StockMarketWire.com - Platinum producer Sylvania Platinum said its first-quarter profit had fallen amid a drop in platinum prices.

Net profit for the three months through September fell to $8.6 million, down from $14.7 million in the previous quarter, as revenue fell to $29.8 million, down from $48.4 million.

Output fell to 15,771 4E PGM ounces, down from 16,289 ounces, following a temporary production suspension at Lesedi.

'The 29% reduction in PGM basket price had a significant impact on the revenue for the quarter and also resulted in a substantial sales adjustment for the previous quarter's production that was forecast at higher metal prices,' chief executive Jaco Prinsloo said.

'The global computer chip shortage that currently impacts new motor vehicle production and autocatalyst demand is one of the most significant factors driving the basket price movement.'

'Most analysts only forecast this issue to be resolved by late 2021 or early 2022.'

'PGM prices are however, still significantly higher than historical levels and by focusing on the areas that management can control, I am sure that we will continue to generate value to shareholders.'


Story provided by StockMarketWire.com