Sylvania (AIM: SLP) is pleased to announce the results for the quarter ended 30 September 2021 ('Q1' or the 'quarter').

Unless otherwise stated, the consolidated financial information contained in this report is presented in United States Dollars ('USD')

Achievements

Record PGM performance by Tweefontein contributed towards Sylvania Dump Operations ('SDO') achieving 15,771 4E PGM ounces in Q1 (Q4 FY2021: 16,289 ounces) despite the temporary production suspension at Lesedi; SDO recorded $29.8 million net revenue for the quarter (Q4 FY2021: $48.4 million) impacted by 29% decrease in gross PGM basket price; Group EBITDA of $13.6 million (Q4 FY2021: $28.7 million); Net profit of $8.6 million (Q4 FY2021: $14.7 million) and Cash balance of $132.7 million (Q4 FY2021: $106.1 million).

Challenges

The temporary suspension of operations at Lesedi extended through Q1 and will be ramped up to normal capacity towards the end of Q2, as hydro-mining of the affected tailings dam facility commenced at the end of September and Lower than planned RoM and current arising PGM feed grades and associated recovery efficiency at Mooinooi impacted ounce production during the quarter and we are working with host mines to optimise grades at source.

Opportunities

Higher throughput rate and recovery efficiencies achieved by Tweefontein, which set a new monthly SDO record of 2,209 production ounces during the past quarter, is expected to continue during the financial year and will assist to mitigate the impact of Lesedi's lower production; Construction on the new tailings dam facility at Lesedi is underway with completion scheduled for Q3; The secondary milling and flotation ('MF2') projects at Lesedi and Tweefontein are on track to start contributing towards production as planned during the 2023 calendar year and The Group maintains strong cash reserves to allow funding of capital expansion and process optimisation projects; the safeguarding of employees during these times of uncertainty; upgrading the Group's exploration and evaluation assets and returning value to all stakeholders.

Commenting on the Q1 results, Sylvania's CEO, Jaco Prinsloo said: 'I am delighted by Tweefontein achieving 2,209 ounces during September 2021, which is a new monthly record on both a plant level and across all operations and contributed towards a solid quarterly performance by the operations to achieve 15,771 ounces for the quarter, despite the interruption at Lesedi. Although the planned precautionary temporary stop at Lesedi has resulted in approximately 1,100 ounces production loss for the plant since early August, I have to commend our management team and consultants in terms of their efforts to ensure we preserve the integrity of the facility and for the measures put in place to resume production. 'The 29% reduction in PGM basket price had a significant impact on the revenue for the quarter and also resulted in a substantial sales adjustment for the previous quarter's production that was forecast at higher metal prices. The global computer chip shortage that currently impacts new motor vehicle production and autocatalyst demand, is one of the most significant factors driving the basket price movement. Most analysts only forecast this issue to be resolved by late 2021 or early 2022. PGM prices are however, still significantly higher than historical levels and by focusing on the areas that management can control, I am sure that we will continue to generate value to shareholders. 'I am pleased to report that there is a steady uptick in PGM feed source grade and recoveries, despite the receipt of a lower volume of plant feed in this quarter, and that the costs of production are showing some improvement. Our capital projects, fully funded from current cash reserves, are progressing well and I am optimistic that the results of these efforts will steadily show themselves as we navigate our way through FY2022 and we remain confident in attaining our annual production target of 70,000 ounces

Contact:

Tel: +27 11 673 1171

About Sylvania Platinum Limited

Sylvania Platinum is a lower-cost producer of platinum group metals (PGM) (platinum, palladium and rhodium) with operations located in South Africa. The Sylvania Dump Operations (SDO) comprises six chrome beneficiation and PGM processing plants focusing on the retreatment of PGM-rich chrome tailings materials from mines in the Bushveld Igneous Complex. The SDO is the largest PGM producer from chrome tailings re-treatment in the industry. The Group also holds mining rights for PGM projects and a chrome prospect in the Northern Limb of the Bushveld Complex

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse regulation (EU) no.596/2014 as amended by the Market Abuse (Amendment) (EU Exit) Regulations 2019. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Jaco Prinsloo.

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