Zimplats profits rises 522%

Published: 15 September 2017

Zimplats profit after tax for the full year to 2017 increased 522 percent to 45 million from $7 million the previous comparative period.

The platinum mine's profit before tax was also up at $100 million from $29 million in 2016 aided by $20, 8 million proceeds from the disposal of Treasury Bills issued in settlement of the $34 million Reserve Bank of Zimbabwe advance.

Zimplats said the surge in PBT was also driven by $14 million export incentive received from the central bank.

Since inception the company generated cash in excess of $5,3 billion with majority of the funds going towards funding operations.

Of the cash generated $1,4 billion went towards capital and expansion projects.

The company had to sell its TB's at a 38 percent discount, a situation which saw the platinum miner amassing $21 million.

Bimha Mine re-development which has a budget of $100 million is expected to be complete and coming on line in March next year. About 80 percent of the money budgeted for the project has since been spent.

Development of Mupani Mine, which is expected to replace areas that have mined out with the platinum miner , is said to be going on well with $264 million going to be spent.

Revenue for the year increased by 9 percent from $471, 8 million in FY2016 to $512, 5 million despite a 5 percent decrease in 4E sales volumes from 582 833 ounces to 555 892 ounces.

Revenue was supported by an increase in average metal prices as gross revenue per platinum ounce improved from $1 638 to $1 868.

Cost of sales decreased by 6 percent from $390, 7 million in FY2016 to $367, 1 million largely due to the 5 percent decrease in sales volumes.

Gross profit margins improved from 17 percent in FY2016 to 28 percent in the current year mainly due to the improvement in average metal prices.

Operating cash cost per platinum ounce increased by 2 percent from $1 197 in FY2016 to $1 225 in FY2017 due to a 3 percent decline in platinum production (including sales in concentrate form) and an increase in prices of consumables

- bh24

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