Sylvania Platinum has released its half-year financial statement for the end of 2021.
The Platinum Group Metal (PGM) producer reported net revenue generated for its HY2 period totalling $69.1 million, against a significantly higher HY1 2021 revenue of $84.9 million.
The company had experienced a few reported setbacks, including the shutdown of its Lesedi operations through Q1 which were further exacerbated by water shortages which continued into Q2.
The plant recorded alternative water supplies following the end of Q2, and added that it had sourced a new water supply via additionally installed boreholes. It also reported the commissioning of a newly constructed tailings dam facility that is set to prevent additional water shortages.
The PGM company also suffered a lower PGM feed grade of Mooinooi ROM material in addition to its Lesedi operation setbacks.
However, the half-year financial statement affirmed a return to shareholders of $14.6 million, which amounted to 4p per Ordinary Share.
Additionally, Sylvania is set to release a Windfall Dividend of 2.25p per Ordinary Share on April 8 2022.
“Through the continuous efforts of our employees and operations that drive sustainable production, and assisted by the strong PGM basket price, the Company continues to generate sufficient cash to fund both expansion requirements and to return value to shareholders,” said Sylvania’s CEO Jaco Prinsloo.
“As a result, I am pleased to announce that, in addition to the annual dividend paid during the period, the Board has approved the payment of a second Windfall Dividend of 2.25p per Ordinary Share, payable in early April 2022.
“As with the first Windfall Dividend paid in April 2021, this dividend payment is based on excess cashflow generated from PGM prices achieved above long-term broker consensus prices for these metals for the 2021 calendar year.
“Actual achieved production, metal prices, ZAR exchange rate, as well as our share of mineral royalties, corporate and dividend withholding taxes have been taken into account in the determination.”
Sylvania Platinum currently holds multiple mineral asset and opencast mining operations including shallow mining projects Volspruit and Grasvalley on its northern limb, alongside four “hot spot” PGM targets located to the extreme north of its northern Bushveld Igneous Complex.