SLV - Sylvania Resources

[mildew79]

wow. this one slipped under my scanning software (not sure how) until last night when i picked it up on a volume scan.

any fundamentalists want to break this one down?? ill have a go myself a little later if no one is interested.

a quick cut and paste from there web page:

Sylvania Resources Limited is listed on the Australian Stock Exchange (ASX:SLV) and on the Alternative Investment Market of the London Stock Exchange (LSE:SLV.L).

Sylvania is currently involved in three PGM projects on the Bushveld Igneous Complex of South Africa. The first of these is fully operational, the second is at an advanced stage of development and the third is at the feasibility study stage.

The first project is a 25% interest in the CTRP consortium which is led by Aquarius Platinum Limited. The consortium constructed a purpose built plant at the Kroondal Mine to extract platinum group metals (platinum, palladium, rhodium and gold) from the tailings of the nearby Xstrata and LanXess chrome mines. The CTRP plant is managed by Aquarius Platinum Limited and has been in production since January 2005.

The second project involves the recovery of chromite and PGM from the tailings of Samancor’s chrome mines. Sylvania’s first chrome recovery plant, located at the Samancor Millsell Mine, has been producing metallurgical grade chromite concentrates since August 2006. A flotation plant to recover PGM from the tailings from this chrome plant is presently under construction at Millsell. Additional chromite and PGM recovery plants are under construction at Samancor’s Steelpoort Chrome Mine.

The Everest North UG2 project, is located on the farm Vygenhoek, on the Eastern Limb of the Bushveld Complex. Sylvania is conducting exploration drilling as the initial part of a feasibility study regarding the development of mining and processing facilities for UG2 ore.

anyhow, could be a dud at this stage but money has certainly been made by many

 

[ormond]

Thought this co. would get a bit more of a mention considering the rise of platinum lately.

The company expects to produce more than 70,000 ounces of PGMs in 2009/10 when the two other plants under construction come on line.

Cash costs are $200-$300 per oz produced and nett PGM price received of $1544. A margin of over $1200 per ounce produced.

Platinum spot prices have recently gone thought $2000 per oz, thus increasing the profitability of Sylvania.

70,000 oz at a net $1200 per oz produced comes to $84 million in profits for the year.

Shold see some news flow soon with the jv with AQP.

Any one else holding this one?

 

[ormond]

Just to add an after market close announcement.

Sylvania Resources Limited ('Sylvania' or the 'Company')
(ASX/AIM: SLV)


Sylvania to treat all run of mine fines from three new Samancor sites


Addendum to the Samancor Chrome Service and Supply Agreement signed to treat all run of mine ("ROM") fines from Samancor Chrome's Broken Hill, Spitzkop and Buffelsfontein East sites
- 6,000 oz/pa initial increase in PGM production for life of mine


Plant extensions to treat ROM fines at Lannex (serving Broken Hill and Spitzkop) and Mooinooi (serving Buffelsfontein East) planned at total capex of approximately R110 million
- 50,000 tpm chrome beneficiation plant acquired from Samancor Chrome


ROM fines treatment costs covered by receipt of PGE-bearing silicates in return for washing Samancor Chrome's chrome ROM
Sylvania Resources Limited announced today that it has signed a further amendment to the Service and Supply Agreement with Samancor Chrome Limited (" Samancor Chrome") to treat ROM fines from three new sites at Samancor Chrome's current South African mining operations.

Attributable PGM production will increase by approximately 6 000 oz/pa, or 8% of current production, in the short term, increasing to approximately 33% of production in five to six years as current dumps are depleted.

For a graph showing the impact on Sylvania's production profile of the new ROM agreement with Samancor, please follow the following web link:

http://www.rns-pdf.londonstockexchange.com/rns/8267o_-2008-2-27.pdf

The contract amendment agreed with Samancor Chrome provides that an estimated 300,000 t of ROM fines a year will be made available to Sylvania for treatment. These ROM fines have an average grade of 1.4 g/t. Chrome ore recovered from ROM fines treatment will be returned to Samancor Chrome at a nominal charge.

Plans for optimal utilisation of Sylvania's existing plant infrastructure on Samancor Chrome properties for the treatment of the ROM fines are expected to be finalised within the next two months.

First production of PGMs from ROM fines retreatment is expected in the fourth quarter of 2008, ramping up to more than 200 oz/pm towards the end of the first quarter of 2009.

Plant extensions to treat ROM fines at Lannex (serving Broken Hill and Spitzkop) and Mooinooi (serving Buffelsfontein East) are planned at a total capital cost of approximately R110 million. This will be funded from available cash resources.

An additional chrome treatment plant with a capacity of 50,000 tpm has been purchased from Samancor Chrome, at a market-related price reflecting a saving on the construction of a new plant.

Sylvania CEO Terry McConnachie said: "We are very pleased to be awarded this additional contract to treat ROM fines from Samancor Chrome's Broken Hill, Spitzkop and Buffelsfontein East mining operations for PGMs and chrome.

"This further consolidates our symbiotic relationship with Samancor Chrome in terms of which it benefits from very cheap chrome and we benefit from the PGMs extracted. It also marks a substantial step forward for Sylvania in its growth as a specialised, low-cost, high-margin producer of PGMs, primarily from tailings located throughout South Africa's prime, PGM- and chrome-rich Bushveld Complex."

As consideration for the facilitation of this agreement, Sylvania will issue to Portpatrick Limited (or its nominee) three million fully paid ordinary shares in Sylvania pursuant to the Co-operation Agreement dated 9 December 2005.

For further information please contact:

In South Africa

Terence McConnachie


CEO


Sylvania Resources Limited

(+27 11) 803 7214

In Australia

Mike Langoulant

Company Secretary

Sylvania Resources Limited

 

[refined silver]

Any one else holding this one?

Will probably be a few more holding it soon, since it is making off-mkt takeover bids for both:

1. SA Metals Ltd (SXM) formerly Pan Palladium Ltd (PPD) which holds 5m oz Pd resources in South Africa (Bushveld)

2. Great Australian Resources (GAR).