16th Feb 2015 08:52
LONDON (Alliance News) - Sylvania Platinum Ltd shares rose on Monday after it said its earnings significantly increased during the first half of the financial year after revenue rose on the back of increased production and lower costs.
Sylvania shares were up 9.1% to 9.00 pence per share on Monday morning.
For the first half ended December 31, the company reported a pretax profit of USD4.8 million compared to a USD5.2 million loss in the same period a year earlier. Sylvania also reported a rise in adjusted earnings before interest, tax, depreciation and amortization to USD8.1 million from USD1.3 million a year earlier following on from a significant rise in revenue.
Revenue rose by 34% to USD27.5 million from USD20.5 million a year earlier after the company increased production and reduced its costs during the period.
At the end of December, Sylvania reported a cash balance of USD7.8 million.
Total production from the company's dump operations in South Africa totalled 31,341 ounces of platinum group metals during the first half, up 24% from 25,189 ounces a year earlier and 28,619 ounces produced in the second half of 2014, it said.
The company's operational cash costs fell to USD611 per ounce in the first half, from USD744 per ounce in the same period a year earlier after the company initiated cost controls, including reducing ore transport and equipment hire costs, and spending less on maintenance work after reporting fewer breakdowns, it said.
"The main operational focus of the company for the six months to December 31, 2014 has been on maintaining production stability and ounce production. The consistent production over the last 18 months is indicative of the stability of the operations," said Sylvania.
By Joshua Warner; [email protected]; @JoshAlliance
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