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LONDON (Alliance News) - Sylvania Platinum Ltd on Monday reported a rise in first half profit and said that platinum production, although marginally higher year-on-year, was below management expectations.
Shares in the South Africa-focused miner were trading 2.3% higher at 20.35 pence each in London.
For the six months to the end of December, the company recorded pretax profit of USD9.3 million, up from USD7.9 million in the year-ago period, on revenue of USD32.1 million and USD28.2 million, respectively.
Earnings before interest, taxes, depreciation and amortisation grew 19% to USD12.3 million from USD10.3 million.
Sylvania produced 34,045 ounces of platinum group metals in the first half, marginally higher than 33,892 ounces in the comparative prior-year period.
"Although the half-year on half-year PGM production improved marginally, the six-monthly production was lower than planned primarily due to a combination of lower PGM plant feed tons and recovery efficiencies," the company said, adding that the Lesedi operation in particular experienced significant downtime during November and December due to water shortages and was only able to treat 52% of its planned capacity in the second quarter.
The company has lowered its annual production guidance for the 2019 financial year as a result to between 73,000 and 76,000 ounces from 76,000 to 78,000 ounces. It said it has taken action and implemented improvement measures to address challenges experienced in the first half and ensure production targets are met for the remainder of the year.
"I am confident in achieving our revised production guidance of between 73,000 and 76,000 ounces for 2019 financial year," Chief Executive Terry McConnachie said.
