Sylvania Sets Annual Production Record of 71,026 Ounces

Sylvania Platinum (LSE:SLP) reached record production of 20,278 ounces of platinum, palladium, rhodium and gold (4E) platinum group metals (PGMs) in its fourth quarter, resulting in the production of 71,026 ounces of 4E for the financial year (FY), the company announced on Tuesday (July 31).

The company achieved the record Q4 results despite the plunge in the price of platinum. However, the price drop did effect Sylvania’s basket price, which averaged US$1,167 per ounce, despite the stronger rhodium price.

“I am pleased to present the Q4 figures with a record production of 20,278 4E ounces. Our operations and management teams have faced considerable challenges during the period, the large majority of them outside of the company’s control,” said Terry McConnachie, CEO.

“They have risen to the challenge, shown great resilience and to return record production figures, whilst ensuring that our staff’s safety remains our key priority, is highly commendable,” McConnachie added.

The company noted that the higher levels of production this quarter resulted in its total operating costs increasing by 4 percent to US$11,052, compared with US$10,587 in Q3.

Additionally, Sylvania’s all-in sustaining cost came in at US$550 per ounce —a 19 percent decrease compared to its third quarter results. The company also achieved a 39 percent quarter-on-quarter increase in revenue to US$20 million.

Meanwhile, group earnings before interest, taxes, depreciation and amortization was US$8.6-million and group profit reached US$3.9 million in Q4.

Following a strong Q3, Sylvania dump operations continued to build on the strong performance garnered production records of about 6,650 ounces and 7,400 ounces for May and June 2018 respectively.

The company also noted that despite plant feed grades being marginally lower compared with the previous quarter, a 14 percent increase in plant feed tons, as well as improved chrome yields, allowed for higher PGM upgrade ratios and feed grades to the flotation. Sylvania pointed out that combined with a 7 percent improvement in recovery efficiencies, this contributed to the higher PGM ounce production.

The higher plant feed tons resulted from improved plant utilization and stability at Millsell, Mooinooi, Doornbosch and Tweefontein, with the latter achieving higher PGM feed grades and recovery efficiencies.

As of 3:14 p.m. EST, Sylvania’s share price was up 1.74 percent, trading at US$0.30.

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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.