News Column

Sylvania Platinum Exceeds Production Guidance

July 24, 2014

Tom McIvor

LONDON (Alliance News) - Sylvania Platinum Ltd Thursday said its full-year production modestly beat its stated production guidance leading to a 22% increase in revenues during the period.

The platinum group metal processor and developer, with operations in South Africa, said its total production for the twelve months ended June 30 increased 22% to a record 53,808 ounces from 44,095 ounces the previous year, exceeding the company's production guidance of 51,000 ounces.

The company said its revenues increased 22% to USD46.4 million from USD38.0 million the previous year the increased production drove up sales despite flat basket prices during the period.

Sylvania Platinum said its production increases were due to increased and more consistent plant feed tons, improved plant stability, improved plant feed grades and technical focus on the operations.

In its fourth quarter, the company said its revenues increased 16% to USD14.2 million from USD12.2 million in the previous quarter as its Sylvania Dump operations platinum group metals production increased 17% to 15,435 ounces from 13,185 ounces in the previous quarter.

In particular, Sylvania saw 53% growth in production at its Doornbosch operations compared to the previous quarter as improved plant feed tonnes and higher plant feed grade contributed to higher ounces.

"This continuous upward production trend for the last five quarters in a row is no mean feat when one considers that this record was achieved during a period of extreme and unprecedented industrial action in the platinum industry," Chief Executive Terry McConnachie said in a statement.

"The capital expenditure on the SDO has been contained to all-time lows, and costs, although slightly up, are still amongst the lowest costs per ounce produced in the industry. Our stable steady state production, reduced capital expenditure and controlled costs bode well for the future of the company," McConnachie added.

Sylvania Platinum shares were up 4.1% to 6.38 pence on Thursday.

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Source: Alliance News

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