Sylvania Platinum Limited – Fourth Quarter Report

Sylvania Platinum Limited – Fourth Quarter Report

The Directors are pleased to present the results for the quarter ended 30 June 2019 ("Q4" or the "quarter").  Unless otherwise stated, the consolidated financial information contained in this report is presented in USD.


  • Record ounce production of 21,789 4E PGM ounces in Q4, to achieve a record of 72,090 ounces for FY2019;
  • SDO PGM plant recoveries improved 12% to 54%, boosting ounce production;
  • Net revenue increased 10% to $20.2 million;
  • Group EBITDA improved 14% to $9.3 million in Q4;
  • Group cash costs decreased 21% to $496/ounce;
  • Third MF2 module of Project Echo commissioned at Mooinooi in Q4;
  • Commissioning of Lesedi chrome section commenced in Q4; and
  • Significant safety milestones achieved at Lesedi, reaching eight years Lost Time Injury (LTI) free, and Tweefontein and Doornbosch operations both reaching seven years LTI-free during the quarter.


  • Although minimal disruptions were experienced during Q4, power supply infrastructure constraints and water availability at certain operations remain focus areas and management continue to explore alternatives to minimise disruptions and mitigate impact on operations; and
  •  Fluctuations in the average gross basket price and exchange rates impact the earnings and profitability of the Group and are continually monitored even though they remain outside of the Company's control.


  • An optimised re-mining strategy, utilising a hybrid mechanical-hydro mining approach, has been developed and is being rolled-out in order to enable more efficient blending, grade control and feed stability; and
  • Optimisation of recently commissioned projects at Mooinooi and Lesedi to contribute towards improved process efficiencies.

Commenting on the Q4 results, Sylvania's CEO Terry McConnachie said:

"In April 2019 we set out to achieve a record target for Q4. I am pleased to report that the SDO did not only reach this quarterly production record, but also achieved the annual guidance revised at the Half Year, resulting in an annual Company production record of 72,090 ounces for the financial year ending 30 June 2019. 

Following a challenging start to the year, there was significant operational improvement during the quarter and I would like to thank the operations teams and management for their continued dedication and hard work. 

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 MF2 capital spend and maintains a good cash holding which will enable us to continue to internally fund any further capital expenditure.   We are also beginning to see the results from the MF2 and capital project roll-out and these are 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 FY2020 which, combined with the decreased production costs, means we are in a strong financial position moving forward. I am optimistic about what the next quarter and new financial year will bring for the Company and Shareholders."

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