Sylvania Platinum (SLP:AIM)
Results from its PGM, Sylvania Dump Operations (“SDO”) in the Bushveld region of South Africa, for the quarter ended 31 December 2016 (Q2).
The company produced a record 18,562 oz for the quarter, an 8% increase on the previous quarter of 17,257 oz. H1 production was 35,819 oz. The outlook for the remainder of the year is expected to exceed the previously stated guidance of 60,000 oz. Revised guidance will be announced in the half year report to be published February 2017. Higher PGM feed tons and grades contributed to to the improvement in production, which was slightly offset by lower PGM recovery efficiency.
Revenue declined 11% to US$11.6m as a result of the drop in basket price, a negative price adjustment for Q1 and slightly higher penalties. The Group cash balance at 31 December 2016 was US$12.7 million. Cash costs for the SDO were down 3% from the previous quarter to US$417/oz. Capital expenditure increased 209% primarily due to the roll-out of Project ECHO, which will lead to improved PGM recovery efficiencies, lower PGM production unit costs, increased cash generation and enable SDO to extend its operating life and sustain its production profile at 55k-60k oz.
Sylvania’s CEO Terry McConnachie said: “All seven of the Sylvania’s chrome and platinum plants are producing at steady state and the Board is pleased to see that the initiatives implemented last year, including changing from Mechanical mining to Hydro mining, improving the engineering preventative maintenance schedules and concentrating on reducing penalties, are yielding positive results.”