Business / Companies
Zimplats reports 51% rise in revenue, 604% rise in net profit
27 Feb 2014 at 13:35hrs | Views
Zimplats Holdings grew its revenue by 51% to $267 million from the same period last year due to a 62% increase in platinum sales volume from 70 225 ounces to 113 876 ounces. The impact of the increase in sales volume was offset by a 7% decrease in gross revenue per platinum ounce to $2 342, Business Daily reported.
According to the group's results, sales volumes for the period were high due to the commissioning of the second concentrator module at Ngezi in April 2013. The results for the same period last year were affected by the planned 42 days furnace reline shutdown from August to September 2012 and the 21 days furnace fire outage in November 2012.
Total operating costs increased by 52% to $221 million from the same period last year mainly due to increased production volumes and higher cost of power. Cash cost per platinum ounce decreased by 10% to $1 346 due to the 62% increase in platinum production.
Consequently, profit before tax amounted to $46 million, 189% higher than the $16 million for the same period last year. The net profit attributable to members at $32 million was 604% above the same period last year's $6 million loss mainly due to higher sales volumes.
At the end of the half year, the group had a cash balance of $17 million and long-term bank borrowings of $105 million. The bank borrowings have a final maturity of 31 December 2017 with staged payments commencing in January 2015.
Tonnes mined increased by 13% to 2.68 million tonnes, compared to same period last year. This was due to accelerated production ramp -up at the new underground mine (Mupfuti) and improved production efficiencies at the established mines.
Three production fleets were introduced at Mupfuti Mine during the period, increasing production from the mine by 261% to 374,000 tonnes. However, Bimha Mine production was lower than the same period last year due to a shear zone in the southern section of the mine, which is affecting ground stability through pillar scaling and footwall heaving. Short term contingency plans have been identified and implemented to manage the shear zone while work on the long term stabilisation measures is on-going.
Tonnes milled increased by 37% to 2.98 million tonnes compared to the same period last year due to additional capacity at Ngezi concentrator following the commissioning of the Phase II module in April 2013. 4E mill grade for the period at 3.264g/t was 2% lower than the same period last year due to the milling of partially oxidized low grade ore from old stockpiles.
Indigenisation
Implats continues to engage with the Government of Zimbabwe with regard to the indigenisation implementation plan and to seek clarity around proposed changes to tax legislation.
Mimosa
Mill throughput increased by 3.6% to 1.24 million tonnes and platinum production in concentrate amounted to 52 600 ounces. Unit costs per platinum ounce in concentrate rose marginally by 0.8% to $1 663 in dollar terms and by 19.5% to R16 692 in rand terms, the latter impacted primarily by the weaker rand.
According to the group's results, sales volumes for the period were high due to the commissioning of the second concentrator module at Ngezi in April 2013. The results for the same period last year were affected by the planned 42 days furnace reline shutdown from August to September 2012 and the 21 days furnace fire outage in November 2012.
Total operating costs increased by 52% to $221 million from the same period last year mainly due to increased production volumes and higher cost of power. Cash cost per platinum ounce decreased by 10% to $1 346 due to the 62% increase in platinum production.
Consequently, profit before tax amounted to $46 million, 189% higher than the $16 million for the same period last year. The net profit attributable to members at $32 million was 604% above the same period last year's $6 million loss mainly due to higher sales volumes.
At the end of the half year, the group had a cash balance of $17 million and long-term bank borrowings of $105 million. The bank borrowings have a final maturity of 31 December 2017 with staged payments commencing in January 2015.
Three production fleets were introduced at Mupfuti Mine during the period, increasing production from the mine by 261% to 374,000 tonnes. However, Bimha Mine production was lower than the same period last year due to a shear zone in the southern section of the mine, which is affecting ground stability through pillar scaling and footwall heaving. Short term contingency plans have been identified and implemented to manage the shear zone while work on the long term stabilisation measures is on-going.
Tonnes milled increased by 37% to 2.98 million tonnes compared to the same period last year due to additional capacity at Ngezi concentrator following the commissioning of the Phase II module in April 2013. 4E mill grade for the period at 3.264g/t was 2% lower than the same period last year due to the milling of partially oxidized low grade ore from old stockpiles.
Indigenisation
Implats continues to engage with the Government of Zimbabwe with regard to the indigenisation implementation plan and to seek clarity around proposed changes to tax legislation.
Mimosa
Mill throughput increased by 3.6% to 1.24 million tonnes and platinum production in concentrate amounted to 52 600 ounces. Unit costs per platinum ounce in concentrate rose marginally by 0.8% to $1 663 in dollar terms and by 19.5% to R16 692 in rand terms, the latter impacted primarily by the weaker rand.
Source - www.businessdaily.co.zw
