Sylvania Platinum, a developer and producer of platinum group metals (PGMs), reports that despite the consequence of a substantially reduced PGMs basket price, its fiscal year 2023 revenue and net profit remained satisfactory.
The Sylvania Dump Operations (SDO) produced 38,405 oz of platinum, palladium, rhodium, and gold (4E) PGMs in the six months of December 31, 2023.
Production remained unchanged compared to the preceding six-month period.
Improved PGM recovery efficiencies and work-in-progress stock reductions, along with marginally higher PGM feed tonnes despite 9% lower PGM feed grades compared to the previous comparable period, were primarily responsible for the sustained production level.
It said successful optimisation and commissioning of the secondary milling and flotation (MF2) circuits at Tweefontein and Lannex in South Africa were credited with the enhanced PGMs recovery efficiency.
Since the company's implementation of the programme was initiated during the 2017 fiscal year, these two MF2 circuits were the final ones to be commissioned at the current SDO operations.
Lower grade PGMs feed from dump feed sources to Lannex, Mooinooi, and Lesedi constituted the majority of the 9% decline in PGMs plant feed compared to the analogous period in the first half of the 2023 fiscal year.
The company maintained its production guidance of 74 000 oz to 75 000 oz of 4E for the full 2024 financial year.
“Additionally, the SDO is well positioned within the industry due to a stable production base, improving PGM recovery efficiencies and low operating costs – with the company placed in the lowest quartile of the industry cost curve,” said Sylvania chief executive Jaco Prinsloo.
“Sylvania’s low-cost strategy has ensured that the SDO remain cash generative even at lower basket prices. Enabled by our cash-generating operations and disciplined operating cost and capital control, the company has sufficient cash reserves to continue to fund capital and optimisation projects, as well as advancing our exploration projects and returning value to shareholders.”
Meanwhile, SDO cash costs rose by 13% from $602 per ounce (oz) to $682/oz.
Increasing reagent and consumable costs associated with additional MF2 circuits, as well as transport and purchase expenses related to higher-grade third-party feed material, were the primary contributors, surpassing even the inflation-rate increase in electricity rates from the national power utility.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
