Sylvania posts quarterly platinum group metals production in line with expectations
(Kitco News) - South African platinum group metals (PGM) producer Sylvania (AIM: SLP) announced today that for the quarter ended 30 June 2021, the company produced 16,289 4E PGM ounces at its Sylvania Dump Operations (“SDO”) in South Africa.
The company said that this result, whilst a slight decrease compared to 17,420 ounces in March 2021 quarter, was in line with management’s projections for the quarter, enabling the company to deliver 70,043 PGM ounces for the financial year, being a little over its expected target.
Sylvania noted that revenue (4E) for the quarter decreased 20% from $55.3 million to $44.1 million as a result of both the moderately lower ounce production and the significant reduction in the realised basket price quarter-on-quarter. The gross basket price for the quarter decreased 11% from $4,576/ounce in Q3 to $4,059/ounce in Q4 due mainly to the 19% and 5% drop in rhodium and platinum prices received respectively.
SDO recorded $48.4 million net revenue for the quarter (Q3: $74.2 million). Group EBITDA was $28.7 million (Q3: $58.7 million) and net profit was $14.7 million (Q3: $41.3 million).
The company said it has experienced operational challenges due to lower PGM feed grades and recovery potential associated with significant increase in open cast RoM sources received during the quarter. The company added that this balance will be addressed with PGM recovery expected to remain in the 52% to 54% range during the next financial year.
Sylvania Platinum is a producer of platinum, palladium and rhodium, with operations located in South Africa. The company’s Sylvania Dump Operations (SDO) comprises six chrome beneficiation and PGM processing plants focusing on the retreatment of PGM-rich chrome tailings materials from mines in the Bushveld Igneous Complex. The SDO is the largest PGM producer from chrome tailings re-treatment in the industry.