26th Apr 2016 10:09
LONDON (Alliance News) - Sylvania Platinum Ltd said Tuesday it expects annual ounce production to be ahead of previous guidance, after production came in slightly lower than the previous quarter, but the feed grade and recovery efficiency rose.
The platinum group metal processor and developer saw production of 14,905 ounces for the quarter ended March 31, 17% ahead of 12,778 ounces it reported for the same quarter a year earlier.
This was below the 15,791 ounces Sylvania reported for the previous quarter to December 31. However, the company said higher feed grades and recovery efficiencies contributed towards the good ounce production for the quarter.
Based on the year to date performance and recent production trends, Sylvania said full year production is now expected ahead of previous estimates, in the range of 57,000 ounces to 58,000 ounces.
Sylvania had previously guided to 55,000 ounces.
Earnings before interest, tax, depreciation and amortisation for the quarter was USD3.7 million, up from USD2.3 million in the previous quarter, as revenue rose 4.0% to USD10.1 million from USD9.7 million, the company said.
Gross basket price also recovered from the previous quarter, and came in at USD860 per ounce, up from USD785 per ounce in the previous quarter.
"I stated last quarter that cost control and achieving production targets will allow Sylvania to prosper when the decline in metal prices is reversed and we are seeing the fruits of our labour now," Chief Executive Terry McConnachie said.
"We were thankfully offered a bit of a reprieve this quarter by the 10% increase in the gross basket price and, together with the solid ounce production, this translated into the revenue increase of 4.0% and 16% in US dollar and Rand terms respectively. It's rewarding to see the cash balance grow despite poor prices, even though we continue to spend modestly on new dump investigations and the purchase of shares in the market when the opportunity arises," McConnachie added.
Shares in Sylvania were up 1.1% at 6.70 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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