Aim-listed Sylvania Platinum says its operational performance in the quarter ended December 31, 2020, continued to stabilise from previous quarters as the operations teams had embraced a “new normal” of production incorporating Covid-19 protocols.

The Sylvania Dump Operations (SDO) produced 18 363 oz of platinum, palladium, rhodium and gold (4E) platinum group metals (PGMs) in the quarter under review, compared with the 17 972 oz of 4E PGMs produced in the quarter ended September 30.

The SDO posted a net profit of $20.3-million in the quarter under review, compared with a net profit of $20.1-million in the preceding quarter.

The SDO comprises six chrome beneficiation and PGM processing plants, located on both the eastern and western limbs of the Bushveld Igneous Complex, in South Africa's Limpopo province.

CEO Jaco Prinsloo says the performance during the quarter under review, the second quarter of its financial year, was in line with the company’s internal plan and that the SDO is on track to produce 70 000 oz of 4E PGMs by the financial year-end.

Moreover, Prinsloo explains that the company’s western operations experienced significant power disruptions in the quarter under review relating to vandalism of Eskom substations and electrical cable theft in the area.

The company was evaluating the outcomes of a power mitigation study to determine possible measures to reduce any impact in future.

This while ongoing circuit optimisation at Sylvania’s new Lannex mill and spiral upgrade was progressing well, and would improve processing efficiencies and profitability, based on current feed sources.

The company’s Mooinooi chrome proprietary processing modifications and process optimisation projects remain on track for commissioning during the third quarter of the company’s financial year.

Sylvania continues to remain debt free and maintains strong cash reserves to allow for funding of capital expansion and process optimisation projects.

The company had a cash balance of $67.1-million at the end of the quarter under review after payment of dividends, royalties and income tax.

The company had paid $5.9-million in dividends in the six months ended December 31, 2020.

Prinsloo concludes that the company benefited from stronger PGM basket prices in recent months and that the company will, in February, decide on whether to pay out a windfall dividend.