ZIMBABWE Platinum Mines Limited (Zimplats) has posted a 164% increase in operating profit to $50 million for the quarter ended June 2014 buoyed by increased production at its mines.
In its quarterly report, Zimplats said the operating profit for the quarter ended June 2013 stood at $22,4 million.
“Revenue increased by 21% from the previous quarter due to a 14% increase in 4E sales volume, 6% increase in gross revenue per 4E ounce and 26% increase in nickel prices. Consequently, operating profit increased by 39% from the previous quarter to $50 million,” the company said.
The 4E include platinum, palladium, rhodium and gold.
During the period under review, tonnes mined increased by 10% from the previous quarter to 1, 539 tonnes due to production ramp up at Mupfuti mine and improved productivity at other mines.
Tonnes milled also increased by 8% to 1 536 tonnes from the previous quarter due to increased ore supply resulting in the metal 4E in concentrate produced increasing by 9%. Platinum prices increased by 1% during the quarter review to $1 447 per ounce.
Zimplats reported that the metal recovery rate of 4E at 81,5% was marginally lower than the 81,8% realised in the previous quarter.
Zimplats said throughput at the Zimplats operation was planned at 6,2million tonnes per annum and the initial production loss estimate indicates a 9,5% reduction in tonnage throughput in 2015 and 3% in the ensuing year.
“A full rock engineering analysis is underway to better understand the back area failure and once this is completed, an updated set of mitigation measures will be communicated and implemented,” the company said.
The company local spend increased by 25% to $63 million while direct and indirect taxes stood at $19 million during the quarter under review.