JOHANNESBURG (miningweekly.com) – Aim-listed Sylvania Platinum has continued its operational improvements into the new financial year despite a series of challenges that negatively impacted on operations during the first quarter of the 2016 financial year.
A 2% rise in platinum group metal (PGM) ounce production and lower unit costs during the three months to September resulted in a 135% surge in earnings before interest, taxes, depreciation and amortisation (Ebitda) from $530 000 in the preceding quarter to $1.25-million in the quarter under review.
Ebitda from the Sylvania Dump Operations (SDO), on the western limb of the Bushveld Complex, showed a 29% quarter-on-quarter improvement to $1.49-million.
The low-cost PGM processor and developer saw first-quarter output from its SDO rising to 13 729 oz, compared with 13 468 oz in the fourth quarter of the prior financial year, owing to a slight improvement in recoveries, despite the lower PGM plant feed grades and lower tons treated.
Improved maintenance planning and cost controls resulted in the SDO’s cash cost decreasing quarter-on-quarter by 17% to $638/oz and 11% in rand terms to R6 900/oz – despite declining PGM basket prices, Sylvania CEO Terry McConnachie said.
The gross basket price plunged 15% quarter-on-quarter to $879/oz, while the platinum price dropped to a six-year low of $908/oz, which, in turn, resulted in a 12% drop in revenue to $8.8-million after smelting and penalty costs.
Plant availability and tons treated during the quarter were negatively impacted by a two-week community protest at the company’s Eastern operation, exacerbated by an electrical substation fire and subsequent one-week downtime at the Mooinooi operation during August.