Zimplats' revenue rise 9%, production up 17%

Published: 02 August 2017

Zimbabwe Platinum Mines (Zimplats) increased its revenue by 9% from the previous quarter mainly due to the 16% increase in 4E metal sales volumes, which was partly offset by a general decrease in metal prices.

Net operating costs increased by 28% in comparison to the previous quarter largely due to the 16% increase in sales volumes (4E). The net operating expenses for the previous quarter benefitted from the US$8 million recognised in relation to the previously written off Reserve Bank of Zimbabwe (RBZ) debt.

Royalties were 9% higher than the previous quarter, in line with the increase in revenue.

Cash costs per 4E ounce increased marginally from the previous quarter.

Amortisation and depreciation cost per 4E ounce improved by 17% from the previous quarter in line with the increase in metal production.

Gross revenue per 4E ounce decreased by 5% from the previous quarter due to lower metal prices.

Local spend in Zimbabwe (excluding payments to government and related institutions) increased to US$114 million from the US$51 million recorded in the previous quarter.

Total payments to government in direct and indirect taxes increased to US$51 million from the US$10 million reported in the previous quarter.

The average platinum, palladium, rhodium, gold and nickel prices realised were as follows

The redevelopment of Bimha Mine remains on schedule to reach full production in April 2018. A total of US$36 million had been spent on the project as at 30 June 2017 against an approved total project budget of US$92 million.

The development of Mupani Mine (the replacement mine for Ngwarati and Rukodzi mines) is on schedule, targeting ore contact by May 2020 and full production in August 2025. A total of US$11 million had been spent on the project as at 30 June 2017 against an approved total project budget of US$264 million.
- Business Daily

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