JOHANNESBURG (miningweekly.com) – Low-cost platinum-group metals (PGMs) producer Sylvania Platinum has achieved record production of 60 643 oz in the year ended June 30 – the third consecutive year of achieving record production.
Output was also 5% higher than the 57 587 oz produced the year before.
"I congratulate our management team for the excellent production performance in excess of 60 000 ounces for the year. This is an all-time record and marks the third consecutive year of increased production as well as some 6% better than budget,” CEO Terry McConnachie said in a statement released on Tuesday.
The company had expected to produce 58 000 oz in the full year.
The Sylvania Dump Operations (SDO) delivered the higher-than-expected output despite a lower PGM feed grade and production interruptions as a result of an electrical substation fire at Mooinooi and community protests related to municipal service delivery near its Eastern Limb operations.
SDO revenue was, however, 17% lower year-on-year, at $39.5-million, primarily owing to the gross basket price dropping 21% from $1 072/oz in 2015 to $850/oz.
Nevertheless, SDO earnings before interest, taxes, depreciation and amortisation improved by 3% to $13-million, aided by significantly lower operating costs during the period.
Group cash costs of $470/oz were 27% lower year-on-year, while capital expenditure was down 56% year-on-year to $1.8-million, from $4.1-million the year before.
Sylvania’s net profit improved 120% year-on-year to $3.73-million for the year ended June 30.
Although the company’s cash had increased by 31% between the first and second halves of the 2016 financial year, its cash balance of $6.7-million as at June 30, was 20% lower than the $8.4-million balance as at June 30, 2015.
This was mainly as a result of a $2.7-million tax payment made at the end of June.