Cost-cutting boosts bottom-line at Sylvania Platinum

Platinum Group Metals (PGM) producer Sylvania Platinum posted improved profits on a before and after tax basis as cost-cutting took the sting out of a drop in the company´s rate of top-line growth.

Sylvania dump operations achieved a record production level for a third year in a row, of 60,643 ounces.

Despite that, full year sales fell 17% to $39.51m, yet the company´s net income jumped to $3.73mn, a 120% rise from the same period last year, as costs were slashed.

The company took an axe to its general and administrative costs, which came down by 31% to $2.3m.

In parallel, at $470/oz. group cash costs were well beneath the $700 management had guided towards.

Group capital and exploration outlays were also reduced, by 56% from $4.1m to $1.8m.

The limited company is engaged in investment in mineral exploration and mineral treatment projects, with the shares enjoying a market capitalisation of £21.57m.

CEO Terry McConnachie spoke of his pride in the annual results.

"I congratulate our management team for the excellent production performance in excess of 60,000 ounces for the year. This is an all-time record and marks the third consecutive year of increased production as well as some 6% better than budget," McConnachie said.

The executive also paid tribute to the safety record of his management team and wider work force during the year.

I am proud to report that the Company achieved one year LTI-free (lost-time-injuries) at all operations and did not receive any Section 54 stoppage notices from the Department of Mineral Resources during the year. This is an exceptional achievement," he added.

Analysts at ShoreCap were pleased by the outfit´s ability to reign in costs, while also highlighting how aash at period’s end was$6.7m, while current assets totalled $25.9m – versus "just" $6.3m of current liabilities.

Shares in Sylvania were down 4.8% in Tuesday trading at 7.38p.