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LONDON (Alliance News) - Sylvania Platinum Ltd Wednesday said revenue almost halved in the first quarter of the financial year due to a steep drop in production and the contuing decline in platinum prices.
The miner reported revenue totalling USD8.8 million in the first quarter ended September 30, almost half the USD14.5 million reported a year ago. That was also down from USD10.0 million in the quarter ended June 2015.
Earnings before interest, tax, depreciation and amortisation in the quarter dropped to USD1.3 million from USD5.5 million a year ago. Although, Ebitda was up from the USD531,000 reported in the quarter ended June 2015.
Production in the quarter totalled 13,279 ounces, which was up 2% from the previous quarter but substantially down from the 16,639 ounces produced a year earlier.
Compounding those lower production figures is falling platinum prices. Prices averaged USD879 per ounce in the first quarter, a steep 15% fall from the previous quarter when prices averaged USD1,032 per ounce. In the quarter ended September 30, 2014, prices averaged USD895 per ounce, suggesting prices enjoyed a large rise before dropping again since June.
Those prices are the gross basket price, which directly affects the price Sylvania achieves from its operations.
Combating those price falls, Sylvania has reduced its cash costs by 15% between June and September to USD571 per ounce from USD672 per ounce. A year earlier, its cash cost stood at USD570 per ounce, meaning it is broadly flat year-on-year.
Alongside those cash cost cuts, Sylvania reduced its capital expenditure in the first quarter to USD388,000 compared to USD837,000 in the previous quarter and from USD894,000 a year earlier.
At the end of September, Sylvania had a cash balance of USD6.8 million, down from USD8.4 million at the end of June.
Sylvania Platinum shares were untraded on Wednesday morning, last trading at 8.625 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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