: Sylvania achieves 17 257 oz production record, on course for 60 000 oz FY output

JOHANNESBURG (miningweekly.com) – Platinum group metals (PGMs) processor and developer Sylvania Platinum’s Sylvania Dump Operations (SDO) has delivered its highest ever production of 17 257 oz in the quarter ended September 30.

Announcing the company’s results, on Wednesday, CEO Terry McConnachie said the improved PGM recovery efficiencies for the quarter contributed to higher PGM production despite the PGM feed tons and grades being slightly lower than in the previous quarter. 

He remarked that, with the solid performance during the first quarter of the 2017 financial year, the company was confident of achieving the 60 000 oz guidance for the full year.
 
McConnachie explained that SDO’s cash costs in rand terms decreased by 5% from R6 070/oz to R5 745/oz, owing to a combination of higher PGM ounce production and disciplined operating cost control, but increased by 1% in dollar terms from $404/oz to $408/oz as a result of a stronger rand/dollar exchange rate.  

Further, he noted that the company’s revenue increased 15% in rand terms to R182.7-million from R158.7-million in the previous quarter and increased by 23% in dollar terms to $13-million from $10.6-million.

McConnachie attributed this to the higher production and an improved basket price. “The gross basket price increased 9% to $937/oz from $859/oz for the previous quarter,” he pointed out.
 
The group’s cash balance at September 30 was $11.1-million, a $4.4-million increase on the previous quarter’s $6.7-million. Cash generated from operations before working capital movements was $5.6-million with net changes in working capital amounting to a reduction of $1.4-million, $200 000 spent on stay-in-business capital for the SDO plants, $500 000 net inflow after the review of the underlying investment for the rehabilitation insurance guarantee and $500 000 spent on share buybacks and the impact of exchange rate fluctuations on cash held at the quarter end was $400 000.
  
“This was another sterling effort from our production teams. I am proud of our ability to, once again, set a quarterly production record. This is testament to commitment, work ethic and strong loyalty to the company. Our operating cash costs in rand terms are down again and the gross basket price is beginning to show signs of life and, as a result, we have seen a healthy increase in revenue,” McConnachie enthused.

EXPLORATION AND OPENCAST MINING PROJECTS
Meanwhile, following the submission of an appeal on June 3 against the decision by the Limpopo Department of Economic Development, Environment and Tourism (LEDET) not to grant an environmental authorisation (EA) for the Volspruit platinum exploration project, in Limpopo, Sylvania submitted an answering statement on August 12, in response to comments received from interested and affected parties.

The company is currently awaiting a decision by LEDET on whether to grant the EA for the project. “Any update will be reported as soon as one is received,” the company reported.
 
The Department of Mineral Resources has, meanwhile, granted an amendment to the existing prospecting right for the Grasvally chrome exploration project, in Limpopo, to include the processing of the old waste rock dumps.
 
The Department of Water and Sanitation visited the site and was provided with an update and status report of prospecting, the development plan and the risks associated with delaying the application.

The application is currently in its final stages and the company said it was hoped that the issuing of the water use license for processing the waste rock dumps would be issued soon. However, the company continues to await the outcome of its mining right application for Grasvally.
 
Additionally, the company also said it remained hopeful that a mining right for PGMs would be granted “shortly” for the Harriet's Wish, Aurora and Cracouw platinum exploration projects.