On Tuesday, Sylvania (AIM: SLP), a producer and developer of platinum group metals (PGM) with operations in South Africa, reported positive results for the first quarter of the fiscal year 2025, ending 30 September 2024. The company saw a 12% increase in PGM production and an improvement in net revenue compared to the previous quarter.
Sylvania Dump Operations (SDO) produced 19,160 4E PGM ounces during the quarter, up from 17,067 4E ounces in Q4 FY2024. This increase in production contributed to a rise in net revenue to $21.9 million for the quarter, up from $20.6 million in the preceding quarter. Group EBITDA also grew to $3.3 million, compared to $2.8 million in Q4 FY2024.
The company's cash balance as of 30 September 2024 stood at $94.7 million, a slight decrease from $97.8 million as of 30 June 2024. Importantly, the quarter was marked by safe operations with no Lost-Time Injuries (LTIs) reported.
Progress was noted on the Thaba Joint Venture (Thaba JV) project, which is on track to begin its first production in the second half of FY2025. The construction of the chrome and PGM beneficiation plants is advancing well. Additionally, the Volspruit Scoping Study's Competent Person Report, finalized in August 2024, indicated an increased pre-tax net present value (NPV) to $69.0 million for a 14-year life of mine, a significant rise from $27.3 million in 2022.
Looking ahead, Sylvania remains on course with its operational and strategic plans. The annual production target of 73,000 to 76,000 4E PGM ounces for FY2025 remains unchanged. A geophysical survey at the Aurora project is set to commence in Q2 FY2025, with results expected in the following quarter. The company's robust cash reserves will support ongoing capital requirements, potential shareholder returns, and operational enhancements.
Furthermore, Sylvania declared a final dividend of one pence per Ordinary Share for FY2024, bringing the total dividend for the year to three pence per Ordinary Share. The Annual General Meeting (AGM) is scheduled for 29 November 2024.
Sylvania's CEO, Jaco Prinsloo, expressed satisfaction with the quarter's strong performance, highlighting a significant increase in production and an improvement in profits despite a slight decrease in the average 4E gross basket price. Prinsloo credited disciplined operational and cost control initiatives for the improved cash unit cost and commended the management teams for their efforts during the quarter.
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