29th Apr 2019 13:52
LONDON (Alliance News) - Sylvania Platinum Ltd on Monday reported growth in quarterly earnings, driven by higher output and prices.
Production for Sylvania's third quarter ended March was 16,526 ounces of 4E platinum group metals, 9% higher quarter-on-quarter.
On a 6E basis, platinum group metal production was 11% higher on the quarter at 22,224 ounces.
Revenue rose 28% to USD15.7 million for the quarter, while Sylvania registered a 55% rise in earnings before interest, tax, depreciation, and amortisation to USD8.2 million.
Sylvania's gross basket price for the quarter rose 23% quarter-on-quarter to USD1,383 per ounce, while its cash balance has risen 17% over the three months to reach USD23.7 million.
Problems with the water supply at its Lesedi mine in South Africa have improved, but there were still intermittent shortages, Sylvania said, which hampered production. Further, unplanned downtime was caused by power outages and loadshedding.
Chief Executive Terry McConnachie said: "I am pleased to report after a challenging second quarter, the Sylvania dump operations performed significantly better and delivered 16,256 ounces in the third quarter.
"With the increase in production and gross basket price, as well as the decrease in cash costs, the company has once again generated positive cash flows enabling us to continue to internally fund our Project Echo and expansion projects and still grow our cash in the bank."
"We are forecasting around 21,800 ounces for the fourth quarter, up marginally on the fourth quarter of 2018, provided there are no unforeseen disruptions," he continued.
"We are revising our production guidance to 72,000 ounces for financial 2019, which would mean record production being attained in the fourth quarter. With Mooinooi MF2 now added, grade improvement at Doornbosch and more consistent production at Lesedi, this should be achievable."
Shares were 4.1% higher on Monday afternoon at a price of 33.30 pence each.
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