Business / Companies
Zimplats operating profit increase 84%
01 Nov 2013 at 03:38hrs | Views
Platinum mining firm Zimplats recorded an operating profit of $39,8 million for the quarter ended 30 September 2013 representing an 84 percent increase over the same period last year.
Revenue for the quarter was $145,5 million, an increase of 56 percent from the prior year while operating costs were up 47 percent from last year.
"An increase in the revenue generated was a result of price adjustments on pipeline sales made at year-end (June 2013) which consequently pushed operating profit upwards."
During the period under review, production from mining activities went up 7 percent from the same period last year while from the previous quarter it increased by 6 percent mainly because of the introduction of production fleets at Mupfuti mine.
"Mining production for the period was 6 percent higher than in the previous quarter following the introduction of two fleets at the Mupfuti Mine in the quarter and they achieved design capacity on schedule of 20 000 tonnes per month in October.
"Design of the new mine remains on schedule to reach design production in early 2015," the company said in a statement.
Zimplats however said production at Bimha Mine went down by 21 000 tonnes from previous quarter due to effects of a shear zone (Mutambara shear) which is impacting mining operations.
The company added that implementation of identified stabilisation measures was progressing well while other contingency plans are also being implemented to avoid any ore shortages.
Zimplats also indicated that its local spend, exclusive of payments to Government and related institutions remained unchanged at $42 million, while it paid $32 million to Government in direct and indirect taxes, 7 percent higher than prior quarter.
This is largely as a result of an increase in withholding tax on foreign services, royalties on metal sales and withholding taxes on technical fees received from the operating subsidiary.
The company added that their tax penalty appeals and the review of interest on the prior years' tax liabilities are still pending finalisation in the courts, while payment of the prior years' tax liabilities has continued in terms of the agreed plan.
Zimplats also said work is in progress in terms of the company's indigenisation plan.
"Our indigenisation plan will now be reviewed by the new Minister of indigenisation and these discussions will also include further engagement on the previously announced land acquisition by Government," said the company.
Revenue for the quarter was $145,5 million, an increase of 56 percent from the prior year while operating costs were up 47 percent from last year.
"An increase in the revenue generated was a result of price adjustments on pipeline sales made at year-end (June 2013) which consequently pushed operating profit upwards."
During the period under review, production from mining activities went up 7 percent from the same period last year while from the previous quarter it increased by 6 percent mainly because of the introduction of production fleets at Mupfuti mine.
"Mining production for the period was 6 percent higher than in the previous quarter following the introduction of two fleets at the Mupfuti Mine in the quarter and they achieved design capacity on schedule of 20 000 tonnes per month in October.
"Design of the new mine remains on schedule to reach design production in early 2015," the company said in a statement.
Zimplats however said production at Bimha Mine went down by 21 000 tonnes from previous quarter due to effects of a shear zone (Mutambara shear) which is impacting mining operations.
The company added that implementation of identified stabilisation measures was progressing well while other contingency plans are also being implemented to avoid any ore shortages.
Zimplats also indicated that its local spend, exclusive of payments to Government and related institutions remained unchanged at $42 million, while it paid $32 million to Government in direct and indirect taxes, 7 percent higher than prior quarter.
This is largely as a result of an increase in withholding tax on foreign services, royalties on metal sales and withholding taxes on technical fees received from the operating subsidiary.
The company added that their tax penalty appeals and the review of interest on the prior years' tax liabilities are still pending finalisation in the courts, while payment of the prior years' tax liabilities has continued in terms of the agreed plan.
Zimplats also said work is in progress in terms of the company's indigenisation plan.
"Our indigenisation plan will now be reviewed by the new Minister of indigenisation and these discussions will also include further engagement on the previously announced land acquisition by Government," said the company.
Source - chronicle
