Half Yearly Report

RNS Number : 9761A

Sylvania Platinum Limited

27 March 2013

 



SYLVANIA PLATINUM LIMITED

("Sylvania Platinum", "Sylvania" or the "Company")

(AIM: SLP)

Interim Results

Sylvania Platinum, the low cost Platinum Group Metal processor and developer, today announces its audited interim results for the six months ended 31 December 2012. 

For the full set of results, please see the following link http://www.rns-pdf.londonstockexchange.com/rns/9761A_-2013-3-27.pdf.

Financial and operational

·      Sylvania Platinum Group Earnings Before Interest, Tax, Depreciation and Amortisation ("EBITDA") (Including Iron ore disposal) $10,918,477

o  Sylvania dump operations ("SDO") maintain a positive EBITDA of $3,830,200 for the half year ended 31 December 2012 despite extensive industrial action

·      Chrome Tailings Retreatment Plant placed on care and maintenance during the reporting period

·      Tweefontein produced first ounces in September 2012

Corporate

·      Disposal of iron ore assets completed and $10 million dividend in specie distributed to Sylvania shareholders

Post period

·      Appointment of Mr Stuart Murray as Chairman of Sylvania, effective 1 April 2013

·      New dividend policy announced

Commenting today, Sylvania Platinum CEO Terry McConnachie, said: "2012 has been a challenging year for miners due to extensive industrial action not least those operating in the platinum industry in South Africa. Despite this I am extremely encouraged by the progress Sylvania has made during this period. The Company disposed of its iron ore asset and the proceeds were distributed to the shareholders in full. We have maintained our positive earnings of $3.8 million in SDO for the half year and continued to grow with Tweefontein, our seventh plant producing its first ounces in September 2012.  In addition to this, we have managed our existing capital well and implemented cost cutting measures across the group to focus on driving profitability.

"Following the departure of Richard Rossiter, we are delighted to have bolstered our platinum expertise with the arrival of Stuart Murray as chairman, who brings with him a wealth of experience in this area and we look forward to him starting in April.

"Post period we have announced a new dividend policy which is in line with our strategy to move away from intensive capital investment to focus on creating shareholder value and returning surplus cash to shareholders. The first of these payments is targeted for December 2013."

The following financial figures are supplied for comparison purposes and we refer you to the full set of results as per the link above (which are audited figures).

Consolidated Statement of Comprehensive Income

for the half year ended 31 December 2012

		31 December 2012	31 December 2011
		$	$
Revenue		19,181,371	23,646,602
Cost of sales		(19,388,949)	(16,329,793)
Gross (loss)/profit		(207,578)	7,316,809
Other income		20,188	46,925
Profit on disposal		9,999,314	-
Losses on sale of property, plant and equipment		(1,788)	(6,842)
Foreign exchange loss		(6,898)	(11,506)
Impairment of available-for-sale financial assets		(18,031)	(536,150)
Loss on revaluation of financial assets at fair value through profit and loss		8,310	(20,642)
Share of equity accounted jointly controlled entities net loss		(123,909)	(463,908)
General and administrative costs		(2,900,803)	(5,156,280)
Finance revenue		205,320	581,170
Finance costs		(70,938)	(37,896)
Profit before income tax expense1		6,903,187	1,711,680
Income tax expense		(34,581)	(1,264,473)
Profit for the period		6,868,606	447,207
Other comprehensive (loss)/ income
Items that may be reclassified subsequently to profit and loss:
Unrealised gains reserve		-	195,114
Foreign currency translation		(1,347,593)	(19,135,231)
Other comprehensive (loss)/ income		(1,347,593)	(18,940,117)
Total comprehensive  income/(loss) for the period		5,521,013	(18,492,910)
Profit attributable to:
Owners of the parent		6,868,606	447,207
Non-controlling interest		-	-
		6,868,606	447,207
Total comprehensive profit/(loss) attributable to:
Owners of the parent		5,521,013	(18,492,910)
Non-controlling interest		-	-
		5,21,013	(18,492,910)
Profit per share attributable to the ordinary equity holders of the Company:		Cents	Cents
Basic earnings per share		2.29	0.15
Diluted earnings per share		2.19	0.15

¹Reconciliation of Group EBITDA:

	31 December 2012	31 December 2011
	$	$
Profit before income tax expense	6,903,187	1,711,680
Add: Depreciation	4,149,672	3,868,346
Add: Finance costs	70,938	37,896
Deduct: Finance revenue	(205,320)	(581,170)
Earnings before interest, tax, depreciation and amortisation	10,918,477	5,036,752

Consolidated Statement of Financial Position

as at 31 December 2012

		31 December 2012	31 December 2011	30 June 2012
		$	$	$
ASSETS
Non-Current Assets
Equity accounted investments in joint ventures		2,065,322	2,087,667	2,048,635
Other financial assets		1,635,670	133,811	93,235
Exploration and evaluation assets		76,698,479	73,965,395	75,602,341
Property, plant and equipment		69,041,891	63,395,641	68,492,697
Total non-current assets		149,441,362	139,582,514	146,236,908
Current Assets
Cash and cash equivalents		9,515,793	19,932,568	15,696,899
Trade and other receivables		12,591,677	16,032,086	12,942,343
Inventories		565,298	517,922	596,719
Current tax asset		303,836	2,243,234	403,527
Assets held for sale		-	-	1,343,889
Total current assets		22,976,604	38,725,810	30,983,377
Total assets		172,417,966	178,308,324	177,220,285
EQUITY AND LIABILITIES
Shareholders' equity
Issued capital		29,542,290	29,639,275	29,557,290
Reserves		87,256,943	95,661,960	98,204,246
Retained profits		23,347,263	20,897,667	16,478,657
Equity attributable to the owners of the parent		140,146,496	146,198,902	144,240,193
Non-controlling interest		-	-	-
Total equity		140,146,496	146,198,902	144,240,193
Non-current liabilities
Interest bearing loans and borrowings		268,064	209,478	256,063
Provisions		1,267,521	832,501	1,257,235
Deferred tax liability		22,814,069	26,241,338	23,623,156
Total non-current liabilities		24,349,654	27,283,317	25,136,454
Current liabilities
Trade and other payables		7,729,952	4,692,123	7,623,192
Interest bearing loans and borrowings		182,846	124,584	174,654
Current tax liability		9,018	9,398	9,317
Liabilities directly associated with the assets classified as held for sale		-	-	36,475
Total current liabilities		7,921,816	4,826,105	7,843,638
Total liabilities		32,271,470	32,109,422	32,980,092
Total liabilities and shareholders' equity		172,417,966	178,308,324	177,220,285

Consolidated Statement of Cash Flows

for the half year ended 31 December 2012

		31 December 2012	31 December 2011
		$	$
Cash flows from operating activities
Receipts from customers		18,466,878	24,650,825
Payments to suppliers and employees		(16,540,619)	(17,591,180)
Finance income		212,004	581,845
Finance costs		(20,207)	(37,896)
Taxation received/(paid)		52,494	(176,825)
Net cash inflow from operating activities		2,170,550	7,426,616
Cash flows from investing activities
Purchase of plant and equipment		(6,823,282)	(6,196,747)
Proceeds from sale of property, plant and equipment		-	13,816
Payments for exploration and evaluation		(608,128)	(2,012,549)
Payments to equity accounted associate		(206,500)	(182,613)
Net cash outflow from investing activities		(7,637,910)	(8,378,093)
Cash flows from financing activities
Repayment of borrowings		(21,217)	(60,725)
(Payments)/Proceeds from loans from related parties		(398,578)	2,157
Net cash outflow from financing activities		(419,795)	(58,568)
Net decrease in cash and cash equivalents		(5,887,155)	(1,010,045)
Cash and cash equivalents at the beginning of reporting period		15,716,680	23,497,092
Effect of exchange fluctuations on cash held		(313,732)	(2,554,479)
Cash and cash equivalents at the end of the reporting period		9,515,793	19,932,568

CORPORATE INFORMATION

Registered office:     Sylvania Platinum Limited

                                 Clarendon House

                                 2 Church Street

                                 Hamilton HM11

Postal address:         PO Box 524

                                 Wembley WA 6913

                                 Australia

CONTACT DETAILS

For further information, please contact:

Terence McConnachie (CEO)

Nigel Trevarthen (Deputy CEO)

[phone]

Nominated Adviser and Broker

Liberum Capital Limited

Michael Rawlinson/Tom Fyson/Christopher

Kololian

[phone]

Communications

Newgate Threadneedle

Graham Herring/Beth Harris

[phone]

Sylvania Website: www.sylvaniaplatinum.com

 

END

 

 

IR EDLBLXXFFBBQ