Aim-listed Sylvania Platinum’s Sylvania Dump Operations (SDO), in South Africa, has produced 19 160 oz of platinum, palladium, rhodium and gold (4E) platinum group metal (PGM) in the quarter ended September 30 – the first quarter of its 2025 financial year.
Production was 12% higher quarter-on-quarter.
CEO Jaco Prinsloo comments that, although the average 4E gross basket price decreased by 2% in dollar terms and 5% in rand terms, the increase in production ounces recorded during the quarter resulted in stronger profits compared with the previous quarter.
Sylvania has also reported that SDO recorded $21.9-million net revenue for the quarter and group earnings before interest, taxes, depreciation and amortisation (Ebitda) of $3.3-million.
The company achieved a cash balance, as at September 30, of $94.7-million.
“On the cost front, group cash unit costs improved 8% and 5% in rand and dollar terms respectively, assisted by higher PGM ounce production while direct costs remained aligned with the previous quarter in rand terms, benefiting from management’s continued focus on disciplined operational and cost control initiatives,” says Prinsloo.
The company says the production target of 73 000 oz to 76 000 oz of 4E PGM for the 2025 financial year remains unchanged.
Meanwhile, Prinsloo adds that both the build phase and the operational readiness planning for the Thaba joint venture (JV) is running according to plan, noting that the majority of the operational team will start with induction and training during November and cold commissioning is on track for the third quarter of financial year 2025.
Sylvania says the project is on schedule to begin first production in the second half of financial year 2025 with all phases of construction of the chrome and PGM beneficiation plants progressing well.
Additionally, the company notes that the competent person report for the Volspruit Scoping Study was finalised in August and indicates an increased pre-tax net present value (NPV) to $69-million for a 14-year life-of-mine.
Moreover, a geophysical survey proposed to cover the entire strike length of the Aurora project to assess both the continuity of the mineralization as well as to gain a greater understanding of the structural setting of the area will commence in the second quarter of the 2025 financial year, with results expected in the third quarter.
The company says the group maintains strong cash reserves, enabling it to balance the requirement of sustaining capital – new tailings storage facilities and strategic and improvement projects – expansion and process optimisation capital – new Thaba JV project and studies aimed at optimising value of the group's exploration assets – as well as potential shareholder returns.
A final dividend of one pence per ordinary share for financial year 2024 was declared, bringing the total dividend for the period to three pence per ordinary share, and the AGM will be held on November 29.
“Despite the continued macroeconomic challenges, I am pleased with the significantly improved production performance of the SDO and group results in general for the first quarter of financial year 2025.
“This is especially promising as we have been seeing a gradual improvement in the PGM basket price in recent weeks, which bodes well for potential increased profitability going forward. I would like to take this opportunity to thank and congratulate the various management teams on their outstanding efforts during the quarter,” says Prinsloo.
