Zimplats revenue up 41%

Platinum miner, Zimplats yesterday said revenue for the quarter ended December last year increased by 41 percent to $139 million on the back of strong metal sales.

The miner also reported $20,6 million profit after royalties, up from $16,2 million achieved in the September quarter.

"Revenue increased by 41 percent from the previous quarter largely due to the 70 percent increase in (Platinum, Palladium, Gold and Rhodium) 4E metal sales volumes," Zimplats said in a trading update.

"Concentrates stockpiled during the furnace shutdown were sold during the quarter resulting in a 70 percent increase in 4E metal sales volumes."

Royalties were 39 percent higher than the previous quarter, in line with the increase in revenue.

Operating costs increased by 44 percent compared to the previous quarter due largely to the higher sales volumes.

"This was partly offset by the reversal of impairment on a long term receivable of $13 million," it said.

Tons mined increased marginally from the previous quarter to 1, 735 million owing to sustained good operational performances across all the mines.

But, tons milled decreased by six percent to 1, 6 million.

Local spending in Zimbabwe excluding payments to the government and related institutions for the quarter increased from $27 million recorded in the previous quarter to $61 million.

Total payments to the Government in direct and indirect taxes increased from $8 million reported in the previous quarter to $11 million.

The redevelopment of Bimha Mine remained on schedule to reach full production in April 2018 with $24 million having been spent on the project to date.

Zimplats said it was also engaging the Government over its intention to compulsorily acquire land measuring 27 948 hectares within the company's special mining lease area.