ZIMBABWE Platinum Mines (Private) Limited (Zimplats) recorded a profit after tax of $7,3 million for the year ended June 2016 compared to a loss of $74,3m during the same period last year.
BY VICTORIA MTOMBA
During the period, the company’s revenue went up by 16% to $471,7m from $408m due to the net effect of sales volume offset by market prices.
A 26% increase in ore mined was recorded during the period under review to 6 580 tonnes from 5 235 tonnes in 2015.
Zimplats chief executive officer, Alex Mhembere told an analysts briefing yesterday: “The profit after tax is small, but we welcome it because we are coming from a loss position.”
During the period under review, the company reduced capital expenditure by 56% to $94m.
Mhembere said the platinum miner reduced salaries of senior managers by 15% and 5% for ordinary staff members.
Platinum prices were at $1 000 per ounce during the period under review.
Mhembere said $453m has so far been spent to date on the Ngezi 2 project, while Base Metal Refinery (BMR) was delayed as a result of the current cash squeeze and $22m had been spent against $131m they had targeted to spend.
He said $15,2m had been spent on the Bimha Mine project and the first production team would be deployed this month.
The Zimplats boss said the construction of BMR was now at advanced stage, having procured some of the major requirements.
He said cash shortages had impacted on the business, but they were able to sail through, with support from their bank.
Mhembere said major challenges were fluctuations in metal prices and the availability of power, which are critical in the survival of the business.
Zimplats is a major platinum company in the country.