Sylvania Platinum production slips as expected in third quarter

South Africa-focussed Sylvania Platinum reported in an update on Wednesday that its Sylvania Dump Operations (SDO) produced 18,232 4E platinum group metal (PGM) ounces in its second quarter.

The AIM-traded firm said that was in line with its guidance, although slightly lower than the prior quarter's output of 20,173 4E PGM ounces.

Despite that, SDO recorded $20.9m in net revenue for the period, an increase from $19.7m in the previous quarter.

The company noted absence of any lost-time injuries (LTIs) during the quarter.

Its EBITDA for the period stood at $4.4m - a notable improvement from the $2.8m recorded in the first quarter of the 2024 financial year.

Shareholders received a final cash dividend for 2023 of 5p per share, totaling $16.7m, paid out in December.

On the development front, Sylvania noted the commissioning of the Lannex MF2 flotation circuit, reporting that its optimisation was ongoing.

The company said it expected improved recoveries with the commissioning of the Lannex fine grinding circuit.

Additionally, progress was on track for the Thaba joint venture project, with construction of the earthworks and civil works package starting in December.

Looking ahead, Sylvania said the optimisation of the Lannex fine grinding circuit was expected in the third quarter.

It said it was also focused on continuous operational performance improvements, including feed sources, throughput, recoveries, and cost-saving initiatives.

Furthermore, an updated mineral resource estimate statement for the combined Volspruit north and south ore bodies was nearing completion, with final documents expected to be signed off in the third quarter.

Sylvania said it had initiated a preliminary economic assessment for the Volspruit project, with SRK Consulting appointed for the task.

Once the combined PEA for the North and South ore bodies was complete, the company said it expected to start a preliminary feasibility study.

The group said it maintained strong cash reserves, enabling it to fund expansion, joint venture initiatives, process optimization capital, and the upgrade of exploration and evaluation assets.

“We have again achieved excellent safety, health and environmental performance for the quarter,” said chief executive officer Jaco Prinsloo.

“Our sustained focus on employee well-being and sustainable practices, has ensured that all operations achieved an all-injury free quarter and the SDO remains LTI-free for the quarter and year to date.

“Production for the quarter was in line with the production target for the period.”

Prinsloo said the 10% fall in production was primarily due to lower current arising feed tonnages and feed grades from some of the host mines due to the festive season closure.

“However, the second-quarter production was supported by higher recovery efficiencies over the period.

“Despite these challenges, we remain on course to meet the full-year production guidance.”

At 1228 GMT, shares in Sylvania Platinum were down 4.58% at 57.15p.

Reporting by Josh White for Sharecast.com.