HomeBusinessZimplats revenue up 9%

Zimplats revenue up 9%

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ZIMBABWE Platinum Mines (Private) Limited (Zimplats) recorded a 9% increase in revenue to $143,6 million in the quarter ended June 30, 2017, thanks to the 16% increase in platinum, palladium, gold and rhodium (4E) metal sales volumes, which was partly offset by a general decrease in metal prices.

BY TARISAI MANDIZHA

In the previous quarter, the company recorded $131,3 million.

In a statement accompanying the group’s financial report for the quarter ending June 30, 2017, Zimplats Holdings Limited said net operating costs increased by 28% in comparison to the previous quarter largely due to the 16% increase in sales volumes.

“The net operating expenses for the previous quarter benefitted from the $8 million recognised in relation to the previously written off Reserve Bank of Zimbabwe (RBZ) debt,” Zimplats said.

“Royalties were 9% higher than the previous quarter, in line with the increase in revenue.”

In the period under review, cash costs per 4E ounce increased marginally from the previous quarter.

While amortisation and depreciation cost per 4E ounce improved by 17% from the previous quarter in line with the increase in metal production and gross revenue per 4E ounce decreased by 5% from the previous quarter due to lower metal prices.

During the period under review, tonnes mined increased by 10% from the previous quarter due to an extra nine operating days in the quarter.

“4E head grade, at 3,24g per tonne, was marginally lower than the previous quarter due to dilution from faults and barren geological intrusives in the areas mined during the quarter,” the group said.

“Ore milled and 4E metal in concentrate produced increased by 18% and 17%, respectively, owing to an increase in the overall plant running time due to the extra nine days.
“In the previous quarter, running time was affected by the seven-day planned reline shutdown at the Ngezi concentrator.”

The group said local spend in Zimbabwe, excluding payments to the government and related institutions, increased to $114 million from $51 million recorded in the previous quarter.

“Total payments to the government in direct and indirect taxes increased to $51 million from the $10 million reported in the previous quarter,” Zimplats said in a statement.

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