(Alliance News) - Sylvania Platinum Ltd on Monday reported the departure of long-serving boss Terry McConnachie after an "excellent" first half.
McConnachie will be stepping down at the end of February. He first joined Sylvania as managing director in 2006, and under his tenure Sylvania's dump operations have grown front one plant to seven operations, and it paid its first dividend in 2018.
He will be replaced by Jaco Prinsloo, who has most recently been managing director of Sylvania's South African operations. Before joining Sylvania, Prinsloo worked at Anglo American PLC.
Sylvania also announced a new chief financial officer on Monday, Lewanne Carminati, who has been in the role of executive officer of finance for South Africa since 2011.
"Terry's contribution to Sylvania over the years has been immense, whilst riding out one of the longest and most difficult downturns in the platinum group metals industry. With his hands-on and entrepreneurial leadership style, Sylvania has grown into one of the world's lowest-cost platinum group metal producers. On behalf of the board, I wish to thank Terry for this legacy," said Chair Stuart Murray.
"Although Terry leaves the company in excellent shape and in good hands, I am nevertheless pleased to advise that Sylvania will continue to have access to Terry's counsel and expertise, as he will assist in an advisory capacity for a minimum 12-month period. This will provide continuity for Sylvania and contribute to the bedding down of the new chrome/coal pelletising joint venture project that was highlighted in my chair's statement in the financial 2019 annual report," Murray added.
Sylvania's revenue for the six months to December surged 84% to USD59.0 million, with pretax profit multiplying to USD33.7 million from USD9.3 million.
Sylvania said profitability has been helped by current PGM prices, as well as an 18% rise in production to 40,003 PGM ounces.
Sylvania has dump operations in South Africa, which comprise of seven platinum group metal recovery plants that treat tailings from surrounding mines on the Bushveld complex. It also owns exploration targets on South Africa's Northern Limb.
"I am pleased to present the half-year results to our shareholders and commend our management and operations teams for the record first-half performance they have achieved, despite the period being known for its challenges experienced due to disruptions relating to the holiday period shut down as well as the additional issues relating to power and water supply constraints," said outgoing CEO McConnachie.
"It is evident the corrective action and implementation of various improvement measures to address challenges experienced during the previous financial year are now showing results and management and the board remain confident the operations should achieve the previously announced guidance for production of 74,000 PGM ounces to 76,000 ounces," he continued.
"Whilst the results for the first half are excellent, the board is mindful of the potential challenges ahead and have therefore decided not to increase guidance until further clarity is obtained."
At the end of January, Sylvania had warned problems such as power and water supply in South Africa were hindering operations.
By George Collard; georgecollard@alliancenews.com
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Sylvania Platinum (SLP)