Aim-listed Sylvania achieved record production of 21 789 oz of platinum, palladium, rhodium and gold (4E) platinum group metals (PGM) for the fourth quarter ended June 30, taking full-year output to a record 72 090 oz.

CEO Terry McConnachie on Wednesday said that significant operational improvements had been achieved during the fourth quarter.

The company concluded the financial year with cash of $21.8-million following the payment of $5.3-million in tax during the quarter, as well as the secondary milling and flotation (MF2) capital spend.

It maintained a good cash holding, which would enable it to continue to internally fund any further capital expenditure, said McConnachie.

He added that the company was also beginning to see the results from the MF2 and capital project roll-out and that these were expected to be sustainable in the coming financial years.

“Due to the four-month payment agreement with our off-taker, this quarter's solid performance will contribute to an increase in our cash on hand during full-year 2020, which, combined with the decreased production costs, means we are in a strong financial position moving forward.”

During the period, Sylvania Dump Operation PGM plant recoveries improved to 54%, boosting ounce production.

Net revenue increased by 10% to $20.2-million, while earnings before interest, taxes, depreciation and amortisation (Ebitda) improved by 14% to $9.3-million in the quarter.

Group cash costs decreased by 21% to $496/oz.

The third MF2 module of Project Echo was commissioned at Mooinooi in the quarter. Commissioning of the Lesedi chrome section began during the quarter.

CHALLENGES

Although minimal disruptions were experienced during the period, power supply infrastructure constraints and water availability at certain operations remained focus areas.

Sylvania indicated that management continued to explore alternatives to minimise disruptions and mitigate the impact of these constraints on its operations.

Meanwhile, Sylvania has developed an optimised re-mining strategy, using a hybrid mechanical-hydro mining approach, which is being rolled out to enable more efficient blending, grade control and feed stability.

The optimisation of recently commissioned projects at Mooinooi and Lesedi are expected to contribute towards improved process efficiencies.