Sylvania dump operations increases output by 19% in the fourth quarter

28th July 2022

By: Donna Slater

Features Deputy Editor and Chief Photographer


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Aim-listed platinum group metals (PGMs) miner Sylvania Platinum’s dump operations achieved a 19% year-on-year increase in production to 18 837 oz for the fourth quarter ended June 30.

This took full-year production to 67 053 oz.

CEO Jaco Prinsloo says the strong performance was achieved on the back of a solid production effort from all operations, especially the Tweefontein plant.

In the fourth quarter, Sylvania’s dump operations recorded a 37% quarter-on-quarter decrease in net revenue of $34.9-million as a result of a 22% lower PGMs basket price received in the period.

“The 22% lower PGMs basket price received during the quarter impacted both the [PGMs] revenue, as well as the sales adjustment for the quarter. Consequently, revenues and profits were lower, but still resulted in a strong cash position after the payment of the windfall dividend, taxes and share buybacks during the period,” Prinsloo says.

During the period, group earnings before interest, taxes, depreciation and amortisation totalled $16.8-million, down from $30-million in the third quarter.

Sylvania’s group cash balance at periods end was $121.3-million, after payment of the windfall dividend, share buyback and year-end taxes.

The Doornbosch operation achieved ten years without a lost-time injury.

The Tweefontein operation achieved record monthly, quarterly and full-year PGMs production performance.

In addition, Sylvania reports that the sale of Grasvally chrome mine became unconditional on July 8.

“On the cost front, Sylvania dump operations’ cash costs decreased 13% in rand and 15% in dollar terms, benefitting from the higher ounces produced, but operations are still navigating higher global cost inflation impacts and thus operating cost focus will remain a priority,” says Prinsloo.

However, despite PGMs feed grade of run-of-mine ore from the host mine at Mooinooi improving during the past quarter, the issue remains a focus area for Sylvania to ensure output ounce targets are achieved in the future.

The miner is also being negatively impacted on by high global inflation and uncertainty which is raising the cost of reagents, fuel and transport.

Nonetheless, Sylvania reports that its Tweefontein milling and flotation 2 (MF2) project is currently in execution and expected to contribute to production ounces from early in the 2023 calendar year.

The Lannex MF2 opportunity was assessed and a project was initiated during the past quarter to target commissioning of a new MF2 plant towards the end of the 2023 calendar year.

Going forward, the group maintains strong cash reserves to enable funding of capital expansion and process enhancement projects, upgrading Sylvania’s exploration and evaluation assets and to return value to shareholders.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online



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