Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Aim-listed Sylvania Platinum fell back into the red during the financial year ended June 30, as impairments weighed on profitability.
The group, which had pulled itself back into profitability in the 2013 financial year, posted a net loss for the year under review of $5.1-million, compared with a $4.3-million net profit the year before.
Sylvania reported a basic loss a share of 1.7c in the 12 months ended June 2014 – a contraction on the basic earnings of 1.45c a share delivered in 2013.
The group impaired $1.59-million on its Everest North exploration and evaluation asset.
The viability of Everest North, a joint venture with Aquarius Platinum South Africa (AQPSA), depended on the operation of AQPSA's Everest South processing plant, which was placed on care and maintenance in June 2012.
No plans were in place to restart this operation.
A further $180 931 had been impaired on the expired prospecting right that was not renewed.
The group's 25% investment in the idled Chrome Tailings Retreatment Plant attracted a $1.29-million impairment, with no agreement between the parties or plans to restart the operation.
However, Sylvania reported an 18% hike in revenue to $47.2-million for the year under review.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 29% to $11.2-million for the Sylvania Dump Operations (SDO), while the group’s adjusted Ebitda increased 121% to $7.5-million.
Cash generated from operations was up 24% to $5.1-million; however, group cash decreased 20% year-on-year to $5.3-million.
SDO’s capital expenditure decreased 83% to $1.3-million.
SDO’s yearly production cash cost fell 6%, from $708/oz in 2013, to $665/oz in the year under review, while the group’s cash cost was $712/oz, marginally higher than the market guidance of $700/oz.