New Dividend Policy

RNS Number : 9682V

Sylvania Platinum Limited

21 January 2013

 



Sylvania Platinum Limited

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

(AIM: SLP)

New Dividend Policy

Sylvania Platinum is pleased to announce its new dividend policy,which has been agreed by the Board and will be applied from H2 2013 onwards.

Background

After 5 years of continuous capital investment, Sylvania now has seven long life chrome tailings processing complexes.  The Company currently has a positive cash balance, with longer dated projects on hold pending an improvement in PGM prices.  This reduced planned capital expenditure enables the Company to forecast healthy positive free cash flows.

Dividend policy

Subject to the resultant company cash balance following the payment of any dividend being greater than $8 million, the Board of the Company will recommend paying a minimum of 25% of the previous half year earnings as a cash dividend.  Dividends will be paid semi-annually with the first payment targeted for December 2013, and payments thereafter every June and December.

Terry McConnachie, Chief Executive Officer, commented: "Following feedback from our shareholders and in consideration of the Company's strong financial position and outlook, I am delighted to announce the new dividend policy.  This demonstrates our commitment to shareholder-friendly capital allocation and creating value for our investors. The Board has not lost sight of the longer term strategy to realise value from our development projects and will look forward to our Chairman elect Stuart Murray to lead this process."

The Company also announces that it has updated its corporate presentation, which is available for viewing on its website www.sylvaniaplatinum.com

CONTACT DETAILS

For further information please contact: 

Terence McConnachie (Chief Executive Officer) [phone]
Nominated Advisor and Broker Liberum Capital Limited Michael Rawlinson/Tom Fyson/Christopher Kololian [phone] Sylvania Website: www.sylvaniaplatinum.com	Communications Newgate Threadneedle Graham Herring/ Beth Harris [phone]

 

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