Sylvania posts record H1 production

JOHANNESBURG (miningweekly.com) – Aim-listed Sylvania Platinum achieved record platinum group metals (PGMs) production of 35 819 oz for the six months to December 31.

This resulted in the company posting earnings before interest, taxes, depreciation and amortisation (Ebitda) of $9.22-million for the six months, compared with $3.61-million for the six months to December 31, 2015.

Ebitda was also 28% higher than the $7.19-million recorded for the six months to June 30, 2016.

The operations performed exceptionally well during the six months under review, with Lannex, Mooinooi and Tweefontein achieving the best quarterly PGM ounce production figures in the history of the operations, to contribute toward the new half-year production record.

The company attributed the higher PGM ounces to higher recoveries, as a result of improved plant stability and flotation and mass pull optimisation at its plants, while the plant feed tons and feed grades were only marginally higher than both the previous period and the corresponding first six months of 2016.

Based on a solid year-to-date performance and the outlook for the remainder of the year, the company expects the Sylvania dump operations (SDO) to exceed previously stated guidance of 60 000 oz by 3 000 oz to 5 000 oz.

The company further reported that its SDO cash costs were down 14% to $405/oz for the six months under review, compared with $471/oz for the corresponding period in 2015, primarily as a result of a combination of higher PGM ounce production, lower operating costs and a higher rand/dollar exchange rate during the period.

Sylvania CEO Terry McConnachie noted that a consistent focus on the company’s strategic objectives of improving operational stability and ounce production, disciplined cost control, and good progress in executing project Echo delivered the robust results.

Project Echo is a secondary milling and flotation programme aimed at improving PGM recovery efficiencies, lowering PGM production unit costs, increasing cash generation and enabling the extension of the SDO’s profitable operating life.

“[This was] despite a backdrop of depressed commodity prices and challenging macro industry conditions. Group revenue increased 32% to $24.55-million while unit costs decreased 16% to $425/oz,” he added.

As at December 31, the company's cash and cash equivalents amounted to $12.68-million, while its cash balance increased by $5.98-million.