London-listed Sylvania has successfully ramped up to full capacity at its Sylvania Dump Operations (SDO), following a hard lockdown and subsequent ramping up process in South Africa, in the quarter ended June 30.

The company only produced 9 055 oz of platinum, palladium, rhodium and gold (4E) platinum group metals (PGMs), compared with the nearly 20 000 oz of 4E produced in the quarter ended March 31. 

This brought the total production for the 2020 financial year to 69 026 oz of 4E.

SDO comprises six chrome beneficiation and PGM processing plants, located on the eastern and western limbs of the Bushveld Igneous Complex. SDO has an annual production capacity of between 75 000 oz and 78 000 oz at steady state. 

Despite the drop in ounces produced in the fourth quarter of the company’s financial year, it still generated positive earnings before interest, taxes, depreciation and amortisation of $4.2-million.

Net profit was down to $2.2-million, compared with net profit of $25.3-million in the quarter ended March 31.

CEO Jaco Prinsloo comments that there is no denying that the unprecedented nature and circumstances under which the operations performed during the past quarter is one to go down not only in the history of the company, but in industries worldwide. 

“The South African government imposed lockdown and the consequential placing of plants on care and maintenance until the hard lockdown ended, inevitably had a significant impact on both production and costs. 

“However, the company is in the robust position of having sufficient cash reserves to mitigate against the rise in costs and the possible reduction in future cash inflows due to the ongoing situation.“

Meanwhile, the company’s Mooinooi chrome proprietary processing modifications and optimisation project is on track to be commissioned early in the 2021 calendar year, which will improve PGM feed grades and ounces.

The new Lannex mill and spiral upgrade, after being delayed slightly owing to Covid-19, is currently being commissioned and expected to be in full operation by mid-August.

The project will enable the plant to improve processing efficiencies and profitability.

Sylvania also initiated an optimisation project at its Lesedi plant, which forms part of the Western Operations of SDO, to build a new secondary milling and flotation module, which will further improve the recovery of PGMs. This will be commissioned towards the end of June next year.

Prinsloo concludes that, with the company’s management and employees working together, maintaining Sylvania’s production standards and embracing this “new normal”, he is confident that Sylvania will continue to safeguard both the health and safety of its employees, as well as the operational and financial health of the group during this challenging time.