Aim-listed Sylvania’s Sylvania Dump Operations (SDO) produced 17 972 oz of platinum, palladium, rhodium and gold (4E) platinum-group metals (PGMs) for the quarter ended September 30 − the first quarter of Sylvania's 2021 financial year.
This was higher than the 9 055 oz of 4E PGMs produced in the quarter ended June 30 but lower than the 20 797 oz produced in the first quarter of the 2020 financial year.
"After a steady return to full capacity production following the outbreak of Covid-19 and the [South African] government-imposed industry shutdown, I am pleased to report that the SDO produced . . . a solid performance given the challenges we faced during the period.
"While all the plants are now running at full capacity after the ramp-up of operations post lockdown and plant efficiencies have normalised, the reduced mining operations of certain host mines continued to impact on feed grades as expected and consequently [the quarter's] production decreased approximately 14% on the corresponding quarter of the 2020 financial year," CEO Jaco Prinsloo points out.
The SDO recorded $41.5-million in net revenue for the quarter under review, compared with revenue of $13.2-million in the preceding quarter and $31.2-million in the first quarter of the 2020 financial year.
Group cash costs decreased to $652/oz, compared with $983/oz in the preceding quarter and $573/oz in the first quarter of the 2020 financial year.
Prinsloo says the company continues to enjoy the benefits of a strong PGMs price environment, with a 31% quarter-on-quarter increase in the gross basket price having assisted in boosting Sylvania's cash reserves.
"The company remains in a robust financial position with sufficient cash reserves to fund capital projects which will help mitigate any rise in costs and the possible reduction in future cash inflows due to the ongoing uncertainty relating to Covid-19," he adds.
The company recorded a net profit of $21-million, owing to the increased production, while its earnings before interest, taxes, depreciation and amortisation were $29.7-million.
Sylvania says it expects to reach its production guidance of 70 000 oz of PGMs for the full 2021 financial year.
Meanwhile, Sylvania reports that the new Lannex mill and spiral upgrade project to improve processing efficiencies and profitability are ongoing.
The design of the Lesedi secondary milling and flotation module is also advancing, while the Mooinooi chrome proprietary processing modifications and optimisation project is in execution phase and expected to be commissioned during the third quarter of the 2021 financial year.