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LONDON (Alliance News) - Sylvania Platinum Ltd Tuesday said it has increased revenue during the first quarter, as higher production offset lower prices caused by the reduction in global demand.
The platinum miner also said its cash position remains strong enough for its plan to pay a dividend next year.
During the first quarter ended September 30, revenue increased 2% to USD14.5 million, compared to USD14.2 million in the fourth quarter of 2014, despite the company achieving a lower gross basket price of USD895 per ounce during the quarter compared to USD1,013 per ounce in the immediately previous quarter. The price reduction was due to a recent reduction in global demand and the strengthening of the US dollar, it said.
The lower price was partially offset by a reduction in cash costs during the quarter of USD540 per ounce, down 15% compared to USD634 per ounce in the fourth quarter of 2014. The group cash cost, which includes corporate and administration costs, was down 16% to USD570 per ounce from USD679 per ounce quarter on quarter.
The reduction in cash costs is a result of improvements to cost controls, a reduction in ore transport and equipment hire and lower maintenance costs compared to the previous quarter as a result of fewer breakdowns, said Sylvania in a statement.
During the first quarter ended September 30, platinum group metal production increased 8% to 16,639 ounces compared to 15,435 ounces in the fourth quarter of 2014. It is the sixth consecutive quarter the company has reported increased production growth, it said in a statement.
The company reported a cash balance of USD6.8 million at September 30. "The increase in group cash reserves to USD6.8 million furthermore bodes well for our stated objective of the payment of a dividend in the next year, subject to platinum group metal price and operational performance," said Chief Executive Terry McConnachie.
Sylvania shares were up 0.7% to 7.17 pence per share Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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