Sylvania Reports Record 25,971 Ounces of Platinum in First Quarter
Key Facts
Sylvania Platinum said on October 30 that it recorded production of 25,971 ounces of 4E platinum group metals in the first quarter of its 2027 financial year, compared with 23,868 ounces in the previous quarter. The group produced about 31,825 ounces of 6E metals, versus 30,474 ounces in the fourth quarter of the 2026 financial year. The figures included SDO operations and the Thaba joint venture, while SDO alone recorded production of 25,374 ounces of 4E, up 8%, and 31,152 ounces of 6E, up 4%. The company said record production coincided with higher net revenue and adjusted earnings, while production costs per ounce also increased. The results place the company’s first quarter at the start of its progress toward its unchanged annual production target.
Net revenue reached $62.9 million, up 30% from $48.5 million in the previous quarter. This figure includes revenue from third-party feed, by-products and base metals, as well as quarterly sales adjustments. The group’s adjusted earnings before interest, taxes, depreciation and amortization rose to $24.7 million from $16.9 million, an increase of 47%. The company said the increase in net revenue was the main driver of the rise. The average gross 4E basket price in dollars also rose 6% to $2,432 per ounce, from $2,299 in the previous quarter. The chief executive said the higher price and increased 4E production supported revenue during the period.
Operating cash cost per 4E ounce rose 14% to $963, compared with $848 in the previous quarter. The company attributed the increase in the cost per 4E and 6E unit to higher mining costs and lower-than-planned ore feed grades. At Thaba, the volume of ore attributable to the project increased 30% to 63,703 tonnes, but third-party ore accounted for about 25% of total feed during the quarter. The company said the project continued to face mining underperformance and ore-quality problems. It also said the joint venture partner’s mine remained below plan and that it was in discussions with the partner on plans to improve mining performance, ore quality and supply terms.
Chrome production attributable to the group improved to 29,799 tonnes, up 67% from 17,889 tonnes in the previous quarter. The company attributed the improvement at Thaba to plant stability, increased operating hours and processing rates, and the use of third-party ore, despite continued weakness in mining performance and feed quality. By contrast, platinum group metals recovery was negatively affected by increased processing of exposed material at Millsell, which the company said has lower recovery potential than the historical ore mix. The Mooinooi plant experienced a shutdown in part of the primary flotation circuit after a control system failure, requiring extensive repairs and network reconnection. Remedial work continued during the quarter, and the company expects it to be completed in the second quarter of the 2027 financial year.
The group’s cash balance rose 19% to $79.7 million, from $67.2 million in the previous quarter. The company said SDO operations and the Thaba project recorded no lost-time injuries during the quarter. For annual comparison, the company produced 95,885 ounces of 4E in the 2026 financial year, up 18% from 81,002 ounces in the 2025 financial year. The group maintained its annual production target of 85,000 to 95,000 ounces of 4E, alongside 110,000 to 140,000 tonnes of attributable chrome concentrate in the 2027 financial year. These targets come as the company continues to address mining and ore-quality challenges at Thaba and completes remedial work at Mooinooi during the second quarter.