30th Apr 2018 15:57
LONDON (Alliance News) - Sylvania Platinum Ltd on Monday said that higher operating costs and lower platinum group metals production led to a 59% quarter-on-quarter drop in net profit for the third quarter of 2018 financial year.
The miner recorded net profit of USD1.1 million for the three months to March-end, down from USD2.7 million in the second quarter. Revenue rose 3% to USD12.8 million, while operating costs rose 20% to USD10.6 million.
Platinum group metal production fell 3% quarter-on-quarter to 16,857 ounces.
"January 2018 was a particularly difficult month due to the impact of the delays with a license at our newly constructed Millsell tailings facility. When the permissions were eventually received to use the new tailings facility, nearly barren waste slime on top of the dump had to be processed first. All credit to our team for overcoming this problem towards the end of the third quarter. Once we migrated down into the higher grade feed the project rapidly started generating increased ounces, resulting in March being our highest ever ounce production month with 6,631 ounces. This record production will help make up ounces in the fourth quarter in order to meet the revised guidance of 71,000 to 75,000 ounces," Chief Executive Terry McConnachie said.
Shares in the company were flat at 16.00 pence in afternoon trade in London on Monday.
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