Sylvania Platinum exceeds full-year output forecast, boosting cash position

Over the year ending on 30 June, Sylvania Dump Operations achieved 70,869 ounces- a 17% increase from the previous record of 60,643 ounces achieved in 2016.

This translated into a 28% jump in revenues for the producer of platinum group metals, from $39.5m in 2016 to $50.5m with group profits at the EBITDA level rocketing 65% to $18.3m even as capital expenditures more than doubled to $4.67m.

Profit after income tax leapt from $3.73m to $8.87m, for a 139% rise in earnings per share to 3.06 US cents from 1.28 in 2016.

Group cash costs also dipped, to $453 per ounce versus $470 per ounce in 2016.

In terms of the outlook, Sylvania said it was guiding for a "similar production performance" in the 2018 financial year and that with the roll-out of Project Echo it expected to maintain annual production at approximately 70,000 ounces "for many years going forward".

The group's cash balance increased by $8.6m to $15.3m as cash from operations jumped from $1.9m to $12.1m.

For his part, ShoreCap's Yuen Low highlighted how the company had beat its own already upped guidance for up to 63,000 ounces and its "very healthy" balance sheet, which meant it was well-placed to fund the purchase of the Pan African's Phoenix tailings dump retreatment operation as announced in July 2017.

The company's shares were up 10.67% to 10.38p by 15:10 BST.