Aim-listed Sylvania Platinum has increased its 2025 production guidance to between 75 000 oz and 78 000 oz of platinum, palladium, rhodium and gold (4E) platinum group metals (PGMs), from the previous guidance of between 73 000 oz and 76 000 oz of 4E PGMs on the back of solid production in the first half of the financial year.

The Sylvania Dump Operations (SDO) produced 39 398 oz of 4E PGMs for the six months ended December 31, 2024, marginally ahead of its forecast for the period.

The six months under review also ranked among the top three of the company’s highest half-year production records.

“This performance is primarily due to a 17% increase in PGM feed grades compared with the corresponding period in the first half of the prior financial year,” CEO Jaco Prinsloo explains.

“During the period, we also successfully concluded a two-year wage deal with the trade unions at the Western and Eastern Operations, which were in line with expectations and are both fair for employees and affordable for the company in the current PGM price environment.

“Moreover, reflecting a strong production performance for the period, the company’s revenue and net profit improved compared with the corresponding period in the prior financial year, despite the lower PGM basket price,” Prinsloo asserts.

Net revenue generated for the period was $47.6-million, a 17% increase owing to higher ounce production and an increase in the average basket price in US dollar terms.

Net profit of $7.2-million increased from $3.1-million in the prior comparable period.

Group earnings before interest, taxes, depreciation and amortisation of $9.9-million was 36% higher year-on-year.

Sylvania’s cash balance stood at $77.5-million as at December 31.

Improvements were achieved in flotation feed grades primarily at the group’s Mooinooi, Tweefontein and Lannex operations, as well as improvements in the quality of feed material from host mines during the period.

The competent person report for the Volspruit scoping study was finalised in August and indicates an increased pre-tax net present value of $69-million for a 14-year life of mine.

All operations remain fatality free since inception in 2007.

One lost-time injury was reported, the best performance in Sylvania’s history.

Women-representation increased to 28.19% from 23.47%.

Water usage decreased 1.41 m³/t treated from 2.84 m³/t in the prior comparable period.

OUTLOOK

With the new host mine run-of-mine plant commissioned at Lesedi during the period, higher-grade current arisings are expected to achieve steady state operation towards the end of quarter three, which is expected to boost PGM ounce production and profitability at the operation.

Construction of the centralised PGM filtration plant at Lesedi is also indicated to be progressing well and is on schedule to be completed during quarter two of full year 2026.

The Thaba JV project is on schedule to start first production by May with all phases of construction of the chrome and PGM beneficiation plants said to be progressing well.

The operational readiness phase of the Thaba JV will continue during quarter three.

The group remains debt free and continues to fund capital expansion projects and process optimisation projects from cash reserves and aims to support growth initiatives to unlock value for shareholders.