Bimha pushes Zimplats to record production

Published: 31 August 2017

Zimbabwe's largest platinum producer, Zimbabwe Platinum Holdings posted a record ore production of 7 million tonnes in FY2017 compared to 6, 6 million tonnes in the previous year.

This was on the back which the company said was made possible by the redevelopment of Bimha Mine, which contributed production of 916 000 tonnes, compared to 442 000 tonnes in the same period last year.

A total 6, 7 million tonnes of ore were milled in the year compared to 6, 4 million tonnes milled in the previous period and this was largely due to good plant running time achieved over the year and improved ore supply from the mines but production of platinum in converter matte decreased by 2 percent to 262 871 ounces in line with the decrease in furnace throughput.

Meanwhile, the platinum producer's FY profits rose significantly on the Reserve Bank of Zimbabwe (RBZ) export incentives

Zimplats posted a $45, 53 million profit in the year ended June, 2017 up from $7, 32 million achieved in the prior year, a performance the company mainly attributed to a government export incentive scheme.

It said it was awarded a 2, 5 percent incentive on export proceeds received in Zimbabwe.

"The profit for the year ended 30 June 2017 was boosted by a total of $34, 8 million realized from the export incentive and disposal of treasury bills from the Reserve Bank of Zimbabwe (RBZ)," Zimplats said.

The company realised $20, 8 million from the disposal of treasury bills.

Revenue for the year increased by 9 percent to $512, 5 million from $471 million due to improved metal prices.

Average metal prices improved from $1 638 in the prior year to $1 868 in the period under review.

The increase in revenue was despite a 5 percent decrease in sales volumes which declined from 582 833 ounces to 555 892 ounces.

In terms of projects being implemented, Zimplats said the Selous Metallurgical Complex Base Metal Refinery refurbishment project remained constrained by cash flow challenges, with total project expenditure as at June, 30 2017 standing at $23, 4 million.

At least $20, 6 million was spent on the redevelopment of the Bimha Mine in the just ended year and it remained on schedule to achieve design production capacity by April 2018.

"A total of $4 million was spent on expansion projects during the year compared to $27 million in the previous period.

"A total of $59 million was spent on stay in business projects during the period, 40 percent higher than the $42 million spent in the previous period."
- bh24

Tags: Bimha,