Monday, February 21, 2022

Sylvania Platinum : Interim Monetary Outcomes for the six months ended 31 December 2021

Administrators’ Report The Administrators current their report on the consolidated entity (referred to hereafter on this report because the Group)…

By Staff , in Platinum , at February 21, 2022

Administrators’ Report

The Administrators current their report on the consolidated entity (referred to hereafter on this report because the Group) consisting of Sylvania Platinum Restricted (Sylvania or the Firm), its subsidiaries, associates and joint association for the half 12 months ended 31 December 2021. Except in any other case said, the monetary info contained on this report is offered in United States {Dollars} (USD).


The names of Administrators who held workplace throughout or because the finish of the half 12 months and till the date of the report are famous beneath. Administrators had been in workplace for the total interval except in any other case said.

SA Murray

Non-executive Chairman

RA Williams

Non-executive Director (resigned efficient 31 December 2021)

E Carr

Non-executive Director

AJ Reynolds

Non-executive Director (appointed efficient 1 August 2021)

S Scott

Non-executive Director (appointed efficient 1 January 2022)

JJ Prinsloo

Chief Government Officer

L Carminati

Chief Monetary Officer

Evaluate of Operations and Half Yr Monetary Outcomes

The Sylvania money producing subsidiaries are integrated in South Africa with the useful forex of those operations being South African Rand (ZAR). Revenues from the sale of PGMs are acquired in United States {Dollars} (USD) after which transformed into ZAR.

Company, common and administration prices are incurred in USD, Kilos Sterling (GBP) and ZAR.

For the six months underneath evaluate the typical USD:ZAR alternate price was ZAR15.03:$1 and the closing

alternate price at 31 December 2021 was ZAR15.95:$1.

Operational performance

The Sylvania Dump Operations (SDO) achieved 32,376 ounces for the primary half of the 2022 monetary 12 months which was 11% decrease than the corresponding interval within the 2021 monetary 12 months. Half-year on half-year PGM manufacturing decreased 11%, primarily because of decrease remedy volumes at Lesedi. A mixture of decrease PGM feed grades and restoration efficiencies related to ROM materials acquired from the host mine at Mooinooi and Lannex through the interval, additionally contributed to the lower.

Whereas all different operations both met or exceeded their deliberate manufacturing volumes, the 7% lower in PGM plant feed tons through the interval was because of the tailings dam associated manufacturing interruption and water shortages at Lesedi. PGM plant feed grade decreased by 1% through the interval, related to decrease grade dump feed at Millsell and low-grade ROM sources at Mooinooi. PGM plant restoration decreased 3% when in comparison with HY1 FY2021, primarily associated to increased ratios of extra oxidised ROM materials handled on the Lannex and Mooinooi operations.

Consequently, because of the aforementioned impacts, a modest adjustment in PGM manufacturing estimate was thought-about prudent, with 66,000 to 68,000 ounces now focused by the Firm for the total 12 months.

A rise of 23% in SDO money prices per ounce in ZAR phrases, impacted by the decrease PGM ounce manufacturing, mixed with a 7% stronger ZAR:USD alternate price, resulted in a rise of 32% in USD phrases from $616/ozto $815/oz.

A better electrical energy value because of above inflation price will increase and better mining prices because of a bunch mine subsidy paid in an try and safe increased grade feed materials, additionally affected the rise within the money value. As well as, an increase within the consumption of consumables to accommodate the upper ratio of ROM materials at Lannex, in addition to extra oxidised materials at Mooinooi and Lesedi, had been probably the most vital contributors to the upper money value. Value management stays key and administration continues to drive numerous methods focussed on effectively managing prices.

Operational focus areas

Through the interval, the SDO continued to interact with the host mines with a purpose to handle the decrease PGM grades in ROM and present arising sources, in addition to optimisation of mixing actions from floor sources. Varied sampling campaigns and investigations have been carried out along with the host mine to judge potential different feed sources. It’s anticipated that ROM feed grades ought to enhance throughout HY2 FY2022.

The remedial motion plan to mitigate related dangers referring to the Lesedi tailings facility, which necessitated a brief stoppage of operations in Q1, concerned the graduation of hydro-mining of the affected tailings facility through the interval. Nevertheless, because of the nature of the emergency tailings deposition facility and issue in recovering return-water from it, mixed with common water shortages within the space, the operation had not been capable of ramp as much as regular manufacturing ranges as anticipated in Q2. Submit interval finish, the operation commissioned a brand new water provide from moreover put in boreholes and has additionally commenced with the commissioning of the newly constructed tailings facility, which is predicted to alleviate water shortages permitting the graduation of regular operations.

Along with water constraints, energy provide to operations stays a spotlight space, as vandalism and cable theft at substations proceed, usually leading to unplanned delays to the operations. Energy mitigation methods have been developed and are being carried out on the most affected operations.

Capital initiatives

Capital spend elevated through the present interval in comparison with the prior 12 months corresponding interval from $2.5 million to $7.4 million throughout HY1 2022, comprising $6.1 million optimisation and keep in enterprise capital that features the abovementioned initiatives, in addition to $1.3 million spend on exploration initiatives. All capital initiatives are totally funded from present money reserves.

The secondary milling and flotation (MF2) initiatives at Lesedi and Tweefontein are nonetheless in progress and on observe to start out contributing in the direction of manufacturing throughout March 2022 and H1 FY2023 respectively. The

development of the MF2 modules on the crops.


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