London-listed platinum group metals (PGM) and chromium company Sylvania Platinum has made a “good start” to its 2024 financial year. South Africa’s Sylvania Dump Operations (SDO), which produced 20,173 ounces of platinum, palladium, rhodium and gold (4E), said results for the first quarter ended September 30 were in line with expectations.
He stressed that this achievement was achieved on the basis of solid production efforts across all operating divisions, with all plants exceeding production targets, as well as the contribution of Lannex’s new MF2 flotation circuit, which also contributed to the performance.
The Lannex MF2 flotation circuit is now operational and optimization work is said to be well advanced.
Production is expected to increase with the completion and commissioning of the Lannex fine grinding circuit.
Prinsloo said a 15% drop in PGM basket prices during the quarter impacted 4E sales and sales adjustments for the period, resulting in lower profits than in the quarter ended September 30, 2022.
However, the group said its liquidity position was strong.
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SDO reported net sales of $19.7 million during the period, compared with net sales of $24.4 million in the prior quarter.
Net income before interest, taxes, depreciation and amortization was $2.8 million, compared with $7.8 million in the prior quarter.
“On the cost side, SDO’s cash costs fell by 3% in both rand and dollar terms, driven by higher production compared to the quarter ended June 30, which is management’s top priority,” Prinsloo highlighted.
There were no lost-work injuries during the quarter.
Sylvania Platinum entered into a joint venture (JV) agreement with subsidiary Limberg Mining Company
Sylvania Platinum’s wholly-owned South African subsidiary Sylvania Metals has entered into an unincorporated joint venture (JV) agreement with subsidiary Limberg Mining Company, a subsidiary of development engineer ChromTech Mining Company, it was reported in August.
The joint venture will process platinum group metals and chrome ore from the historic tailings and existing deposits (mining areas) of the Limberg chrome mine located in the western north of the Bushveld complex in South Africa. The joint venture will trade and operate under the name Thaba JV.
Prinsloo acknowledged that this is an important milestone in Sylvania’s growth strategy and an important step forward for Sylvania in expanding its business and leveraging the group’s expertise in chromium and platinum group metal concentrate recycling.
Notably, project execution of the joint venture is proceeding as planned, with ordering of long-lead projects and initial construction packages underway. Construction work is expected to begin next quarter.
The Lannex fine grinding circuit is expected to be operational by the end of next quarter.
Ongoing operational performance improvements related to optimizing feed sources, yields, yields and cost savings initiatives have been implemented.
The latest Mineral Resource Estimates for the North and South Walspruit orebodies are currently under review.
A preliminary economic assessment of the entire Volspruit project, as well as the results of metallurgical test work, are expected to be completed in the second half of fiscal 2024.
“Optimizing the value of exploration assets remains an important part of Sylvania’s growth strategy and will help support the company’s future value proposition to all stakeholders,” Prinsloo said.
Sylvania said it has strong cash reserves, which grew 2% in the quarter, to fund expansion and joint venture plans, process optimization and modernization of the group’s exploration and evaluation assets, which have the potential to create value for shareholders.