Published: 03 February 2014

Zimplats revenue decreased by 13% from the previous quarter impacted by lower sales volumes and a reduction in metal prices. Consequently, an operating profit of $20.6 million was realised, 48% lower than the previous quarter.

According to the group's quarterly report, revenue was at $125.95 million from $145.53 million  but 52% higher than the comparable year ago period of $82.99 million.

Tonnes mined increased by 7% from the prior quarter mainly due to the introduction of an additional production fleet at Mupfuti Mine and production improvements at Bimha Mine which was affected by the shear zone (Mutambara Shear) in the previous quarter.

Short-term contingency plans have been identified and implemented at Bimha Mine to manage the shear zone while work on long-term stabilisation measure s is on-going.

Milling and metal in concentrate production were impacted by the shutdown of the Ngezi concentrator ball mill for relining and decreased by 2% from the previous quarter.

An explosion at the smelter on 17 December 2013 resulted in a tap block blow out and eruption of molten material from the furnace.

Repairs were completed and the furnace was back on full power by 24 December 2013. As a consequence metal in converter matte was 6% lower than the previous quarter. Zimplats says lost production should be recovered by end of the financial year. 4E recovery remained largely unchanged at 81.7%

Cash cost per 4E ounce was 1% higher than the previous quarter, reflecting the impact of lower production volumes (metal in converter matte). The company's local spend (excluding payments to government and related institutions) increased by 43% to $60 million.

Total payments to government in direct and indirect taxes decreased by 9% from $32 million to $29 million compared to previous quarter. This was mainly due to the lower revenues recorded in the current quarter.

Expansion
Development of the new underground mine (Mupfuti) remains on schedule to reach design production in early 2015. There are now three production fleets after the introduction of an additional fleet this quarter
- businessdaily

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