Aim-listed Sylvania Platinum has reported a 110% year-on-year increase in its net revenue for the six months ended December 31, to $99.8-million, owing to a 25% year-on-year increase in platinum, palladium, rhodium and gold (4E) platinum group metal (PGM) production and a 55% increase in the average basket price in dollar terms.

Sylvania’s adjusted group earnings before interest, taxes, depreciation, and amortisation increased by 414% year-on-year to $51-million, while net profit increased by 222% to $23.2-million.

Capital expenditure for the period of R274.8-million, or $15.8-million, was 14% lower year-on-year, in line with the group’s capital project programme.

The company recognised a non-cash impairment loss of $12.3-million on the Hacra exploration asset, in South Africa, that does not form part of its development plan, as no further additional capital is committed to this project.

In line with its capital allocation commitment, Sylvania says about $2.5-million has been set aside for potential share buybacks, including possible on-market purchases and repurchases of vested ordinary shares from employees, granted under the Sylvania Platinum Bonus Share Award Plan.

The company has reported an interim dividend for the first half of financial year of 2p per ordinary share.

Sylvania CEO Jaco Prinsloo notes that the potential share buybacks would not be immediate and would only start in the third quarter of the financial year.

“Any such buyback of shares would be undertaken subject to prevailing market conditions, regulatory requirements and the company’s ongoing capital needs.

“The final dividend calculation for the year will be determined during the year-end reporting period and remains dependent on the company’s capital requirements and available free cash flow at the time, taking into account actual metal prices and the production profile achieved up to year-end.”

Additionally, Sylvania has reported record production by Sylvania Dump Operations that delivered 49 164 4E PGM ounces for the period, primarily owing to a 9% increase in PGM feed tons and a 10% increase in PGM feed grades.

The company also notes that the construction of the centralised PGM filtration plant has been completed and is fully operational. The company says the successful commissioning marks a major operational milestone that ensures consistent delivery of improved quality concentrate.

Moreover, the Doornbosch and Mooinooi tailings storage facilities (TSFs) have been commissioned.

Sylvania also notes that the first chrome and PGM concentrate products from the Thaba joint venture were dispatched during the period.

While initial production is adversely impacted by the lower run-of-mine (RoM) feed quality from the current pit, linked to early development of the openpit mine and higher than planned waste dilution, a formal review of the current mining operations and resources by specialist mining consultants that is currently underway, will assist to direct resources and mine planning to ensure improved RoM grades over the life of project, says Prinsloo.

He adds that the project remains on track to become an attractive revenue contributor for the company when it reaches full operational nameplate capacity.

As announced on January 27, Sylvania has increased its full-year production guidance to between 90 000 oz and 93 000 oz of 4E PGMs, compared with the initially guided 83 000 oz to 86 000 oz of 4E PGMs, while the chrome production outlook was revised to between 60 000 t and 90 000 t for the current financial year.

The company also notes that the construction of the Lannex and Tweefontein TSFs will begin during the second half of financial year 2026, with completion towards mid-financial year 2027.

Prinsloo adds that the company is also progressing with continuous operational performance improvements across its portfolio including the optimisation of feed sources, throughput, recoveries and cost-saving initiatives.

Enabled by the cash-generative nature of the group’s operations, disciplined control of operating costs and capital expenditure, and supported by record 4E PGM production together with elevated metal prices during the period, Prinsloo says the company maintains a robust cash position.

Sylvania says 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 in order to unlock value for shareholders.