Sylvania Resources Brings in Black Empowerment Group Which Will Pay Its Share
By Rob Davies
Sylvania Resources has chosen an unconventional route to making its living that tests the cognitive abilities of simple journalists. In essence it is treating old tailings from mines on the Bushveld Complex to extract chrome and platinum. The grand plan calls for the construction of six chrome plants and four platinum plants. Minesite was able to catch up with chief executive Terry McConnachie while he was touring a factory in Durban and get a progress report following some recent developments.
And....
Valuing Sylvania is a tricky operation because this part of the company lacks a resource to use as asset backing. However, it has an interest in the Everest North platinum project where an inferred resource of 4.82 million tonnes grading 5.87 grammes per tonne combined PGMs and gold has been outlined for a contained resource of 796,000 ounces of PGMs at its Vygenhoek site. Moreover, it is getting some PGM production from the CTRP at Millsell; - 466 ounces in the December quarter. At £60million Sylvania is not small fry, but as a way of playing PGMs in the ground and with some production, and forecasts of increasing output, it is a fairly low risk way of getting that exposure.
SLV Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
