Zimplats first quarter revenue down 14%
By Thandiwe Katinhimure
Zimbabwe’s largest platinum miner, Zimplats, has recorded a 14 percent drop in revenue in the quarter ended 31 March 2018 on the back of lower sales volumes.
In its quarterly update, Zimplats said the decrease was mainly due to a 16 percent decrease in the 4E metal sold.
“Revenue decreased by 14 percent from the previous quarter mainly due to the 16 percent decrease in the volume of 4E metal sold, which was partly offset by the improvement in metal prices,” it said.
The Impala Platinum subsidiary also said that revenue decreased due to lower sales volumes as concentrates stockpiled during the planned furnace shutdown in the first quarter were sold in the previous quarter.
“4E metal sales for the quarter at 137 347 ounces were 16 percent lower than previous quarter. The previous quarter sales benefited from the export of concentrates stockpiled in the quarter ended 30 September 2017 when the furnace was on planned shutdown,” said Zimplats.
“Net operating costs decreased by 35 percent compared to the previous quarter as a result of decrease in 4E sales volumes, lower selling expenses and the recognition of $9.8 million in respect of treasury bills received in settlement of interest on the $34 million Reserve Bank of Zimbabwe advance.”
During the period the platinum miner saw output dropping by one percent from the previous quarter as a result of a decrease in the number of operating days from 92 to 90.
It said the decrease in tones mined was, however, partly offset by the ramp-up in production at Bimha Mine and a better performance at the South Pit Mine.
Meanwhile, Zimplats said a total of $54.2 million has been spent on the redevelopment of Bhima Mine set to reach full capacity in April this year and $17.7 million was committed as at 31March 2018.
This is against an approved total project budget of $101 million.
The miner is also developing Mupani Mine, which is the replacement mine for Ngwarati and Rukodzi.
Zimplats is targeting ore contact at Mupani by February 2020 and full production in August 2025.
A total of $24.4 million has been spent and $20.2 million committed on the project as at 31 March 2018 against an approved total project budget of $264 million. The Chronicle
