Sylvania Platinum : Annual Results Announcement

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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse regulation (EU) no.596/2014 as amended by the Market Abuse (Amendment) (EU Exit) Regulations 2019.

7 September 2023

Sylvania Platinum Limited ("Sylvania", the "Company" or the "Group")

Final Results to 30 June 2023

Sylvania (AIM: SLP) the platinum group metals ("PGM") producer and developer, with assets in South Africa, is pleased to announce its final results for the year ended 30 June 2023. Unless otherwise stated, the consolidated financial information contained in this report is presented in United States Dollars ("USD").

Operational Highlights

• Sylvania Dump Operations ("SDO") exceeded target production by delivering 75,469 4E PGM ounces for the year (FY2022: 67,053 4E PGM ounces);
• Run of Mine ("ROM") grades received from the host mine at Mooinooi increased significantly over the year contributing to additional ounce production;
• Successful commissioning of Tweefontein MF2 improved metal recoveries;
• Optimisation of blending improved grade, recovery and ounce production, especially at the Eastern operations; and
• Pilot-scalework on pelletizer project completed; the Company is currently engaging with potential industry partners to assess the commercial viability of the technology.

Financial Highlights

• Net revenue generated for the period totalled $130.2 million (FY2022: $152.0 million);
• Group EBITDA of $66.0 million (FY2022: $82.8 million);
• Net profit of $45.4 million (FY2022: $56.2 million);
• New Dividend Policy approved by the Board and effective from 1 July 2022;
• Interim dividend of three pence per Ordinary Share declared by the Board and paid in April 2023;
• Final cash dividend of five pence per Ordinary Share declared by the Board, maintaining an annual eight pence per Ordinary Share dividend for FY2023 (FY2022: eight pence per Ordinary Share);
• Group cash balance of $124.2 million (excluding $0.8 million restricted cash held as guarantees) with no debt and no pipeline financing; and
• Bought back a total of 4.8 million Ordinary Shares during the year at an average price of 81.5 pence per share, equating to $4.9 million in aggregate.

ESG Highlights

• Doornbosch achieved 11-yearsLost-Time Injury ("LTI") free in June 2023;
• New initiatives relating to improved water management undertaken at the Company's operations during the period and a Dynamic Water Balance developed for each plant;
• 24 local community members took part in this year's training and development programme, 11 of whom are women;
• Support for three ongoing internships and eight internal learnerships, plus 12 external bursaries maintained, and Community Based Employee Training provided to 10 employees; and

• No occupational illnesses were recorded in FY2023.

Outlook

• Re-miningof Dam 6A at the Mooinooi Plant has commenced with the focus on optimising the blend to ensure the planned grade profile is achieved;
• Continuous operational performance improvements relating to the optimisation of feed sources, throughput, recoveries, and cost saving initiatives planned;
• The updated Mineral Resource Estimate ("MRE") at Volspruit is expected to be completed during Q1 FY2024, and the Preliminary Economic Assessment ("PEA") for the entire project is expected during Q3 FY2024;
• The Group maintains strong cash reserves to allow funding of expansion and process optimisation capital, and upgrading of the Group's exploration and evaluation assets with the potential to return value to shareholders;
• The commissioning of the Lannex MF2 flotation circuit to commence in Q1 FY2024, which will further improve PGM recovery efficiencies; and
• Annual production target of 74,000 to 75,000 4E PGM ounces for FY2024.

Post Period End

• On 14 July 2023, the Company announced that 3,624,275 Ordinary Shares held in Treasury had been cancelled; and
• On 9 August 2023, the Company announced that its wholly owned South African subsidiary, Sylvania Metals (Pty) Limited ("Sylvania Metals"), entered into an unincorporated Joint Venture Agreement ("JV") with Limberg Mining Company (Pty) Limited ("LMC"), a subsidiary of ChromTech Mining Company (Pty) Limited
  ("ChromTech"), the Thaba Joint Venture ("Thaba JV").

Share Buyback

• The Company will reinstate the Share Buyback programme initiated in May 2023 and will purchase on market
  Ordinary US$0.01 Shares ("Ordinary Shares") of the Company's issued share capital up to a maximum of $6.4 million. This is the balance of the $10.0 million originally allocated to the Share Buyback.

Commenting on the results, Sylvania's CEO Jaco Prinsloo said:

"I am pleased with another strong production performance by the SDO in delivering 75,469 4E PGM ounces for the period, exceeding our original forecast production. This performance, once again, emphasises our teams' impeccable work ethic, a big thank you to all of you. Keep up the great work!

"The performance was achieved as a result of several factors including the Tweefontein MF2 circuit optimisation following commissioning in Q2 FY2023 which continues to contribute to improved recoveries. The Lesedi MF2 plant was fully commissioned with optimisation of the fine grinding and flotation circuit resulting in improved performance, which, together with improved feed stability and flotation performance at Mooinooi, has contributed towards the overall improved recovery performance. Focus has remained on increasing runtime and improving operational stability and has contributed to improved efficiencies at all sites.

"With regards to safety, our Doornbosch plant achieved 11-yearsLTI-free in June 2023, which is a major milestone for the operation and is testament to Sylvania's high safety standards. Regrettably, during FY2023, there were two LTIs recorded, an ankle and a knee sprain. Fortunately, both employees recovered well. We have increased our efforts to instil a safety-first mindset by launching the 'Make It Personal' safety campaign during H2 FY2023, designed to improve and maintain personal safety across all our operations.

"Commodity prices remained a challenge with declines of around 28% in the average basket price received for the period. This negatively impacted our overall financial results for the year; however, we remain optimistic about price improvements.

"Rising input costs are a reality for the Group, and for the broader sector, therefore we continue to sustain a pragmatic cash management policy with disciplined capital allocation and control, as well as production cost control. This approach has ensured that the Company has the necessary cash reserves to cover working capital for the pipeline period, finance capital projects, fund growth and exploration, and mitigate any potential future difficulties it may have to deal with.

Nonetheless, despite these challenges, I am pleased to report that the Board has declared a final cash dividend of five pence per Ordinary Share for FY2023, resulting in a combined annual dividend of eight pence for the financial year.

"The announcement of the Thaba JV with LMC post year-end represents a major step forward in Sylvania's growth strategy and is a significant step forward for Sylvania Metals in expanding our operations and leveraging the Group's expertise in the recovery of chrome and PGM concentrates. The Thaba JV combines the strengths and expertise of both companies in the mining and processing industry. Sylvania Metals has a proven record in the recovery, sale and distribution of PGMs, while LMC contributes ChromTech's extensive experience of chrome operations, with particular expertise in fine chrome beneficiation.

"I am enthusiastic about the year ahead and believe our operations will continue to deliver a strong production performance and, as a consequence, have set an annual production target of 74,000 to 75,000 4E PGM ounces for FY2024."

The Sylvania cash generating subsidiaries are incorporated in South Africa with the functional currency of these operations being South African Rand ("ZAR"). Revenues from the sale of PGMs are received in USD and then converted into ZAR. The Group's reporting currency is USD as the parent company is incorporated in Bermuda. Corporate and general and administration costs are incurred in USD, Pounds Sterling ("GBP") and ZAR.

For the 12 months under review, the average ZAR:USD exchange rate was ZAR17.75:$1 and the spot exchange rate

was ZAR18.89:$1.

Operational and Financial Summary

	Production														Unit		%		FY 2023			FY 2022
																Change
	Plant Feed												T		9%		2,615,994		2,393,355
	Feed Head Grade									g/t		-4%		1.89		1.96
	PGM Plant Feed Tons									T		12%		1,372,936		1,221,687
	PGM Plant Feed Grade									g/t		-5%		3.06		3.21
	PGM Plant Recovery									%		5%		55.86%		53.24%
	Total 4E PGMs												Oz		13%		75,469		67,053
	Total 6E PGMs												Oz		12%		95,965		85,659
				USD							Audited							ZAR
	FY 2022		FY 2023			%			Unit				Unit	%		FY 2023			FY 2022
				Change						Change
													Financials
2,890			2,086			-28%			$/oz		Average 4E Gross Basket Price1		R/oz		-16%		37,035		43,964
142,489			116,575			-18%			$'000			Revenue (4E)		R'000		-5%		2,069,339		2,167,753
12,368			13,312			8%			$'000		Revenue (by-products including		R'000		26%		236,295		188,154
								base metals)
-2,912			309			111%			$'000		Sales Adjustments		R'000		112%		5,491		-44,299
151,944			130,196			-14%			$'000			Net Revenue		R'000		0%		2,311,125		2,311,608
48,039			48,277			0%			$'000		Direct Operating costs		R'000		17%		856,920		730,842
17,426			13,492			-23%			$'000		Indirect Operating costs		R'000		-10%		239,477		265,115
2,860			2,790			-2%			$'000		General and Administrative costs		R'000		14%		49,523		43,510
82,768			65,964			-20%			$'000		Group EBITDA4		R'000		-7%		1,170,861		1,259,195
1,254			5,203			315%			$'000			Net Interest		R'000		384%		92,353		19,078
56,151			45,352			-19%			$'000			Net Profit4		R'000		-6%		804,998		854,252
16,405			14,491			-12%			$'000		Capital Expenditure		R'000		3%		257,215		249,579
121,282			124,160			2%			$'000			Cash Balance5		R'000		18%		2,345,382		1,986,185
													Ave R/$ rate		R/$		17%		17.75		15.21
													Spot R/$ rate		R/$		15%		18.89		16.38
												Unit Cost/Efficiencies
716			640			-11%			$/oz		SDO Cash Cost per 4E PGM oz3		R/oz		4%		11,355		10,899
561			503			-10%			$/oz		SDO Cash Cost per 6E PGM oz3		R/oz		5%		8,930		8,532
897			771			-14%			$/oz		Group Cash Cost Per 4E PGM oz3		R/oz		0%		13,685		13,643
702			606			-14%			$/oz		Group Cash Cost Per 6E PGM oz3		R/oz		1%		10,757		10,679
1,052			874			-17%			$/oz		All-in Sustaining Cost (4E)		R/oz		-3%		15,509		16,008
1,256			1,033			-18%			$/oz			All-in Cost (4E)		R/oz		-4%		18,345		19,109

1. The gross basket price in the table is the average gross basket for the year, used for revenue recognition of ounces delivered over FY2023, before penalties/smelting costs and applying the contractual payability.
2. Revenue (6E) for FY2023, before adjustments is $129.1 million (6E prill split is Pt 52%, Pd 17%, Rh 9%, Au 0.2%, Ru 17%, Ir 5%).
3. The cash costs include operating costs and exclude indirect cost for example royalty tax and EDEP payments.

4The net profit and Group EBITDA include the profit on the sale of Grasvally Chrome (Pty) Ltd of $1.3 million. 5An additional $823,144 restricted cash is held which serves as guarantees to Eskom and the DMRE.

A. OPERATIONAL OVERVIEW

Health, safety and environment

During the period under review, the operations continued to focus on health, safety and environmental compliance. The Group is proud to report that there were no significant health or environmental incidents reported during the year and that it remains fatality-free since inception in 2006.

The Doornbosch operation achieved 11 years LTI-free on 26 June 2023, which is a remarkable achievement by industry and global standards, and management are exceptionally proud of the Doornbosch team. Lannex achieved three years LTI-free during the period and Millsell and Tweefontein are now both LTI-free for more than a year. Regrettably, there was one LTI at the Mooinooi operation (an ankle sprain) and one LTI at the Lesedi operation (a knee sprain) during Q3 FY2023.

The Company continues to target zero harm to employees and every injury that is recorded is fully investigated and corrective measures are implemented to prevent any future reoccurrences. By working together with management and all our employees, we continuously strive to maintain high safety standards and a safe working environment at all operating sites, with each plant continuing to operate in accordance with legislated safety and occupational regulations pertaining to the industry. Moreover, we launched the 'Make It Personal' campaign, which is designed to improve and maintain personal safety on site. We believe that by making safety a personal matter that everyone is responsible for, it will become second nature for all. This will assist to ensure all workers make it home safely, every day, in line with Sylvania's goal of achieving zero harm.

Operational performance

The SDO surpassed the Company's original guidance for the financial year by delivering an annual production of 75,469 4E PGM ounces, which was 13% higher than the prior financial year.

PGM plant feed tons were 12% higher than the previous period owing primarily to the improvement of feed stability and running time at Lesedi, following the tailings related disruptions experienced during FY2022, and optimisation of feed stability and feed sources received from the host mines at the other operations. PGM feed grades decreased by 5% year-on-year, impacted by a lower grade feed source being mined at Lesedi, while recovery efficiencies increased by 5%. This significant recovery improvement was enabled by successful optimisation and commissioning of the Lesedi MF2 and Tweefontein MF2 circuits, respectively during the year, while Mooinooi also saw improved performance as flotation stability and ROM quality improved.

The SDO cash cost per 4E PGM ounce increased by 4% in ZAR (the functional currency) from ZAR10,899/ounce to ZAR11,355/ounce while the USD cash cost decreased 11% to $640/ounce against $716/ounce in the prior year, due to currency movements. The increase in local currency costs was again primarily driven by higher electricity costs and reagent price increases. The effects of rising inflation worldwide and international instability continues to directly impact the cost of reagents, fuel and transport, which all cause operating costs to increase.

Operational focus areas

Based on the success of the roll-out of our secondary milling and flotation programme, Lannex will be the last of our SDO plants where a MF2 circuit will be commissioned, and we expect to complete this by the end of Q1 FY2024. This will further improve PGM recovery efficiencies and enable optimisation of PGM concentrate quality.

PGM concentrate quality remains a focus area with the potential to improve smelter payability, as both concentrate grade and metal recoveries contribute positively towards the revenue stream of the Group. We are also evaluating a filtration plant to convert to dry filtered concentrate transport instead of the current slurry tankers, which would assist in reducing concentrate transport costs and remediate handling challenges at off-take smelters.

Unfortunately, the Company again experienced localised power supply constraints to operations during the year as a result of load curtailment by the national power utility, as well as vandalism and cable theft at its substations, which especially impacted on production performance at the Lesedi operation that experienced over 300 hours downtime during FY2023. Fortunately, no other operations were materially affected by load reduction. The procurement,