2nd Sep 2019 12:11
(Alliance News) - Sylvania Platinum Ltd on Monday posted a rise in annual revenue and a sixth consecutive year of record production, despite water shortages at some of its plants due to extremely hot weather.
In the financial year ended June 30, revenue rose by 12% to USD70.5 million from USD62.8 million, with pretax profit rising 52% to USD24.4 million from USD16.1 million.
Sylvania met its annual guidance by producing a company record of 72,090 ounces of platinum group metals, up 1.5% year-on-year from 71,026. The company had predicted to produce 72,000 ounces in financial 2019.
Production was helped by its Millsell and Doornbosch assets in South Africa being in operation for the whole of the year compared to just six months in financial 2018. Water shortages in some plants like Lesedi, also in South Africa, following "abnormal summer heat" hurt production during the second quarter however.
Chief Executive Terry McConnachie said: "In the first quarter of 2019, the Sylvania Dump Operations achieved the second highest quarterly production in the history of the company. Unfortunately, due to matters outside of our control that put pressure on operations during the second and third quarters, management thought it prudent to revise annual guidance to 72,000."
"This still required record quarterly production in the fourth quarter. The operations teams took this challenge on board and I am pleased to announce that the operations achieved a new production record for both the fourth quarter and annual ounces," McConnachie added.
Sylvania more than doubled its dividend to 1.00 cents from 0.45 cents, which at the time was its maiden payout.
The firm, at the start of financial 2020, received a ZAR115.0 million, roughly USD7.6 million, cash offer from Forward Africa Mining Pty Ltd to purchase the Grasvally chrome mine located in the Limpopo province of South Africa.
The company expects to produce between 74,000 to 76,000 platinum ounces in the current financial 2020.
Shares in Sylvania were 5.4% higher at 45.30 pence each in London on Monday morning.
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