Sylvania lifts FY profit amid another year of record production

JOHANNESBURG (miningweekly.com) – Platinum group metals (PGMs) processor Sylvania Platinum has posted a net profit of $8.87-million for the year ended June 30, compared with a profit of $3.73-million in the 2016 financial year.

The company’s Sylvania Dump Operations (SDO) had achieved a fourth consecutive year of record production, at 70 869 oz, for the 2017 financial year – a 17% increase on the 60 643 oz produced in the 2016 financial year.

“We managed to improve on our previous company record and I am excited for future production, once Project Echo is complete, and the possible further expansion through the Phoenix acquisition,” commented Sylvania CEO Terry McConnachie.

Sylvania in July bought Phoenix Platinum from Pan African Resources for R89-million, a move that is expected to strengthen Sylvania’s position in tailings retreatment.

It is also investing about $12-million on Project Echo, which is aimed at improving PGM recovery efficiencies, lowering PGM production units costs, increasing cash generation and enabling SDO to extend its operating life and to sustain its production profile at about 70 000 oz/y going forward.

The project entails moving from single stream milling and flotation circuits at the Millsell, Doornbosch, Tweefontein, Mooinooi Dump and Mooinooi Run-of-Mine operations to primary and secondary milling and flotation (MF2) circuits over a two- to three-year period.

By June 30, Sylvania had already spent $2.2-million on the Millsell and Doornbosch MF2 modules.

“Based on current resources, plant infrastructure and operational performance, we should see similar production performance in the 2018 [financial year] and, with the roll-out of Project Echo, the company should be able to maintain production levels of around 70 000 oz of PGMs for many years,” said McConnachie.