Aim-listed Sylvania achieved “strong” results for its first financial quarter, ended September 30, in line with expectations.
The Sylvania Dump Operations (SDO) produced 19 194 oz of platinum, palladium, rhodium and gold (4E) platinum group metals (PGMs) – the company’s best quarterly production since the Covid-lockdowns in early 2020, CEO Jaco Prinsloo says.
This increase in production ounces and the 2% higher PGMs basket price realised in the quarter resulted in stronger profits.
The SDO recorded $42.9-million in net revenue for the quarter.
Group earnings before interest, taxes, depreciation and amortisation was $26.4-million, with the benefit of increased production and the higher basket price realised in the quarter.
There was also an improved performance at the Lesedi operation with the MF2 plant fully commissioned and optimisation of the fine grinding MF2 unit and flotation circuit underway.
An updated mineral resource estimate (MRE) and scoping study on the Volspruit North Body was produced during the quarter and based on those reports the company has taken the decision to progress to a prefeasibility study during the year.
An MRE is complete for the La Pucella study area and a concept-level mining study, using the mineral resource, will be completed later in quarter two to provide the preliminary economic assessment for the project area.
OUTLOOK
The Tweefontein MF2 is scheduled to begin commissioning in the second quarter and is expected to start contributing to additional ounces from the third quarter.
The Lannex MF2 project is under construction and scheduled for commissioning towards the end of the fourth quarter of the company’s financial year.
Run-of-mine PGMs feed grade from the host mine at Mooinooi is being managed to ensure a consistent grade is maintained, with focus on continued improvement of recoveries through stability and blending opportunities.
Focus remains on operational cost controls, which are all noted to have been managed well during the quarter, and reagent optimisation continues at all SDO operations to explore improved efficiencies.
The group says it maintains strong cash reserves to allow funding of capital expansion and process optimisation projects, upgrading its exploration and evaluation assets and to return value to shareholders.