Sylvania Platinum Ltd (LON: SLP) share price fell by 14.77% after reporting lower revenues and profits from its Q1 operations than its Q4 2021 report.
The platinum group metals (PGM) miner generated $29.8 million in revenues during the three months ended September 30, 2021, a significant decline compared to the $48.4 million recorded in Q4 2021, ended June 30, 2021.
The miner attributed its lower revenues to a 29% drop in the average prices of platinum group metals and lower overall production after achieving 15,771 4E PGM ounces in the current quarter compared to the 16,289 ounces produced in Q4 2021.
Sylvania Platinum registered pretax profits of $13.6 million compared to $28.7 million in the previous quarter. The company’s net profits came in at $8.6 million compared to $14.7 million in Q4 2021.
The company has cash at the hand of $132.7 million compared to $106.1 million in the previous quarter.
The firm told investors that the suspension of operations at Lesedi affected its overall production figures, but its Tweefontein project outperformed, making up for Lesedi’s absence.
Sylvania’s dump operations (SDO) continued beating initial estimates leading to impressive production numbers.
Jaco Prinsloo, Sylvania Platinum’s CEO, said: “I am delighted by Tweefontein achieving 2,209 ounces during September 2021, which is a new monthly record on both a plant level and across all operations and contributed towards a solid quarterly performance by the operations to achieve 15,771 ounces for the quarter, despite the interruption at Lesedi.”
Adding:
“The 29% reduction in PGM basket price had a significant impact on the revenue for the quarter and also resulted in a substantial sales adjustment for the previous quarter's production that was forecast at higher metal prices.”
The company further explained that the global computer chip shortage hurt new motor car production, its primary market. However, the company hopes that the chip shortage will be resolved by the end of the year or early 2022.
Sylvania Platinum share price.
Sylvania Platinum share price plunged 14.77% to trade at 92.90, falling from Monday’s closing price of 109.00p.
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