Sylvania Platinum : 2020 Annual Report

ANNUAL REPORT

2020

CONTENTS

01

SYLVANIA SNAPSHOT

Report profile

IFC

Corporate profile 1

02

STRATEGIC LEADERSHIP

03

GOVERNANCE

04

FINANCIAL STATEMENTS

05

ANCILLARY INFORMATION

Chairman's letter 4

CEO's review 11

Sustainability 18

Directors' report 22

Corporate governance statement 31

Directors' responsibilities in the

preparation of the financial statements 33

Independent auditor's report 34

Consolidated statement of profit or

loss and other comprehensive income 38

Consolidated statement of

financial position 39

Consolidated statement of changes

in equity 40

Consolidated statement of cash flows 41

Notes to the consolidated

financial statements 42

Additional information for listed public

companies 86

Glossary of terms 87

Corporate directory

IBC

REPORT PROFILE

This 2020 annual report presents a review of the operational and financial performance of Sylvania Platinum Limited (Sylvania) or (the Company) for the 12 months ended 30 June 2020. The report seeks to illustrate the company's business model through the application of the capitals in the process of creating value.

The consolidated financial statements, set out on pages 34 to 85, were approved on 8 September 2020. 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 US Dollars, unless otherwise stated. The Company is quoted on AIM, and in accordance with the AIM Rules for Companies (the AIM Rules), has chosen to adopt the Quoted Companies Alliance (QCA) Corporate Governance 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 corporate governance statement may be found on page 31 of this report.

CORPORATE PROFILE

Sylvania Platinum Limited is a producer of platinum group metals (PGMs) including platinum, palladium and rhodium. The Company's core business is the retreatment of PGM bearing chrome tailings material. The Company holds mining rights for a number of

PGM projects on the Northern Limb of the Bushveld Igneous Complex.

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 balance minimal operational and financial risk with the potential for high margins;

• • ensuring that the management teams are always well resourced with the right combination of skills;

• • focus on cash generation during uncertain economic times; and

• • continuously applying appropriate practices/technology to maintain the Company as a lower quartile producer.

The Company's focus is on cash generation and it will return capital to shareholders according to its dividend policy.

The Board has also recommended the payment of a dividend of 1.60 pence per share (~2.00 US cents), payable on 4 December 2020 after the Annual General Meeting (AGM) to be held on

27 November 2020.

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 incurred in United States Dollars (USD) and then converted into ZAR.

The Group's reporting currency is USD as the holding company is incorporated in Bermuda. Corporate and general and administration costs are incurred in USD, Pounds Sterling (GBP) and ZAR.

LOCATION OF OPERATIONS AND PROJECTS

LOCALITY WITHIN SOUTH AFRICA

RUSTENBURG LAYERED SUITE

Granites and allied rocks

Upper zone

Main zone

Critical, lower and marginal zones

Merensky reef

UG2 Chromitite layerPlatreef

Main roads

Main river SLP Sylvania

SDO Sylvania Dump Operations

Younger cover rocks

Younger alkaline intrusions and carbonatities

LEGEND

Operating Sylvania complexes

• 1 Millsell (SDO)

Mooinooi - Dump and ROM (SDO)

Lesedi (SDO)

Acquired: Nov '17 Previously Phoenix Platinum

4 5 6

Doornbosch (SDO)

Lannex (SDO)

Tweefontein (SDO)

Decommissioned operations

7 Steelpoort (SDO)

Mineral projects

• A Volspruit

• B Grasvally

  Decommissioned: Jun '17

• C Northern Limb projects

• D Everest North

Impaired during FY2013

CAPITAL INPUTS

HUMAN CAPITALNATURAL CAPITALMANUFACTURED CAPITALSOCIAL CAPITALFINANCIAL CAPITAL

BUSINESS MODEL

VALUES

Employee safety, human rights, honesty and integrity, environmental custodianship, respect for indigenous cultures and communities

STRATEGY

safe and innovative processing techniques

focus on PGMs and exploiting value-adding associate minerals and evaluating potential surface resourcesoptimising value from existing resources and infrastructuremaximising value by evaluating disposals, JVs, spin-offs

VISION and MISSION

To be the leading mid-tier lower unit cost PGMs producing company, generating wealth for all our stakeholders

OUTPUTS AND OUTCOMES

570 employees

R257.7 million spent on salaries and wages

227 upskilling learnerships

Community internship programme introduced

Water consumption > 2.4%

Recovery of seepage water

Doornbosch power consumption reducedPGM production of 69,026 ounces

Lower grade feed material

Focus on consistent recoveriesCommunity projects received R1.4 million Commercial opportunities being identifiedTaxes and royalties absorb R233.0 million

Providers of capital receive $2.86 million

DISCLAIMER

To the best knowledge and belief of Sylvania Platinum and its Directors (having taken all reasonable care to ensure that such is the case), the information contained in this document is in accordance with the facts and does not omit anything likely to affect the import of such information, prepared in accordance with applicable law and regulations.

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