Aim-listed Sylvania Platinum achieved record production of 20 278 oz of platinum, palladium, rhodium and gold (4E) platinum group metals (PGMs) in the fourth quarter, ended June 30.

This resulted in production of 71 026 oz of 4E for the financial year.

This is despite the continual drop in the platinum price, which resulted in the PGMs producer’s basket price remaining under pressure, with an average of $1 176/oz for the fourth quarter, despite the stronger rhodium price.

The gross basket price for PGMs for the quarter was $1 167/oz, a 2% improvement on the third quarter's $1 141/oz.

Total operating costs increased by 10% to R140-million, compared with R127-million in the third quarter, mainly owing to the higher production.

However, Sylvania pointed out that the higher ounces resulted in a decrease of 5% in Sylvania Dump Operations (SDO) cash costs in rand terms from R7 355/oz to R6 996/oz and a 10% decrease per ounce in dollar terms to $553/oz.

The all-in sustaining cost for the group decreased by 15% against the third quarter to R6 953/oz owing to lower production costs per ounce and the lower capital spend in the fourth quarter.

The producer further achieved a 39% quarter-on-quarter increase in revenue to $20-million, while group earnings before interest, taxes, depreciation and amortisation was $8.6-million and group profit $3.9-million for the fourth quarter.

“Our operations and management teams have faced considerable challenges during the period, the large majority of them outside of the company's control. They have risen to the challenge, shown great resilience and, to return record production figures, while ensuring that our staff's safety remains our key priority, is highly commendable,” Sylvania CEO Terry McConnachie commented.

PRODUCTION

Further, after the record monthly production achieved during March 2018, the SDO continued to build on the strong performance and delivered new consecutive production records of about 6 650 oz and 7 400 oz for May and June 2018 respectively.

This performance generated a new record quarterly production figure of 20 278 oz for the group.

While plant feed grade was marginally lower compared with the previous quarter, a 14% increase in plant feed tons, and improved chrome yields, enabled higher PGM upgrade ratios and feed grades to the flotation. Together with a 7% improvement in recovery efficiencies, this contributed to the higher PGM ounce production, the producer said on Tuesday.

The higher plant feed tons resulted from improved plant utilisation and stability at Millsell, Mooinooi, Doornbosch and Tweefontein, with the latter achieving higher PGM feed grades and recovery efficiencies.

Feed grades and recovery efficiencies were slightly lower at the Lesedi operations during the quarter.

Following the commissioning of the first modules of Project Echo at Millsell and Doornbosch earlier in the year, the PGM recovery efficiencies at both operations improved significantly, contributing to an overall recovery improvement of 7% for the group.