Revenue and production surge at Zimplats

Published: 31 October 2013

Zimplats saw its first-quarter production and revenues for the period to end September rise by 6% and 16% respectively, while cash production costs declined marginally, Business Day reported.

Zimbabwean platinum producers are eyeing a combined production of 165,000 ounces this year. Aquarius reported last week that Mimosa's output for the quarter to end September had reached 55,110oz.

Zimplats said on Thursday that the 1,294 metric tonnes of platinum ore, which were mined during the first quarter to end September, had increased by 7% on the prior year and by 6% compared to the quarter ending June 2013. Of the ore mined during the period, 55,110 tonnes had been milled at a recovery rate of 82%, it said.

"Tonnes mined increased by 6% from the previous quarter following the introduction of two production fleets at the Mupfuti mine in the quarter," Zimplats said on Thursday.

Although commodity prices remained depressed during the three months under review, the mining group's revenues increased to $145.5m, a 16% surge on the previous quarter. Subsequently, operating profits increased by 77% to $39.8m.

"While metal sales volumes remained largely unchanged from the previous period, revenues increased by 16% as a result of price adjustments on pipeline sales made at year-end (June 2013). Consequently, operating profit increased by 77% to $39.8m."

During the quarterly period under review, Zimplats paid $32m to the Zimbabwean government in direct and indirect taxes. In the previous quarter, tax payments by Zimplats were 7% lower.

The company attributed this to "an increase in withholding tax on foreign services, royalties on metal sales and withholding taxes on technical fees". High mineral royalties have been cited as a deterrent to new investments.
- Business Day