Sylvania Platinum CEO Terry McConnachie remains confident that Sylvania will achieve its revised production guidance of between 73 000 oz and 76 000 oz for the full 2019 financial year.
The company’s Sylvania Dump Operations (SDO) had achieved only a marginal increase in production to 34 045 oz of platinum, palladium, rhodium and gold (4E) during the six months ended December 31, 2018.
Revenue generated for the six-month period amounted to $32.1-million, a 14% improvement on the six months ended December 31, 2017.
Earnings before interest, taxes, depreciation and amortisation (Ebitda), meanwhile, increased by 19% to $12.3-million from $10.3-million in the prior comparable period.
Its net profit, meanwhile, increased by 29% to $6.95-million.
Platinum group metals (PGMs) grade and recovery optimisation capital projects were commissioned at the Millsell, Doornbosch and Tweefontein operations, the PGMs producer said in a statement on Monday.
A maiden dividend of 0.35p per ordinary share was paid.
The six-month period under review was not without its challenges, the producer said, some of which included power utility infrastructure and supply issues, as well as “abnormal summer heat and drought conditions” having resulted in water shortages.
The tailings dump currently being re-mined at Doornbosch is approaching its end of life, which is resulting in an inconsistent grade and mining downtime.
Additionally, Sylvania saw a lower percentage of fresh current arisings feed received from the host mines at both Tweefontein and Millsell related to underground incidents external to its operations during the second quarter.
Meanwhile, Project Echo’s MF2 module for Mooinooi has been fast-tracked to mitigate the impact of the delay to the Tweefontein MF2 module owing to power availability, and has been scheduled for commissioning in the second half of the 2019 financial year.
Other opportunities for Sylvania include the relocation of the redundant Steelpoort chrome circuit to Lesedi, which is in progress and will improve chrome removal ahead of flotion and enable a higher PGM feed.
Improved PGM fines classification circuits were commissioned at the Millsell, Doornbosch and Tweefontein operations during the past quarter and will contribute towards the PGM ounce profile during the second half of the 2019 financial year.