JOHANNESBURG (miningweekly.com) – Lower platinum group metals (PGM) feed tons related to several plant interruptions and lower PGM plant feed grades have dented Sylvania Platinum’s production for the quarter ended March 31 by 13%, narrowing output from the company’s production and development operations in the Bushveld region of South Africa to 12 778 oz for the three months.
This brought the year-to-date (YTD) production total to 44 119 oz and kept the company on track to achieve – and possibly exceed – its yearly production target of 53 000 oz.
The reduced production was primarily owing to a structural failure on the Lannex plant’s thickener, which resulted in production downtime during the quarter, as well as the combination of a five-day Section 54 safety stoppage at the host mine by the Department of Mineral Resources, which affected the production at the Mooinooi and Millsell plants.
Community unrest related to municipal service delivery at the Eastern operations further impacted on production at the Steelpoort, Lannex, Doornbosch and Tweefontein operations.
Although production for the quarter was lower than the previous quarter and the quarterly performance during the same period last year, YTD production was 15% higher than that produced in the comparable period of the previous year.
The cash cost of production increased 3.6% compared with the same period in the previous year to $641/oz, largely owing to lower production volumes.
Group cash costs, which included corporate general and administration costs, were up 4% quarter-on-quarter, from $691/oz to $716/oz, largely as a result of lower ounce production.
“We have had a quarter impacted by a number of operational issues, but are pleased to report that group net cash increased by 13% to $8.8-million, despite the production issues, which drove higher cash costs than in the prior quarter.
“However, fourth-quarter profitability is likely to be impacted by the continuing low metal prices,” CEO Terry McConnachie said in a results statement.
The gross basket price of $833/oz dropped about 6.7% compared with the previous quarter’s $893/oz as a result of the drop in the commodity price.
Combined with lower ounce production for the quarter, this resulted in a revenue drop of 19%, from $12.98-million last quarter to $10.5-million in the period under review.