Sylvania Platinum shares dip following operational update

published 12 March 2013

Shares in AIM-listed Sylvania Platinum dipped on Tuesday morning after the company issued an operational update disclosing the estimated production loss following temporary stoppages earlier this year.

Following the temporary stoppages in February and early March, the company said that the estimated production loss was approximately 900 ounces.

The company reported that it "is currently reviewing strategies to make up these losses."

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During the period, the company reported that other operations on the Eastern limb had continued with production as planned.

Background: Underground accident at a mine in FebruaryThe stoppages followed an incident in February. On February 10th, the company reported that an underground accident had occurred at Samancor's Mooinooi host mine.

Following an accident investigation, the Department of Mineral Resources (DMR) ordered the stoppage of all underground operations at Mooinooi the same day and therefore also stopping feed to Sylvania's Mooinooi run-of-mine plant.

Underground operations resumed on February 18th, the company said, and during this period dump material was still being fed into Sylvania's run-of-mine plant.

Following a separate underground incident at Samancor's Millsell host mine on February 27th, the DMR ordered the immediate cessation of all underground work at the Millsell mine which had the effect of stopping all current arisings to Sylvania's Millsell plant.

Sylvania said it worked closely with all relevant parties following the incidents and the work stoppage was lifted on March 8th.

Shares in Sylvania Platinum were down 10.48% to 11.75p at 11:47 on Tuesday.

Sylvania Platinum is an expanding producer of the platinum group metals. These include platinum, rhodium and palladium.

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