London-listed platinum group metals (PGMs) and chrome company Sylvania Platinum had a “good start” to its 2024 financial year, with the Sylvania Dump Operations (SDO), in South Africa, having produced 20 173 oz of platinum, palladium, rhodium and gold (4E) in the first quarter ended September 30, in line with guidance, CEO Jaco Prinsloo says.

He avers that this performance was achieved on the back of a solid production effort from all operations, with all plants exceeding production throughput targets, as well as the contribution of the new Lannex flotation MF2 circuit that also added to the performance.

The Lannex MF2 flotation circuit was commissioned, with optimisation said to be well advanced.

Improved recoveries are expected at the completion and commissioning of the Lannex fine grinding circuit.

Prinsloo says the 15% lower PGM basket price recorded during the quarter impacted both the 4E revenue, as well as the sales adjustment for this period, and consequently, profits were lower than in the quarter ended September 30, 2022.

However, the group says it maintained a strong cash position.

SDO recorded $19.7-million in net revenue for the period, compared with $24.4-million in the prior comparable quarter.

Group earnings before interest, taxes, depreciation and amortisation were $2.8-million, compared with $7.8-million in the prior comparable quarter.

“On the cost front, SDO’s cash costs decreased by 3% in both rand and dollar terms, benefiting from the higher ounces produced compared with the quarter ended June 30. Operations continue to navigate higher global cost inflation impacts and thus operating cost focus remains a top priority for management,” Prinsloo points out.

No lost-time injuries were recorded during the quarter under review.

As reported in August, Sylvania Platinum’s wholly owned South African subsidiary Sylvania Metals entered into an unincorporated joint venture (JV) agreement with design engineer ChromTech Mining Company subsidiary Limberg Mining Company.

The JV will process PGM and chrome ores from historical tailings dumps and current arisings (mining area) from the Limberg chrome mine, located on the northern part of the western limb of the Bushveld Complex in South Africa. The JV will trade and operate under the name Thaba JV.

Prinsloo acclaims that this represents a key milestone in Sylvania’s growth strategy and is a significant step forward for Sylvania in expanding its operations and leveraging the group’s expertise in the recovery of chrome and PGM concentrates.

Project execution for the JV is noted to be progressing as planned and ordering of long lead time items and first construction packages are in progress, with civil construction works expected to begin in the next quarter.  

OUTLOOK

Commissioning of the Lannex fine grinding circuit is expected by the end of the next quarter.

Continuous operational performance improvements relating to the optimisation of feed sources, throughput, recoveries and cost-saving initiatives have been implemented.

An updated mineral resource estimate statement for both Volspruit North and South orebodies is currently under review.

A preliminary economic assessment for the entire Volspruit project, along with the results from the metallurgical test work, are expected to be completed during the second half of the 2024 financial year.

“The optimisation of value from the exploration assets remains a key component of Sylvania’s growth strategy and will aid in supporting the company’s future value proposition for all stakeholders,” Prinsloo says.

Sylvania says it maintains strong cash reserves, which increased 2% in the quarter under review to allow funding of expansion and JV initiatives, process optimisation capital, upgrading of the group’s exploration and evaluation assets with the potential to return value to shareholders.