South Africa-based Sylvania Resources Limited has today (9th October) issued an update on platinum group metals production (PGM) in its Sylvania Dump Operations (SDO) division.

The company has reported that its Millsell and Steelpoort plants reached full production design capacity in the quarter up to 30th June, which they have maintained in the latest quarter.

In addition, PGM production from the SDOs was recorded as 5,854 oz in the first quarter of the 2009 fiscal year, compared to 5,753 oz for the fourth quarter of the last fiscal year.

Sylvania also confirmed that it expects production to stabilise at approximately 6,500 oz per quarter ahead of the commissioning of new plants at Lannex and Mooinooi, which will each be capable of offering 70,000 tpm total plant feed.

Chief Executive Terry McConnachie said: "While the recent decline in world PGM prices has negatively impacted Sylvania's profitability in the quarter, we continue to focus on factors within our control and I am pleased that we have continued to deliver against our production and cost targets while progressing the development of our new plants, which will add significantly to our production capacity."

The company estimates that its average basket price received during the first fiscal quarter of 2009 was around $1,499 per ounce, a fall of 44 per cent from the $2,692 per ounce recorded in the previous quarter.



Source:

TRADING UPDATE (09/10/08)
http://www.sylvaniaresources.com/pdf-SLVTradingUpdate091008.pdf