ZIMBABWE Platinum Holdings has posted a loss before royalties of $13,6 million for the quarter ended December 2014 due to lower production volumes and metal prices.
The company recorded a profit of $38,4 million in the quarter ended September 2014. In the same quarter in 2013, the company recorded a profit of $19,8 million.
“Revenue decreased by 24% from the previous quarter, impacted by an18% decrease in gross revenue received per (4E) ounce and a 7% decrease in sales volumes,” the company said.
Revenue for the group stood at $100,5 million compared to the September quarter at $132,9 million.
Tonnes milled decreased by 12% from the previous quarter due to lower mining volumes, resulting in an 11% decrease in 4E metal production in concentrate.
Total ore mined stood 1,152 tonnes for the December quarter compared to 1,351 tonnes in September while ore milled was 1,163 tonnes during the period under review compared to 1,315 tonnes during the September quarter.
The company said direct operating cost decreased by 33% compared to the previous quarter in line with lower production.
“However, total operating cost for the period under review increased by 21% from the previous quarter, directly as a result of the collapse at Bimha Mine and the loss of associated underground infrastructure (development, support, plant and equipment). Consequently, an amount of $22,9 million has been written off during the quarter,” the group said.
An insurance claim is in the process of being finalised for associated plant and equipment, and any compensation received will offset the impact of the write off.
“In line with lower production and metal prices, revenue based royalties declined by 25%. Consequently, the company reported an operating loss of $20,5 million for the quarter. Production during the quarter was significantly impacted by theprecautionary closure of Bimha Mine (23 August 2014), following the subsidence of ground at that operation,” the company said.