 4
Notes to the consolidated financial
statements continued
27. Financial instruments continued
Foreign currency risk continued
A reasonably possible strengthening/(weakening) of the Rand (ZAR) against the US Dollar (USD) at 30 June 2024 would have
affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or
loss by the amounts shown below.
The analysis assumes that all other variables remain constant and ignores any impact of forecast sales and purchases. 5%
was applied due to the movement in the spot exchange rate from 30 June 2023 ($/ZAR – 1:118.89) to 30 June 2024 ($/ZAR –
1:18.19), reflecting a net movement in spot rate of 3.69%. This was rounded up to 5% for purposes of the sensitivity analysis.
2024
2023
Profit/
(loss)
Equity
increase/
(decrease)
Profit /
(loss)
Equit y
increase/
(decrease)
$
$
$
$
5% (2023:15%) appreciation
(2,004,726)
2,004,726
(7,714,664)
7,714,664
5% (2023:15%) depreciation
1,813,800
(1,813,800)
(5,702,143)
5,702,143
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Group’s exposure to interest rate risk arises from cash balances, loans receivable and leases.
Cash and cash equivalents are exposed to ZAR deposit rates.
The Group does not engage in any hedging transactions to manage interest rate risk. In conjunction with external advice,
management consideration is given on a regular basis to alternative financing structures with a view to optimising the
Group’s funding structure. The Group manages the risk by maintaining an appropriate mix between fixed and floating rate
liquid funds.
The financial instruments exposed to movements in variable interest rates are as follows:
2024
2023
$
$
Financial assets
Cash and cash equivalents
97,844,572
124,159,854
Loans receivable
5,582,776
6,751,498
103,427,348
130,911,352
Financial liabilities
Leases
(928,242)
(711,561)
Credit risk
Credit risk is the risk that a contracting entity will not meet its obligation under a financial instrument or customer contract
that will result in a financial loss to the Group. The Group is exposed to credit risk from its financing activities, including
deposits with banks and financial institutions and its operating activities, primarily for trade receivables. The carrying
amount of these financial assets represents the maximum credit exposure.
Receivables balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not
significant. The Group is subject to concentration risk due to the exposure to one customer at year-end. However, this risk is
not considered significant as the customers adheres to the stipulated payment terms and has never defaulted on a payment
since inception. The credit risk exposure is 100% in South Africa and the Group only operates in the mining industry.
Trade and other receivables
For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires lifetime ECLs to be recognised
from initial recognition of the trade receivables.
For other receivables ECLs are calculated based on the general model, which take into account the probability of default
(PD), the exposure at default (EAD) and the loss given default (LGD). Rates are obtained from reputable ratings agencies.
27. Financial instruments continued
Financial risk management objectives and policies
The Group’s principal financial liabilities comprise trade and other payables and leases. The Group has various financial
assets such as trade and other receivables and cash and short-term deposits, which arise directly from its operations.
Risk exposures and responses
The Group manages its exposure to key financial risks in accordance with the Group’s financial risk management policy.
The objective of the policy is to support the delivery of the Group’s financial targets while protecting future financial
security. The main risks that could adversely affect the Group’s financial assets, liabilities or future cash flows are market
risks (foreign currency risk, commodity price risk and interest rate risk), liquidity risk and credit risk.
The Group’s senior management oversees the management of financial risks. The Board ensures that the Group’s financial
risk taking activities are governed by appropriate policies and procedures and that financial risks are identified, measured
and managed in accordance with Group policies and the Group’s risk appetite. It is the Group’s policy that no trading in
derivatives for speculative purposes shall be undertaken. At this stage, the Group does not currently apply any form of
hedge accounting.
The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed-to-floating interest
rates on the debt and the proportion of financial instruments in foreign currencies are all constant.
The following assumptions have been made in calculating the sensitivity analysis:
• The impact on equity is the same as the impact on profit before tax, unless stated otherwise.
Capital risk management
The Group manages its capital to ensure that all companies within the Group will be able to continue as a going concern
while maximising the return to stakeholders through the optimisation of the debt and equity balance. Due to the inherent
risks involved in mining, the Board prefers not to utilise funding from financing institutions. The Group’s overall strategy
remains unchanged during the years ended 30 June 2024 and 30 June 2023.
The capital structure of the Group consists of equity attributable to equity holders of the holding company comprising
issued capital, reserves and retained profits. None of the Group’s companies are subject to externally imposed capital
requirements.
Operating cash flows are used to maintain and expand operations, as well as to make routine expenditures such as tax,
dividends and general administrative outgoings.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market prices comprise three types of risk: interest rate risk, commodity price risk and currency risk.
Financial instruments affected by market risk include receivables, loans, leases and deposits.
Foreign currency risk
The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s financing and
operating activities (when revenue or expense is denominated in a different currency from the Company’s functional
currency). The Group manages foreign currency risk through the strategic business model, including the monitoring of
the US$/ZAR ratio of cash held to ensure minimum exposure to exchange rate fluctuations. This has proved to be
exceptionally successful.
The financial instruments exposed to foreign currency risk are as follows:
2024
2023
$
$
Financial assets
Trade and other receivables
20,148,379
24,999,154
Cash and cash equivalents
20,963,674
26,431,940
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98 A N N U A L R E P O R T 2 0 2 4
Notes to the consolidated financial
statements continued
27. Financial instruments continued
Credit risk continued
Trade and other receivables continued
Forward-looking macro-economic conditions and factors are considered when determining the ECLs for trade receivables,
namely economic growth and inflationary outlook in the short term.
The following table provides information about the exposure to credit risk and ECLs for trade receivables and other financial
assets as at 30 June 2024.
Weighted
average
loss rate
Gross
carrying
amount
Loss
allowance
Credit
impaired
%
$
$
2024
Trade receivables – FVTPL
–
29,950,135
–
No
Other receivables – Current
0.61160
2,682,650
16,407
No
Prepayments and VAT amounting to $2,081,011 are excluded from the trade and other receivables balance as this analysis is required only for
financial instruments. The gross and net carrying values are the same amounts as the loss allowance and were not recognised. This is deemed
immaterial for the Group.
Weighted
average
loss rate
Gross
carr ying
amount
Loss
allowance
Credit
impaired
%
$
$
2023
Trade receivables – FVTPL
–
34,300,231
–
No
Other receivables – Current
0.61160
681,683
4,169
No
Prepayments and VAT amounting to $731,830 are excluded from the trade and other receivables balance as this analysis is required only for
financial instruments.
The gross and net carrying values are the same amounts as the loss allowance and were not recognised. This is deemed immaterial for
the Group.
Other financial assets
Gross
carrying
amount
Loss
allowance
Credit
impaired
$
$
2024
Other financial assets
7,382,817
45,153
No
Gross
carr ying
amount
Loss
allowance
Credit
impaired
$
$
2023
Other financial assets
8,152,727
49,862
No
27. Financial instruments continued
Credit risk continued
Other financial assets continued
For other financial assets, ECL is calculated as a function of PD, LGD and EAD. The Group allocates probability of default
based on external and internal information. The other financial assets are not rated by a formal rating agency and therefore
allocates internal credit ratings and default rates taking into account forward-looking information, based on the debtors
profile and financial status. LGD is based on the Basel model. Worldwide, and especially in South Africa, economies have
faced a series of global and local disruptions, including price volatility, elevated energy costs, high inflation, higher cost of
debt, etc. As a result the Group applied the Board of Governors of the Federal Reserve System’s formula to derive a
downturn LGD to be used for 2024 and 2023. The Group considers credit risk to have increased significantly when the
customer has failed to honour a repayment arrangement. Change in the loss allowance is largely driven by the repayment of
the Forward Africa Mining loan and the issuance of the loan to the Limberg Mining Company. The Group holds collateral over
the ChromTech Mining Company (Pty) Ltd property, who is the holding company to Limberg Mining (Pty) Ltd. The collateral
held will sufficiently cover the outstanding balance of the loan.
No significant increase in credit risk related to other financial assets were identified and therefore the ECLs were measured
at a 12-month ECL applying the general approach.
Cash and cash equivalents
The Group held cash and cash equivalents of $97,844,572 at 30 June 2024. The cash and cash equivalents are held with
banks rated with Moody’s at Ba2, B1 and Baa3 (refer table below).
2024
2023
$
$
Moody’s rating
Ba2
30,869,895
123,270,598
B1
41,975
43,179
Baa3
66,932,702
846,077
97,844,572
124,159,854
Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short
maturities of the exposures. The Group considers that its cash and cash equivalents have low credit risk based on the
external credit ratings of the banks. No impairment has been recognised for the year.
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100 A N N U A L R E P O R T 2 0 2 4
Notes to the consolidated financial
statements continued
27. Financial instruments continued
Liquidity risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an appropriate
liquidity risk management framework for the management of the Group’s short, medium- and long-term funding and
liquidity management requirements.
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted
payments based on the earliest date on which the Group can be required to pay. The table includes both interest and
principal cash flows.
Carrying
amount
Contractual
cash flows
Less than
1 year
1 – 5 years
Total
$
$
$
$
$
2024
Trade and other payables¹
13,063,054
13,063,054
13,063,054
–
13,063,054
Leases
928,242
1,116,078
543,896
572,182
1,116,078
13,991,296
14,179,132
13,606,950
572,182
14,179,132
2023
Trade and other payables¹
13,202,296
13,202,296
13,202,296
–
13,202,296
Leases
711,561
826,798
400,486
426,312
826,798
13,913,857
14,029,094
13,602,782
426,312
14,029,094
1 VAT amounting to $574,022 (2023: $320,388) are excluded from the trade and other payables balance as this analysis is required only for
financial instruments.
Commodity price risk
Commodity price risk refers to the risk of changes in fair value or cash flows of financial instruments as a result of changes
in commodity prices. It is applicable to the largest debtor of the Group. In terms of the agreement between the Group
and the debtor, the commodity prices used in the calculation of the payment are based on the prices over the period
following delivery, leaving the Group exposed to the commodity price fluctuations until the price is fixed. The subsequent
re-measurement of the receivable every month following the month of delivery until the price is fixed, is recognised in
other sales (refer note 9).
Sensitivity analysis
Commodity price risk sensitivity analysis presents the effect of a 10% change in the year-end commodity price on financial
instruments in the statement of financial position, statement of comprehensive income and therefore equity.
Statement of financial
position
2024
2023
$
$
Financial assets
Trade receivables still subject to price fluctuation
20,148,379
24,999,154
Effect of 10% commodity price fluctuation
≈2,014,837
≈2,499,915
28. Leases
A. The Group as a lessee
The Group has a commercial lease agreement whereby it leases its current office premises, in Johannesburg. This lease has
an average life of three years with no renewal option. Lease payments are escalated at 9% per annum.
The Group leases various items of office equipment. Office equipment with a value of $5,000 or less are regarded as low
value. The Group has elected not to recognise right-of-use assets and lease liabilities for low-value assets. The cost relating
to the leases are included in operating costs.
Containers are leased for office space on two of the operational plants. These leases are for a period of two to four years.
Refer note 14.
Information about leases where the Group is a lessee is presented below:
2024
2023
$
$
Right-of-use assets
Right-of-use assets related to leased properties that do not meet the definition of
investment property are presented as property, plant and equipment.
Property
Balance at 1 July
147,363
69,905
Additions
495,343
194,268
Disposals
(82,777)
–
Depreciation charge for the year
(75,324)
(101,943)
Exchange rate difference
14,971
(14,867)
Balance at 30 June
499,576
147,363
Office equipment
Balance at 1 July
30,619
10,983
Additions
10,267
30,557
Depreciation charge for the year
(19,213)
(8,106)
Exchange rate difference
1,607
(2,815)
Balance at 30 June
23,280
30,619
Plant
Balance at 1 July
502,202
17,887
Additions
178,073
793,344
Disposals
(112)
Depreciation charge for the year
(322,774)
(275,413)
Exchange rate difference
15,109
(33,616)
Balance at 30 June
372,498
502,202
B. The Group as lessor
The Group leases out certain portions of the property owned by Zoetveld Properties (Pty) Ltd to a third party exclusively
for the grazing of livestock. This original lease expired on the 30th of April 2020 and is continuing for an indefinite period
subject to termination by either party on a six months’ notice to the other party. Lease payments escalate at 9% per annum.
The Group has classified this lease as an operating lease, because it does not transfer substantially all of the risks and
rewards incidental to the ownership of the asset.
Rental income recognised by the Group during 2024 was, $56,398 (2023: $49,081).
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102 A N N U A L R E P O R T 2 0 2 4
Notes to the consolidated financial
statements continued
29. Key management disclosure
Shareholding of key management personal
The number of shares in the Company held during the year by each Director of the Group is set out below:
Balance
at the start
of the year
Issued/
purchased
during the
year
Balance
at the end
of the year
2024
SA Murray*
1,050,000
(1,050,000)
–
JJ Prinsloo
1,463,144
77,000
1,540,144
L Carminati
1,326,831
71,500
1,398,331
E Carr
70,000
60,000
130,000
AJ Reynolds
20,000
30,000
50,000
S Scott
20,000
–
20,000
2023
SA Murray*
1,050,000
–
1,050,000
JJ Prinsloo
1,372,394
90,750
1,463,144
L Carminati
1,244,331
82,500
1,326,831
E Carr
70,000
–
70,000
AJ Reynolds
20,000
–
20,000
S Scott
20,000
–
20,000
* SA Murray stepped down as Chair of the Group in December 2023.
All equity transactions with key management personnel other than those arising under the bonus shares granted have
been entered into under terms and conditions no more favourable than those the Group would have adopted if dealing
at arm’s length.
29. Key management disclosure continued
Shareholding of key management personal continued
Short-term benefits
Share-based
payment²
Director
Cash salary/
consulting
fees
Bonus¹
Directors’
fees
Equity
shares/
bonus
shares
Total
$
$
$
$
$
2024
SA Murray*
–
–
62,500
–
62,500
JJ Prinsloo
302,544
132,299
75,000
49,184
559,027
L Carminati
271,114
93,150
75,000
40,801
480,065
E Carr
–
–
117,500
–
117,500
AJ Reynolds
–
–
81,250
–
81,250
S Scott
–
–
80,000
–
80,000
Sub-total
573,658
225,449
491,250
89,985
1,380,342
Other key
management
1,743,273
310,074
209,483
2,262,830
Total
2,316,931
535,523
491,250
299,469
3,643,172
2023
SA Murray
–
–
125,000
–
125,000
JJ Prinsloo
295,269
33,792
75,000
75,812
479,873
L Carminati
264,595
30,708
75,000
63,292
433,595
E Carr
–
–
85,000
–
85,000
AJ Reynolds
–
–
80,000
–
80,000
S Scott
–
–
75,000
–
75,000
Sub-total
559,864
64,500
515,000
139,104
1,278,468
Other key
management
1,748,070
209,289
–
284,352
2,241,711
Total
2,307,934
273,789
515,000
423,456
3,520,179
1 Cash bonuses were awarded to directors and key personnel based on individual performance.
2 Share-based payments on bonus shares granted – refer to note 26.
* SA Murray stepped down as Chair of the Group in December 2023.
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104 A N N U A L R E P O R T 2 0 2 4
Notes to the consolidated financial
statements continued
30. Related party transactions
The consolidated financial statements include the financial statements of Sylvania Platinum Limited, a Bermudan registered
company and the controlled entities listed in the following table:
Equity holding
Name of entity
Countr y of
incorporation
Class of
shares
2024
2023
%
%
Aralon Holdings Limited
Mauritius
Ordinary
100
100
Sylvania (Mauritius) Limited
Mauritius
Ordinary
100
100
Sylvania South Africa (Pty) Ltd
South Africa
Ordinary
100
100
Sylvania Metals (Pty) Ltd
South Africa
Ordinary
100
100
Sylvania Properties (Pty) Ltd
South Africa
Ordinary
100
100
Sylvania Mining (Pty) Ltd
South Africa
Ordinary
100
100
Sylvania Northern Platinum (Pty) Ltd
South Africa
Ordinary
74
74
Sylvania Northern Mining (Pty) Ltd
South Africa
Ordinary
74
74
Sylvania Resources (Pty) Ltd
South Africa
Ordinary
100
100
Sylvania Exploration (Pty) Ltd
South Africa
Ordinary
100
100
Hacra Mining and Exploration
Company (Pty) Ltd
South Africa
Ordinary
67
67
Pan Palladium South Africa (Pty) Ltd
South Africa
Ordinary
100
100
Volspruit Mining Company (Pty) Ltd
South Africa
Ordinary
74
74
Zoetveld Properties (Pty) Ltd
South Africa
Ordinary
100
100
PT Sands (Pty) Ltd
South Africa
Ordinary
100
100
Iolite Trading 16 (Pty) Ltd
South Africa
Ordinary
38.6
38.6
Sylvania Platinum Limited is the ultimate holding company of the Group. Transactions between Sylvania Platinum Limited
and its controlled entities during the year consisted of loan advances between Group companies. All intergroup transactions
and balances are eliminated on consolidation.
Non-controlling interest
The non-controlling interests are all held by black economic empowerment participants.
Investments in joint operation
The Group’s interest in TS Consortium, which conducts research and development on technologies to create a chromite ore
pellet suitable for ferrochrome smelters in South Africa, is 75% in the joint operation’s assets and liabilities. Both parties
are required to unanimously make decisions and neither party has power nor control over the other.
In relation to its interest in TS Consortium, the financial statements of the Group include:
• Assets, including its share of any assets held jointly;
• Liabilities, including its share of any liabilities incurred jointly;
• Revenue from the prospective sale of the output by the joint operation;
• Share of the prospective revenue from the sale of the output by the joint operation; and
• Expenses, including its share of any expenses incurred jointly.
Terms and conditions of loan to joint operation
The loan to TS Consortium is unsecured, bears interest at 7% and is repayable on demand.
Loans to related parties – TS Consortium
2024
2023
$
$
Balance outstanding at 30 June
Loan to joint operation (TS Consortium)
345,328
317
30. Related party transactions continued
Terms and conditions of loans with Forward Africa Mining
Mr Sipho Ntuli is a Director of both Forward Africa Mining (Pty) Ltd and Sylvania Metals (Pty) Ltd and is deemed to be person
with significant influence over both entities.
The terms and conditions of the loans are more fully described in note 15, Other Financial Assets.
Loans to related parties – Forward Africa Mining (Pty) Ltd
2024
2023
$
$
Balance outstanding at 30 June
Loan to Forward Africa Mining (Pty) Ltd
–
6,751,498
31. Joint operations
The Company has a 50% interest in the Thaba JV, an unincorporated JV between the Company’s wholly owned South African
subsidiary, Sylvania Metals (Pty) Ltd and Limberg Mining Company (Pty) Ltd, a subsidiary of ChromTech Mining Company
(Pty) Ltd. The agreement entered into is to recover chromite and PGM concentrates from run-of-mine ores and historical
tailings deposited on the Tailings Storage Facility (TSF) at the Limberg Chrome Mine, in which the parties will share equally.
The plant Is currently in construction, with first production expected in the second half of FY2025.
Below is the summary financial information representing 100% of the Thaba JV financial performance and position.
100%
Group
50%
Note
reference
Statement of comprehensive income
Other expenses
73,040
36,520
10
Net operating profit/loss
73,040
36,520
Statement of financial position
Non-current assets
201,083
100,542
14
Current assets
662,117
331,059
16 and 17
Total assets
863,200
431,600
Total equity
(75,091)
(37,546)
19
Current liabilities
938,291
469,146
23
Total equity and liabilities
863,200
431,600
Included above in JV:
Cash and cash equivalents
662,117
331,059
32. Events after the reporting date
The directors are not aware of any further matters or circumstances arising since the end of the reporting period, not
otherwise dealt with in the financial statements, which significantly affects the financial position of the Group or the results
of its operations.
33. Going concern
The Group’s financial risk management objectives and policies are detailed in note 27 and available borrowing facilities are
set out in note 16.
The Group has sufficient cash reserves and resources to continue to meet its obligations even in the event if operations
were to be placed under care and maintenance for 12 months. Considering the strong financial position, operational
performance, budgets and forecasts as well as the timing of cash flows and sensitivity analyses, the directors are satisfied
that the Company and the Group have adequate resources to continue in operational existence for at least 12 months
from date of signing the financial statements.
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Additional information for listed public
companies
108
Glossary of terms
109
Corporate directory
IBC
05
S HA RE HO LDER
I N FO RMAT ION
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S Y L V A N I A P L A T I N U M L I M I T E D
108 A N N U A L R E P O R T 2 0 2 4
Glossary of terms
Additional information for listed public companies
Shareholders’ profile as at 30 June 2024
Shareholders’ holding 3% or more fully paid shares:
Shareholder
Number
of shares
%
Shareholding¹
Hargreaves Lansdown, stockbrokers (EO)
39,898,400
15.24
Interactive Investor (EO)
34,401,075
13.14
Africa Asia Capital
27,250,000
10.41
AJ Bell, stockbrokers (EO)
14,855,770
5.68
Premier Miton Investors
14,397,380
5.50
BlackRock
11,248,996
4.30
HSDL, stockbrokers (EO)
10,313,580
3.94
Barclays Smart Investor (EO)
8,840,274
3.38
Interactive Brokers (EO)
7,990,118
3.05
Total
169,195,593
64.64
1 The percentage shareholdings are calculated on the total number of ordinary shares with voting rights being 261,601,514 shares. The total issued
number of shares is 273,366,725 including 11,765,211 shares held in treasury.
The following definitions apply throughout the period
3E PGMs
3E ounces include the precious metal elements Platinum, Palladium and Gold
4E PGMs
4E PGM ounces include the precious metal elements Platinum, Palladium, Rhodium and Gold
6E PGMs
6E ounces include the 4E elements plus additional Iridium and Ruthenium
AGM
Annual General Meeting
AIM
Alternative Investment Market of the London Stock Exchange
All-in cost
All-in sustaining cost plus non-sustaining and expansion capital expenditure
All-in sustaining cost
Production costs plus all costs relating to sustaining current production and sustaining capital
expenditure.
Attributable
Resources or portion of investment belonging to the Company
BIC
Bushveld Igneous Complex
CGU
Cash-generating unit
CODM
Chief operating decision maker
DMRE
Department of Mineral Resources and Energy
EAD
Exposure at default
EAP
Employee assistance programme
EBITDA
Earnings before interest, tax, depreciation and amortisation
ECL
Expected credit loss
EDEP
Employee Dividend Entitlement Plan
EIA
Environmental Impact Assessment
EIR
Effective interest rate
EPS
Earnings per share
ESG
Environment, social and governance
FAM
Forward Africa Mining
FVTPL
Fair value through profit or loss
GBP
Pounds Sterling
GBV
Gender-based violence
GHG
Greenhouse gases
GISTM
Global Industry Standard on Tailings Management
GRI
Global Reporting Initiative
HDP
Historically disadvantaged persons
IASB
International Accounting Standards Board
ICMM
International Council on Mining and Metals
IFRS
International Financial Reporting Standards
ISA
International Standards on Auditing
JORC
Joint ore reserves committee
JV
Joint venture
KPI
Key performance indicator
Lesedi
Phoenix Platinum Mining (Pty) Ltd, renamed Sylvania Lesedi
S Y L V A N I A P L A T I N U M L I M I T E D
110 A N N U A L R E P O R T 2 0 2 4
Glossary of terms continued
LGD
Loss given default
LSE
London Stock Exchange
LTI
Lost-time injury
LTIFR
Lost-time injury frequency rate
MF2
Milling and flotation technology
NPV
Net present value
PD
Probability of default
PDMR
Person displaying management responsibility
PGM
Platinum group metals comprising mainly platinum, palladium, rhodium and gold
Project Echo
Secondary PGM Milling and Flotation (MF2) programme announced in FY2017 to design and
install additional new fine grinding mills and flotation circuits at Millsell, Doornbosch,
Tweefontein, Mooinooi and Lesedi
QCA
Quoted Companies Alliance
Revenue (by-products)
Revenue earned on Ruthenium, Iridium, Nickel and Copper
RNS
Regulatory News Services
ROM
Run of mine
SASB
Sustainability Accounting Standards Board
SDO
Sylvania Dump Operations
Silly Season
The ‘Silly Season’ campaign is historically where a high number of accidents at mines are reported
during the last quarter of the calendar year. This period is often challenging from a health and
safety perspective and is commonly known as ‘Silly Season/Critical Season’
SLP
Social and Labour Plan
Sylvania
Sylvania Platinum Limited, a company incorporated in Bermuda
Sylvania Metals
Sylvania Metals (Pty) Ltd
TCFD
Task Force on Climate-related Financial Disclosures
tCO2e
Tons of carbon dioxide equivalent
Thaba JV
Thaba Joint Venture
TRIFR
Total recordable injury frequency rate
TSF
Tailings storage facility
UNSDGs
United Nations Sustainability Development Goals
USD
United States Dollar
UK
United Kingdom of Great Britain and Northern Ireland
VAT
Value added tax
WULA
Water Use Licence Application
ZAR
South African Rand
Zero harm
The South African mining industry is committed to the shared aspiration of achieving the goal of
zero harm, which aims to ensure that mineworkers return home from work healthy and
unharmed every day
O VERVIE W
S T RAT EG IC LE AD E R S H IP
C OR P OR AT E G O V ER N A N C E
F I N A N C I A L STA TEM EN TS
SHAREHOLDER INFORMATION
Corporate directory
Directors
SA Murray (Resigned from the Board on 31 December 2023)
AJ Reynolds
E Carr
SJ Scott
JJ Prinsloo
L Carminati
Company Secretary
Conyers Corporate Services (Bermuda) Limited
Principal registered office
Clarendon House
2 Church Street
Hamilton HM11
Bermuda
South African operations
Constantia Office Park
Ground Floor, Cycad House
Cnr 14th Avenue & Hendrik Potgieter Road
Weltevredenpark
1709
South Africa
Telephone: +27 (0)11 673 1171
Facsimile: +27 (0) 11 673 0365
Share registry
Computershare Services Plc
The Pavilions
Bridgewater Road
Bedminister Down
Bristol BS99 7NH
United Kingdom
Auditor
PricewaterhouseCoopers Inc
4 Lisbon Lane
Waterfall City
Jukskei View
Midrand
2090
South Africa
Solicitors
Conyers Dill & Pearman Limited
Clarendon House
2 Church Street
Hamilton HM11
Bermuda
Gowling WLB
4 More London Riverside
London SE1 2AU
United Kingdom
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