TIDMSLP
RNS Number : 3271Q
Sylvania Platinum Limited
18 February 2019
_____________________________________________________________________________________________________________________________
18 February 2019
Sylvania Platinum Limited
("Sylvania", "the Company" or "the Group")
AIM (SLP)
Interim financial results for the six months ended 31 December
2018
The Directors are pleased to present the interim financial
results for the six months ended 31 December 2018. Unless otherwise
stated, the consolidated financial information contained in this
report is presented in USD.
Achievements
-- SDO delivered 34,045 4E PGM ounces (HY1 FY2018: 33,892 4E PGM ounces);
-- Revenue generated for the period of $32.1 million, net of
pipeline sales adjustments, a 14% improvement on HY1 FY2018;
-- Group EBITDA up 19% to $12.3 million (HY1 FY2018: $10.3 million);
-- Net profit up 29% to $6.95 million (HY1 FY2018: $5.4 million);
-- A three-year wage agreement was concluded for the Western operations;
-- PGM grade and recovery optimisation capital projects were
commissioned at the Millsell, Doornbosch and Tweefontein
operations;
-- Cash balance of $20.2 million (HY1 FY2018: $12.6 million);
-- Paid maiden dividend of 0.35 pence per Ordinary $0.01 Share ("Ordinary Shares"); and
-- Completed the non-UK Shareholders buy-back program on 24
August 2018. A total of 2.4 million Ordinary Shares were cancelled
under this program, and a further 516,632 Ordinary Shares bought
back and cancelled during the period.
Challenges
-- Power utility infrastructure and supply issues resulting in
distribution interruptions and instability still present challenges
to existing operations and the execution of expansion
processes;
-- Abnormal summer heat and drought conditions resulted in water
shortages, particularly at Lesedi where there is no current
arisings feed source or tails slurry from a host-mine at
present;
-- The tailings dump currently being re-mined at Doornbosch is
approaching its end of life, resulting in inconsistent grade and
mining downtime;
-- Lower percentage of fresh current arisings feed received from
the host mines at both Tweefontein and Millsell related to
underground incidents external to Sylvania's operations during
second quarter; and
-- PGM recoveries at Mooinooi impacted by oil-contaminated feed
material during the first quarter.
Opportunities
-- Project Echo MF2 module for Mooinooi fast-tracked to mitigate
the impact of the delay to the Tweefontein MF2 module due to power
availability. Scheduled for commissioning in H2 FY2019;
-- Relocation of redundant Steelpoort chrome circuit to Lesedi
in progress which will improve chrome removal ahead of flotation
and enable higher PGM feed;
-- Improved PGM fines classification circuits were commissioned
at Millsell, Doornbosch and Tweefontein operations during the past
quarter and will contribute towards the PGM ounce profile during H2
FY2019; and
-- The Company remains debt free and continues to generate
sufficient cash reserves to fund capital expansion projects.
Commenting on the period, Sylvania's CEO Terry McConnachie
said:
"Despite some operational challenges faced, particularly during
the second half of the period, the SDO produced 34,045 4E PGM
ounces, a marginal improvement on the prior year's comparative
period. The management and operational teams have worked tirelessly
to address these challenges and I am confident in achieving our
revised production guidance of between 73,000 and 76,000 ounces for
FY2019."
USD Unit Unaudited Unit ZAR
% Change HY1 2018 HY1 2019 HY1 HY1 2018 % Change
2019
------------------- -------------------- ---------------- ------------------ ---------
Production
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
9% 1,097,568 1,195,906 T Plant Feed T 1,195,906 1,097,568 9%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
-4% 2.46 2.36 g/t Feed Head Grade g/t 2.36 2.46 -4%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
PGM Plant Feed
4% 584,850 607,018 T Tons T 607,018 584,850 4%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
PGM Plant Feed
2% 3.60 3.66 g/t Grade g/t 3.66 3.60 2%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
PGM Plant
-1% 48.00% 47.65% % Recovery % 47.65% 48.00% -1%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
0% 33,892 34,045 Oz Total 4E PGMs Oz 34,045 33,892 0%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
1% 45,224 45,727 Oz Total 6E PGMs Oz 45,727 45,224 1%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
Average gross
14% 1,057 1,201 $/oz basket price R/oz 17,134 14,153 21%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
Financials
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
12% 23,779 26,516 $'000 Revenue (4E) R'000 376,149 318,400 18%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
Revenue (by
84% 1,645 3,020 $'000 products) R'000 42,843 22,032 94%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
-7% 2,755 2,557 $'000 Sales adjustments R'000 36,266 36,894 -2%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
14% 28,180 32,092 $'000 Net revenue R'000 455,258 377,330 21%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
10% 17,032 18,738 $'000 Operating costs R'000 265,891 228,058 17%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
General and
administrative
24% 853 1,054 $'000 costs R'000 14,957 11,422 31%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
19% 10,322 12,323 $'000 Group EBITDA R'000 174,859 138,213 27%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
-27% 330 240 $'000 Net Interest R'000 3,403 4,419 -23%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
-5% 2,504 2,367 $'000 Taxation R'000 33,594 33,529 0%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
Depreciation
19% 2,723 3,241 $'000 and amortisation R'000 45,988 36,461 26%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
29% 5,400 6,954 $'000 Net profit R'000 98,679 72,306 36%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
Capital
-15% 4,509 3,855 $'000 Expenditure R'000 54,696 60,376 -9%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
- - - R/$ Ave R/$ rate R/$ 14.19 13.39 6%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
60% 12,644 20,220 $'000 Cash Balance R'000 286,928 177,269 62%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
Unit
Cost/Efficiencies
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
SDO Cash Cost
10% 502 550 $/oz Per 4E PGM oz R/oz 7,805 6,728 16%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
SDO Cash Cost
9% 377 410 $/oz Per 6E PGM oz R/oz 5,814 5,042 15%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
Group Cash Cost
10% 526 577 $/oz Per 4E PGM oz R/oz 8,194 7,043 16%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
Group Cash Cost
9% 394 430 $/oz Per 6E PGM oz R/oz 6,100 5,268 16%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
All-in sustaining
11% 532 590 $/oz cost (4E) R/oz 8,369 7,127 17%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
9% 636 692 $/oz All-in cost (4E) R/oz 9,819 8,515 15%
------------------- -------------------- ------ ------------------ ------ ---------------- ------------------ ---------
The Sylvania cash generating subsidiaries are incorporated in
South Africa with the functional currency of these operations being
ZAR. Revenues from the sale of Platinum Group Metals ("PGM's") are
incurred in USD and then converted into ZAR. The Group's reporting
currency is USD as the parent company is incorporated in Bermuda.
Corporate and general and administration costs are incurred in USD,
GBP and ZAR.
For the six months under review, the average ZAR:USD exchange
rate was ZAR14.19:$1 and the closing exchange rate was
ZAR14.44:$1.
A. OPERATIONAL OVERVIEW
Health, safety and environment
There were no significant health or environmental incidents
during the period, with Lesedi and Millsell achieving seven and
four-years Lost Time Injury ("LTI") free respectively. Tweefontein
and Doornbosch operations have also remained LTI free for more than
six years.
Health, safety and environmental compliance remains a key
priority for the Company and the combined effort between management
and all the employees across the operations, together with the
overall safety culture, have contributed towards the high safety
standards and plant conditions.
Operational performance
The Sylvania Dump Operations ("SDO") achieved 34,045 ounces for
the period, a marginal improvement on the 33,892 ounces for the
comparative period in the prior year. Although lower than planned,
this was still a fairly solid performance from most operations
under very difficult operational circumstances, especially in the
second quarter, which had a direct impact on ounce production.
Cash costs per ounce for the SDO increased by 16% in ZAR terms,
primarily as a result of Lesedi's larger contribution of PGM ounces
for the full H1 FY2019 period compared to only two months in the H1
of FY2018. Lesedi was acquired by the Group in November 2017 and
work continues to bring its cash costs down in line with other
operations. However, the unit cost at Lesedi was particularly high
during the past period due to low PGM production brought about by
water shortages. Additional re-mining cost at Doornbosch related to
the re-mining challenges on the current dump. With most of the
challenges now resolved and mitigation measures implemented, it is
expected that cash costs will improve in line with the forecast
increased ounce production in H2 FY2019.
In USD terms, this increase in cash costs was limited to 10% as
a result of the weaker ZAR exchange rate compared to the
comparative period in the prior year.
A three-year wage agreement, on behalf of the employees, for the
Western operations was concluded during the period with the
National Union of Mineworkers. This agreement is in line with the
industry salary benchmarks and the SDO cost forecasts going
forward.
Operational challenges
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 Lesedi operation in particular
experienced significant downtime during November and December 2018
due to water shortages in the area, resulting in the plant only
being able to treat 52% of its planned treatment tonnage for the
second quarter. Doornbosch's dump re-mining, where the current dump
is reaching its end of life, experienced significant downtime and
feed instability that impacted negatively on plant throughput and
recovery efficiencies.
Other contributors affecting PGM production include the lower
percentage of fresh current arisings feed received from the host
mines at both Tweefontein and Millsell during the last quarter,
following DMR safety stoppages related to underground incidents
external to Sylvania's operations, as well as oil contaminated feed
material impacting recoveries during the first quarter at
Mooinooi.
Capital Projects
The Project Echo MF2 modules are progressing well with the
Millsell and Doornbosch MF2 modules in operation since early 2018
and Mooinooi MF2 module under construction and expected to be
commissioned during the last quarter of this financial year.
Doornbosch MF2 performed according to design since
commissioning, but Millsell MF2 was performing below design and had
some initial challenges related to new fines flotation technology
implemented on this plant, which were only resolved with the
retrofit and commissioning of new high-intensity flotation
mechanisms in the circuit towards the end of 2018. The MF2 plants
at both operations are expected to deliver to full potential going
forward.
Delays in the roll-out of the Project Echo MF2 at Tweefontein,
due to power constraints, were counteracted by fast-tracking the
module at Mooinooi which is progressing well. Construction at
Tweefontein is expected to begin towards the end of 2019, depending
on completion of an infrastructure upgrade by the national power
utility to ensure stable and reliable supply to both the host mine
and Sylvania's operation. The upgrade by the power utility has
commenced and expected to commission by FY2020.
The Lesedi chrome plant project, comprising the dismantling and
relocation of the redundant Steelpoort chrome circuit, has
commenced and is expected to be completed in the second half of the
financial year. This will enable chrome removal ahead of Lesedi's
PGM plant, aligned with the standard SDO operating model employed
at existing operations in the Group, and will contribute towards
higher PGM feed grades and ounce production at the operation.
PGM grade and recovery optimisation initiatives, incorporating
proprietary processing modifications, that were identified at
Millsell, Doornbosch and Tweefontein operations, were completed
towards the end of the period. The process circuit modifications
utilise enhanced fine screening technology for more efficient
upgrading of PGMs and optimisation post-commissioning is complete
for all plants. This will assist in enhancing PGM recoveries
towards obtaining planned annual production.
Outlook
Management have taken necessary action and implemented various
improvement measures to address the challenges experienced during
the first half of the year in order to mitigate their impact and to
ensure that planned production targets are met for the remainder of
the year. Although the SDO team is continuously looking at ways to
compensate for H1 losses during H2, we have revised the current PGM
production guidance for the 2019 financial year to between 73,000
and 76,000 ounces from 76,000 to 78,000 ounces. Cash generation and
delivering on capital projects also remain key focus areas.
B. FINANCIAL OVERVIEW
CONSOLIDATED STATEMENT OF PROFIT OR
LOSS
For the half year ended 31 December 31 December 31 December
2018 2018 2017
Notes $ $
Revenue 1 32,092,210 28,179,974
Cost of sales (21,958,523) (19,755,236)
Gross profit 10,133,687 8,424,738
Other income 34,256 5,056
Other expenses 2 (1,086,176) (855,459)
Operating profit before net finance
income and income tax expense 9,081,767 7,574,335
Finance income 423,423 469,576
Finance costs (183,625) (139,104)
------------- -------------
Profit before income tax expense 9,321,565 7,904,807
Income tax expense (2,367,469) (2,504,486)
Net profit for the period 6,954,096 5,400,321
============= =============
Cents Cents
Profit per share for profit attributable
to the ordinary equity holders of the
Company:
Basic earnings per share 2.43 1.88
Diluted earnings per share 2.41 1.86
1. Revenue is generated from the sale of PGM 6E ounces produced
at the seven retreatment plants, net of pipeline sales
adjustments.
2. Other expenses relate to corporate activities and include
consulting fees, audit fees, travel, advisor and PR costs, share
registry costs,
Directors' fees, share based payments and other smaller
administrative costs.
The Gross basket price for PGMs for the six months to 31
December 2018 was $1,201/ounce compared to $1,057/ounce for the
period ended 31 December 2017. Although the average price of
Platinum has dropped, the steady increase in both Palladium and
Rhodium prices have had a favourable impact on the basket
price.
The Group recorded net revenue of $32.1 million for the six
months to December 2018, as a result of the higher basket price.
Revenue from by-products increased by $1.4 million compared to the
comparative period in the prior year. The Iridium price increased
from an average of $969 to $1,452 per ounce in the two respective
periods. Ruthenium increased from an average of $98/ounce for the
six months to 31 December 2017 to an average of $262/ounce for the
six months to 31 December 2018, a 167% improvement.
The cost of sales are the direct and indirect costs of producing
the PGM concentrate and amounted to ZAR265.9 million for the
reporting period compared to ZAR228.1 million in the six months to
31 December 2017. The inclusion of the full six months of the
Lesedi operation acquired in November 2017, at a higher operating
cost model, has impacted the total operating costs against the
comparative period in the prior year which only included two months
for Lesedi. The significant categories of direct costs include
salaries and wages of ZAR98.1 million (H1 FY2018: ZAR86.5 million),
mining costs of ZAR27.5 million (H1 FY 2018: ZAR21.9 million),
engineering and maintenance of ZAR26.0 million (H1 FY2018: ZAR21.7
million), reagents and milling costs of ZAR23.9 million (H1 FY2018:
ZAR16.7 million) and electricity of ZAR35.5 million (H1 FY2018:
ZAR26.4 million).
The depreciation and amortisation charges were incurred on
property plant and equipment at the SDO. The increase in cost from
ZAR36.5 million (H1 FY2018) to ZAR46.0 million was due to the
commissioning of the Project Echo MF2 modules, the PGM grade and
recovery optimisation process projects as well as Sylvania Lesedi
forming part of the Group for six months (H1 FY2018: two
months).
Group cash costs were ZAR8,194/ounce compared to ZAR7,043/ounce
in the corresponding period in the prior year, mainly due to the
total operational costs increasing, and the ounces remaining static
in comparison with the corresponding prior period. The cost per
ounce is expected to be reduced going forward as Project Echo and
optimisation project ounces come on stream and continued cost
saving initiatives at Lesedi in the second half of the financial
year. The all-in sustaining cost ("AISC") for the Group was
ZAR8,369/ounce and an all-in cost ("AIC") of ZAR9,819/ounce for the
period to 31 December 2018, of which ZAR1,400/ounce is attributable
to the capital expenditure on Project Echo and plant optimisation.
This compares to the AISC and AIC for 31 December 2017 of
ZAR7,127/ounce and ZAR8,515/ounce respectively.
General and administrative costs were $1.0 million for the six
months to 31 December 2018. These costs are incurred in USD, GBP
and ZAR and relate mainly to share registry costs, advisory and
public relations costs, consulting and legal fees and stock
exchange costs.
Interest is earned on surplus cash invested in South Africa at
an average interest rate of 7% per annum. A portion of cash is held
in ZAR to fund the remainder of Project Echo and any other
strategic production optimisation projects when identified.
Interest is paid on instalment sale agreements for the purchase of
movable plant and vehicles.
Income tax is paid in ZAR on taxable profits generated at the
South African operations. Income tax for the six months to 31
December 2018 was ZAR36.0 million compared to ZAR25.8 million for
31 December 2017. Deferred tax movements for the Group relate
mainly to the unredeemed capital expenditure and provisions.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the half year ended 31 December 31 December 31 December
2018 Notes 2018 2017
$ $
Net cash inflow from operating activities 3 11,925,688 7,141,597
Net cash outflow from investing activities 4 (3,439,432) (9,740,912)
Net cash outflow from financing activities 5 (1,476,214) (1,243,466)
------------ ------------
Net increase/(decrease) in cash and
cash equivalents 7,010,042 (3,842,781)
Effect of exchange fluctuations on
cash held (806,024) 1,165,703
Cash and cash equivalents beginning
of reporting period 14,016,407 15,321,117
Cash and cash equivalents, end of
reporting period 20,220,425 12,644,039
------------ ------------
3. Net cash inflow from operating activities includes a net
operating cash inflow of $14,081,494, net finance income of
$347,985 and taxation paid of $2,503,791.
4. Net cash outflow from investing activities includes payments
for property, plant and equipment of $3,740,596, exploration and
evaluation assets of $113,933, loan to joint arrangement $195,788,
cash inflow for rehabilitation insurance guarantee of $598,112 and
cash inflow of $12,773 proceeds on disposal of property, plant and
equipment.
5. The net cash outflow from financing activities consists of
the repayment of borrowings of $65,311, payments for share
transactions of $119,606 and dividends declared and paid of
$1,290,254.
Cash is held in USD and ZAR. As at 31 December 2018, the
Company's cash and cash equivalents balance was $20.2 million. Cash
generated from operations was $11.9 million for the reporting
period, which includes an outflow of $1.7 million for working
capital changes and $2.5 million paid for income tax. The Company
spent $3.9 million on capital expenditure and paid $1.3 million out
in dividends. An amount of $0.6 million was withdrawn from the
investment relating to the rehabilitation guarantees and was
transferred to an insurance facility for these guarantees. With the
majority of the cash generated and held in ZAR, the depreciation of
the ZAR against the USD decreased the reported cash balance since
the last reporting date of 30 June 2018 by $0.8 million.
The trade and other receivables have been split and invoiced
trade receivables and contract assets are shown separately on the
face of the Statement of Financial Position in line with the new
disclosure requirements of IFRS 15 Revenue from Contracts with
customers. Contract assets is the sales provision for the
concentrate delivered, but not yet invoiced to the refineries.
The Group capital expenditure for the six months to 31 December
2018 was $3.9 million. This spend comprises $2.0 million of Project
Echo, $0.5 million on specific production optimisation projects and
$1.4 million on stay in business capital.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 December 2018 31 December 2017
Notes $ $
Assets
Non-current assets
Equity-accounted investees 6 441,017 474,418
Other financial assets 7 - 1,143,988
Exploration and evaluation assets 57,050,976 58,376,482
Property, plant and equipment 34,762,216 40,748,694
Deferred tax asset 320,091 -
----------------- -----------------
Total non-current assets 92,574,300 100,743,582
----------------- -----------------
Current assets
Cash and cash equivalents 8 20,220,425 12,644,039
Trade and other receivables 9 8,832,139 23,378,244
Contract assets 10 14,082,828 -
Other financial assets 7 953,502 -
Inventories 11 1,777,299 1,865,263
Current tax asset 4,670 219,426
Total current assets 45,870,863 38,106,972
----------------- -----------------
Total assets 138,445,163 138,850,554
----------------- -----------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued) 31 December 2018 31 December
2017
Notes $ $
Equity and liabilities
Shareholders' equity
Issued capital 12 2,897,248 2,911,337
Reserves 13 64,972,265 74,874,672
Retained profits 46,697,114 35,437,010
----------------- -------------------
Total equity 114,566,627 113,223,019
----------------- -------------------
Non-current liabilities
Interest-bearing loans and borrowings 14 190,090 267,212
Provisions 15 3,620,057 3,884,511
Deferred tax liability 14,265,371 15,941,435
Total non-current liabilities 18,075,581 20,093,158
----------------- -------------------
Current liabilities
Trade and other payables 5,623,866 5,382,368
Interest-bearing loans and borrowings 14 151,794 150,828
Current tax liability 27,358 1,181
Total current liabilities 5,803,018 5,534,377
----------------- -------------------
Total liabilities 23,878,536 25,627,535
----------------- -------------------
Total liabilities and shareholders'
equity 138,445,163 138,850,554
----------------- -------------------
6. Equity-accounted investees consist of a 50% interest in a
joint arrangement research and development project, TS Consortium,
which operates a pilot pelletiser plant in South Africa.
7. Other financial assets mainly consist of the investment
linked to the rehabilitation insurance guarantee and the loan
receivable granted to TS Consortium from Sylvania South Africa
(Pty) Ltd, a South African subsidiary of the Group.
8. The majority of the cash and cash equivalents are held ZAR
and USD. ZAR denominated balances make up $13,975,489 (ZAR
201,271,511) of the total cash and cash equivalents balance.
9. Trade and other receivables consist mainly of amounts
invoiced for the sale of PGMs. Refer to note 10.
10. As per IFRS 15 adopted for the financial year starting 1
July 2018, contract assets are separated from trade
receivables.
11. Inventory held is stores and consumables for the SDO.
12. The total number of issued ordinary shares at 31 December
2018 is 289,724,772 Ordinary Shares of US$0.01 each (including
4,209,635 shares held in treasury). A total of 1,408,889 shares
were cancelled during the half year ending 31 December 2018.
13. Reserves include the share premium, foreign currency
translation reserve, which is used to record exchange differences
arising from the translation of financial statements of foreign
controlled entities, share-based payments reserve, treasury share
reserve, the non-controlling interests reserve and the equity
reserve.
14. Interest bearing loans and borrowings are secured instalment
sale agreements over various motor vehicles and plant and
equipment.
15. Provision is made for the present value of closure,
restoration and environmental rehabilitation costs in the financial
period when the related environmental disturbance occurs.
C. Mineral Asset Development and opencast mining projects
The Company has continued to upgrade the value of its mineral
asset development activities during the period, so as to be able to
continue to defend title. However, until an improvement in market
conditions occurs, these activities will incur very limited
spend.
Grasvally Chrome Project
The Mining Right granted in Q4 FY2018 has been executed and is
in the process of being registered in the Mining Titles Office.
Under the Mining Right, rehabilitation of the historical mining
area has commenced. A consulting firm has been appointed to prepare
financial models and are exploring ways to optimise value through
the possible sale of the Grasvally resource.
D. CORPORATE ACTIVITIES
Maiden Dividend Approval and Payment
As announced on 28 August 2018, the Directors of Sylvania
recommended the payment of a maiden cash dividend of 0.35 pence per
Ordinary Share of $0.01 in the Company. The shareholders approved
this recommendation at the Company's Annual General Meeting held on
23 November 2018 and the payment of the dividend was made on 30
November 2018.
The revised dividend policy, as referenced in the last annual
report, has been uploaded onto the Company website.
Share Buybacks and Cancellation of Shares
During the period and subsequent to the conclusion of the Share
Buyback programme which ran from 21 August 2017 to 24 August 2018,
the Company announced that it had cancelled the remainder of
892,257 $0.01 Ordinary Shares purchased under the programme, as
well as a further adjustment to shares held in treasury of 120,000
ordinary shares.
The Company further agreed to buy back 516,632 shares, held by a
person discharging managerial responsibilities (PDMR) as defined by
the Market Abuse Regulation, at 16.00 pence per Ordinary Share and
these were cancelled immediately.
Accordingly, at the end of the period the Company's issued share
capital was 289,724,772 Ordinary Shares, of which a total of
4,209,635 Ordinary Shares were held in Treasury. Therefore, the
total number of Ordinary Shares with voting rights in Sylvania was
285,515,137 Ordinary Shares.
CORPORATE INFORMATION
Registered and postal Sylvania Platinum Limited
address:
Clarendon House
2 Church Street
Hamilton HM 11
Bermuda
SA Operations postal PO Box 976
address:
Florida Hills, 1716
South Africa
Sylvania Website: www.sylvaniaplatinum.com
CONTACT DETAILS
For further information, please
contact:
Terence McConnachie (Chief Executive
Officer) +44 777 533 7175
Nominated Advisor and Broker
Liberum Capital Limited +44 (0) 20 3100 2000
Richard Crawley / Chris Britton
Communications
Alma PR Limited +44 (0) 7580 216 203
Josh Royston / Helena Bogle
This announcement is released by Sylvania Platinum Limited and
contains inside information for the purposes of Article 7 of the
Market Abuse Regulation (EU) 596/2014 ("MAR"), and is disclosed in
accordance with the Company's obligations under Article 17 of
MAR.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of the Company by Terence McConnachie.
ANNEXURE
GLOSSARY OF TERMS FY2018
The following definitions apply throughout the period:
4E PGM ounces include the precious metal elements Platinum,
4E PGMs Palladium, Rhodium and Gold
6E ounces include the 4E elements plus additional Iridium
6E PGMs and Ruthenium
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AGM Annual General Meeting
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AIM Alternative Investment Market of the London Stock Exchange
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All-in sustaining Production costs plus all costs relating to sustaining current
cost production and sustaining capital expenditure.
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All-in sustaining cost plus non-sustaining and expansion capital
All-in cost expenditure
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ASX Australian Securities Exchange
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Bonus Shares Sylvania Platinum Limited Bonus Share Award Plan
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CGU Cash generating unit
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Fresh chrome tails from current operating host mines processing
Current risings operations
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DMR Department of Mineral Resources
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EBITDA Earnings before interest, tax, depreciation and amortisation
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EA Environmental Authorisation
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EIA Environmental Impact Assessment
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EIR Effective interest rate
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EMPR Environmental Management Programme Report
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GBP Great British Pound
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IASB International Accounting Standards Board
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IFRIC International Financial Reporting Interpretation Committee
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IFRS International Financial Reporting Standards
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I&APs Interested and Affected Parties
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Ironveld Ironveld Plc
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IRR Internal Rate of Return
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JV Joint venture
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Limpopo Department of Economic Development, Environment and
LEDET Tourism
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Phoenix Platinum Mining Proprietary Limited, renamed Sylvania
Lesedi Lesedi
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LSE London Stock Exchange
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LTI Lost time injury
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MF2 Milling and flotation technology
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MPRDA Mineral and Petroleum Resources Development Act
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MRA Mining Right Application
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MTO Mining Titles Office
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NOMR New Order Mining Right
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NWA National Water Act 36 of 1998
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Option Plan Sylvania Platinum Limited Share Option Plan
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Platinum group metals comprising mainly platinum, palladium,
PGM rhodium and gold
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PAR Pan African Resources Plc
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Phoenix Platinum Mining Proprietary Limited, renamed Sylvania
Phoenix Lesedi
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Pipeline ounces 6E ounces delivered but not invoiced
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Revenue recognised for ounces delivered, but not yet invoiced
Pipeline revenue based on contractual timelines
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Pipeline sales Adjustments to pipeline revenues based on the basket price
adjustment for the period between delivery and invoicing
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Programme Sylvania Platinum Share Buyback Programme
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Project Echo Secondary PGM Milling and Flotation (MF2) program announced
in FY2017 to design and install additional new additional
fine grinding mills and flotation circuits at Millsell, Doornbosch,
Tweefontein and Mooinooi.
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Revenue (by
products) Revenue earned on Ruthenium, Iridium, Nickel and Copper
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ROM Run of mine
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SDO Sylvania dump operations
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Shares Common shares
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Sylvania Sylvania Platinum Limited, a company incorporated in Bermuda
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USD United States Dollar
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WULA Water Use Licence Application
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UK United Kingdom of Great Britain and Northern Ireland
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ZAR South African Rand
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END
IR GLGDDXSBBGCI
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