Sylvania Reports Growth in PGM Production and Revenue for Q1 FY2025
On Tuesday, Sylvania (AIM: SLP), a producer and developer of platinum group metals (PGM) with operations in South Africa, announced positive results for the first quarter of the financial year 2025, ending September 30, 2024. The company recorded a 12% increase in PGM production compared to the previous quarter and an improvement in net revenue.
Sylvania Dump Operations (SDO) produced 19,160 4E PGM ounces during the quarter; this figure is higher than the 17,067 4E ounces from the fourth quarter of the 2024 financial year. This increase in production contributed to net revenue rising to $21.9 million for the quarter, compared to $20.6 million in the previous quarter. Group EBITDA also increased from $2.8 million in the fourth quarter of the 2024 financial year to $3.3 million.
As of September 30, 2024, the company's cash balance stood at $94.7 million, showing a slight decrease from $97.8 million as of June 30, 2024. Importantly, there were no Lost Time Injuries (LTI) reported during the quarter, ensuring safe operations.
Progress has been made on the Thaba Joint Venture (Thaba JV) project, which is on track to commence initial production in the second half of the 2025 financial year. The construction of the chrome and PGM enrichment facilities is proceeding well. Additionally, the Competent Person Report for the Volspruit Scoping Study, completed in August 2024, indicated that the pre-tax net present value (NPV) for a 14-year mine life has increased to $69.0 million, a significant rise from $27.3 million in 2022.
Looking ahead, Sylvania is progressing according to its operational and strategic plans. The annual production target for the 2025 financial year remains unchanged at 73,000 to 76,000 4E PGM ounces. Geophysical surveys for the Aurora project are planned to begin in the second quarter of the 2025 financial year, with results expected in the following quarter. The company's strong cash reserves will support ongoing capital requirements, potential shareholder returns, and operational improvements.
Furthermore, Sylvania announced a final dividend of one penny per Ordinary Share for the 2024 financial year, bringing the total dividend for the year to three pence per Ordinary Share. The Annual General Meeting (AGM) is scheduled for November 29, 2024.
Sylvania's CEO, Jaco Prinsloo, expressed satisfaction with the strong performance of the quarter, noting significant increases in production and improvements in profitability despite a slight decline in the average 4E gross basket price. Prinsloo praised the disciplined operational and cost control initiatives for improved cash unit costs and acknowledged the management teams for their efforts throughout the quarter.
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