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Environment|Exploration|Financial|flotation|Mining|Platinum|PROJECT|Projects|Safety|Technology|Water|Operations
environment|exploration|financial|flotation|mining|platinum|project|projects|safety|technology|water|operations

Sylvania achieves full-year production target

6th September 2021

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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Aim-listed Sylvania Platinum recorded a strong performance for the financial year ended June 30, CEO Jaco Prinsloo said on September 6, noting that the Sylvania Dump Operations (SDO) had achieved its production target of 70 043 oz of four-element (4E) platinum group metals (PGMs).

"With all operations back to normalised capacity and efficiencies during the year, the implementation of our process optimisation initiatives such as Project Echo modules and improved fines classification technology further contributed to the solid results throughout the period and enabled us to meet our stated production target for the year.

“However, as expected, the reduced mining operations of certain host mines has continued to impact on feed grades,” Prinsloo said.

He noted that the company continues to explore further opportunities to improve both feed grades and recovery efficiencies across operations that could add value in the near term. It is also engaging with various consultants to evaluate the potential of its existing longer-term mineral asset projects.

"The company continues to benefit from the strong PGMs price environment, which, combined with a strong operational performance, will continue to generate extremely healthy profits,” Prinsloo said.

Therefore, Sylvania was able to pay a windfall dividend of 3.75p per ordinary share in April, and has declared a yearly cash dividend of 4p per ordinary share for the period under review, which is a 150% increase on the dividend for the previous year.

Prinsloo commented that, should PGM prices remain favourable, the possibility of another windfall dividend for this calendar year would be evaluated during February 2022.

“We remain in a robust financial position, with sufficient cash reserves to finance capital projects, fund future growth and enable us to mitigate any potential adverse impacts due to the ongoing uncertainty relating to Covid-19,’’ he added.

For the period, net revenue increased by 79% to $206.1-million from the previous year; and adjusted group earnings before interest, taxes, depreciation and amortisation increased by 108% to $144.9-million.

Group net profit increased by 143% to $99.8-million.

Basic earnings a share increased by 151% to $0.37.

Sylvania ended the financial year with a positive group cash balance of $106.1-million, with no debt and no pipeline financing.

OPPORTUNITIES

The Lesedi secondary milling and flotation (MF2) project is noted as progressing well and on track to start contributing towards production from early in the second half of the 2022 financial year.

The development of the Tweefontein MF2 project has started, with commissioning scheduled for the first half of the 2023 financial year.

Additional chrome tails current arisings from an existing Eastern Limb third-party chrome operation have been secured during the period, with the potential to add about 2 000 oz/y to 3 000 oz/y of PGMs output.

Sylvania said it continues to maintain strong cash reserves to allow funding of capital expansion and process optimisation projects; the safeguarding of employees during these times of uncertainty; upgrading the group's exploration and evaluation assets; and returning value to all stakeholders.

Further, research and development efforts have identified potential that would enable the company to retreat low-PGM-grade tailings at selected sites that would otherwise be sterilised, thereby extending the operational life of these operations.

Post-period end, operations have been temporarily suspended at Lesedi as a precautionary safety measure owing to inadequate water drainage and increasing phreatic water levels at the tailings dam.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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