Platinum producer Zimplats Holdings Limited recorded a 9% and 13% decline in revenue and output for the quarter July- September due to lower sales volumes.
The company recorded $133 million revenue compared to $146,8 million in the last quarter.
Revenue, however, was 21% up compared to $110 million the same period last year.
“Operating costs were 6% lower than previous quarter in line with lower production and sales volumes. Operating profit declined by 12% to $61 million mainly due to lower revenue,” the company said in a statement.
Output for the company decreased by 13% to 90 878 tonnes compared to 103 757 tonnes.
“4E metal production was thus 13% below previous quarter in line with the lower mill and furnace throughput,” the company said.
Ore mined stood at 1 155 tonnes compared to 1 138 tonnes and operations were up from the previous quarter performance.
While milling operations were 7% below the previous quarter due to reduced operating hours, as there were planned maintenance shutdowns. Ore milled was at 1 060 tonnes from 1 137 tonnes.
Zimplats said the company power tariff increased by 60% in September and is much higher than was expected and will negatively affect future cost performance.
“Negotiations with the power utility on this issue are ongoing.”
Platinum was being sold at $1 661 per ounce during the period under review compared to $1 783 per ounce in the period April – June.
Metal prices have continued to weaken reflecting market concerns over economic stability of European countries.
The company said it is working on a revised indigenisation implementation plan and it would be submitted to the relevant authorities during this month.
The company is owned 87% by Implats and is expected to comply with the government indigenisation law. Last month, the company launched the community share ownership trust in Mhondoro Ngezi.