SYLVANIA Platinum said today a correction in the rhodium price led to a reduction in its fourth quarter profit to $14.7m compared to $41.3m in the third quarter.
“Whilst the record profits realised in Q3 were boosted by the spike in the price of rhodium and its effect on our basket price, we have seen quite a pull-back in the rhodium price in recent months which has inevitably impacted the group’s revenue and profit for Q4,” said Jaco Prinsloo, CEO of Sylvania Platinum.
However, the company has registered a strong performance this year with production totalling 70,043 4E PGM (platinum group metals) for the 12 month period ended June. The payment of a dividend would be considered by the board, said Prinsloo.
Sylvania reported a cash balance of $101.1m at the end of the quarter compared to a $102.1m cash balance at the close of the previous quarter. The fourth quarter balance was after payment of the second provisional income tax and royalty tax charges of $35.3m as well as the windfall dividend of $14.3m.
“Whilst PGM production in Q4 was slightly lower than the previous quarter, production of 16,289 4E PGM ounces was in line with management projections and was a robust contribution to our full year production,” said Prinsloo.
Sylvania is working on two short- to medium-term projects: the construction of the Lesedi secondary milling and flotation project which would make a contribution towards production from the second half of the 2022 financial year, and the development of the Tweefontein MF2 project.
The latter had started commissioning with completion anticipated for the first half of Sylvania’s 2023 financial year.
