Aim-listed Sylvania’s Dump Operations (SDO) produced 15 840 oz of platinum, palladium, rhodium and gold (4E) platinum group metals (PGMs) in the third quarter to March 31.
SDO recorded $47.9-million net revenue for the quarter, enhanced by strong PGM basket prices.
Group earnings before interest, taxes, depreciation and amortisation was $30-million and the company recorded a net profit of $21.2-million.
Sylvania reports that PGM feed grades in the run-of-mine (RoM) material remained at a lower level at the Mooinooi operation during the quarter.
However, an investigation of potential solutions was undertaken in conjunction with the host mine, which has proven positive.
Preferred ore sources have been identified which have resulted in improved RoM feed grades post quarter-end.
This is expected to improve PGM grades and, therefore, production in the coming months.
Production costs at the SDO were negatively impacted on by an increase in the cost of reagents, increased fuel and transport costs and the lower ounce production quarter-on-quarter.
OPPORTUNITIES
The new Lesedi tailings storage facility (TSF) has been completed and commissioning of the tailings deposition facility began in February.
Cold commissioning of the new Lesedi MF2 project began in March and circuit optimisation is in progress. First slurry was treated post period-end.
The Tweefontein MF2 remains on track for commissioning in the first half of the 2023 financial year.
Production is expected to increase significantly during the next quarter owing to progress at Lesedi and the improvements identified post quarter-end at Mooinooi.
The group maintains strong cash reserves to fund capital expansion and process optimisation projects, upgrading the group’s exploration and evaluation assets and returning value to all stakeholders.
“I am expecting a strong operational performance from all operations during the final quarter of full-year 2022 based on initial positive results at Mooinooi to improve RoM feed grades in collaboration with our host mine, and at Lesedi, where production is expected to increase significantly during the next quarter as feed is stabilised and the MF2 circuit optimised,” CEO Jaco Prinsloo says.
He adds that this should enable the group to achieve the targeted production of 66 000 oz to 68 000 oz.