Interim Results

RNS Number : 2964Z

Sylvania Platinum Limited

14 March 2012

SYLVANIA PLATINUM LIMITED

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

(ASX: SLP, 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 2011.

For the full set of results please see the following link:

http://www.rns-pdf.londonstockexchange.com/rns/2964Z_-2012-3-13.pdf

Financial Highlights

· Sylvania dump operations (SDO) turnover up 21% in US dollar terms on H1 2010

· Gross profit of US$7,316,809

· Net revenues of US$23,646,602 (US$19,500,920 H1'10)

o 21% increase on H1'10 period

· EBITDA of R68,532 million (R36,956 million in H1'10)

· Net basket price US$908/oz (US$1,118/oz in H1'10)

Operational Highlights

· PGM ounce production up 36% to 25,179 ounces (18,530 ounces in H1'10)

o Plant feed production of 779,653 tonnes (658,687 tonnes in H1'10)

o PGM Plant feed tons 365,982 tonnes (299,186 tonnes in H1'10)

· New Mooinooi expansion project commissioned within budget

· Construction of the Tweefontein plant commenced in December 2011

Corporate Highlights

· Appointment of Mr Roger Williams as Non-Executive Director

Post-Period Highlights

· Disposal of Bushveld Magnetite Iron Ore Assets

o Mercury Recycling Group Plc to acquire assets for approx. £13.7 million

Commenting today, Sylvania Platinum CEO Terry McConnachie, said: "I am pleased with the progress made at our tailings dump operations, in particular, the production levels achieved at the Doornbosch and Steelpoort plants and improvements at our other three SDO plants. Our focus remains on our core strategy of producing low cost PGMs. As a result, we have embarked on a disposal process of our iron ore assets. Progress has been made on this with a legally binding agreement with Mercury Recycling Group, as announced on 7^th March 2012."

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

Consolidated Statement of Comprehensive Income

for the half year ended 31 December 2011

		31 December 2011	31 December 2010
	Note	$	$

Revenue		23,646,602	19,500,920
Cost of sales		(16,329,793)	(12,907,570)
Gross profit		7,316,809	6,593,350
Other income		46,925	13,680
(Losses)/ gains on sale of property, plant and equipment		(6,842)	1,465
Foreign exchange loss		(11,506)	(7,906)
Impairment of loan		-	(618,517)
Impairment of available-for-sale financial assets		(536,150)	-
Loss on revaluation of financial assets at fair value through profit and loss		(20,642)	(9,448)
Share based payment expense		-	(763,226)
Share of equity accounted jointly controlled entities net (loss)/ profit		(463,908)	127,454
General and administrative costs		(5,156,280)	(6,675,070)
Finance revenue		581,170	553,828
Finance costs		(37,896)	(37,919)
Profit/ (loss) before income tax expense		1,711,680	(822,309)

Income tax expense		(1,264,473)	(1,638,636)
Profit/ (loss) for the period		447,207	(2,460,945)

Other comprehensive (loss)/ income
Unrealised gains reserve		195,114	85,076
Foreign currency translation		(19,135,231)	16,568,731
Other comprehensive (loss)/ income		(18,940,117)	16,653,807
Total comprehensive (loss)/ income for the period		(18,492,910)	14,192,862

Profit/ (loss) attributable to:
Owners of the parent		447,207	(2,974,811)
Non-controlling interest		-	513,866
		447,207	(2,460,945)

Total comprehensive (loss)/ profit attributable to:
Owners of the parent		(18,492,910)	14,192,862
Non-controlling interest		-	-
		(18,492,910)	14,192,862

Profit/ (loss) per share for loss attributable to the ordinary equity holders of the Company:		Cents	Cents

Basic earnings/ (loss) per share		0.15	(1.16)
Diluted earnings/ (loss) per share		0.15	(1.16)

Consolidated Statement of Financial Position

as at 31 December 2011

		31 December 2011	31 December 2010	30 June 2011
	Note	$	$	$

ASSETS
Non-Current Assets
Equity accounted investments in joint ventures		2,087,667	3,095,665	2,814,813
Other financial assets		133,811	475,834	500,548
Exploration and evaluation assets		73,965,395	70,665,299	76,123,444
Property, plant and equipment		63,395,641	74,292,918	72,843,970
Total non-current assets		139,582,514	148,529,716	152,282,775

Current Assets
Cash and cash equivalents		19,932,568	22,081,178	23,497,092
Trade and other receivables		16,032,086	17,110,900	20,141,830
Inventories		517,922	555,221	628,065
Current tax asset		2,243,234	2,785,642	2,591,580
Total current assets		38,725,810	42,532,941	46,858,567
Total assets		178,308,324	191,062,657	199,141,342

EQUITY
Equity and liabilities
Shareholders' equity
Issued capital		29,639,275	191,804,744	29,639,275
Reserves		95,661,960	(11,113,221)	114,602,077
Retained profits		20,897,667	(23,035,820)	20,450,460
Equity attributable to the owners of the parent		146,198,902	157,655,703	164,691,812
Non-controlling interest		-	-	-
Total equity		146,198,902	157,655,703	164,691,812

LIABILITIES
Non-current liabilities
Interest bearing loans and borrowings		209,478	391,292	298,156
Provisions		832,501	932,058	974,832
Deferred tax liability		26,241,338	25,129,218	27,448,194
Total non-current liabilities		27,283,317	26,452,568	28,721,182

Current liabilities
Trade and other payables		4,692,123	6,732,586	5,550,646
Interest bearing loans and borrowings		124,584	210,290	166,522
Current tax liability		9,398	11,510	11,180
Total current liabilities		4,826,105	6,954,386	5,728,348
Total liabilities		32,109,422	33,406,954	34,449,530
Total liabilities and shareholders' equity		178,308,324	191,062,657	199,141,342

Consolidated Statement of Cash Flows

for the half year ended 31 December 2011

	31 December 2011	31 December 2010
	$	$
Cash flows from operating activities

Receipts from customers	24,650,825	16,128,726
Payments to suppliers and employees	(17,580,180)	(14,823,602)
Finance income	581,845	590,123
Finance costs	(37,896)	(29,275)
Exploration expenditure written off	(11,153)	(11,709)
Other revenue	-	104,070
Taxation paid	(176,825)	(192,570)
Net cash inflow from operating activities	7,426,616	1,765,763

Cash flows from investing activities

Purchase of plant and equipment	(6,196,747)	(2,359,635)
Proceeds from sale of property, plant and equipment	13,816	4,357
Payments for capitalised exploration and evaluation	(2,012,549)	(427,557)
Payments to equity accounted investments	(182,613)	-
Net cash outflow from investing activities	(8,378,093)	(2,782,835)

Cash flows from financing activities

Proceeds from borrowings	-	302,139
Repayment of borrowings	(60,725)	-
Repayment of loan from related parties	-	(137,972)
Proceeds from loans from related parties	2,157	-
Capital transaction costs	-	(103,241)
Net cash (outflow) / inflow from financing activities	(58,568)	60,926

Net decrease in cash and cash equivalents	(1,010,045)	(956,146)

Cash and cash equivalents at the beginning of reporting period	23,497,092	20,107,830

Effect of exchange fluctuations on cash held	(2,554,479)	2,929,494
Cash and cash equivalents at the end of the reporting period	19,932,568	22,081,178