Business / Companies
Zimplats raise its revenues by 10%
01 May 2015 at 09:52hrs | Views
Zimplats raised revenues for the quarter to end March by 10% to $110m, spurred by a 4% rise in sales volumes to 104 608 ounces although operating costs also went up by 11%.
Zimplats, whose biggest mine, Bimha, collapsed last year, said on Thursday that revenues for the quarter period through to March had risen by 10% to $110.2m. It had paid $2.7m in royalties during the period, leading to an operating profit of $6.7m.
"Cash cost per 4E ounce increased by 8% from the previous quarter largely due to increased support costs at Mupfuti Mine as a result of mining across a major fault, as well as higher cost of production for ore mined during reef development at Bimha Mine," the company said.
Direct and indirect tax payments to the government decreased by 31% to $9m compared to the previous quarter "mainly due to a reduction in royalties" which are "now payable at the mining agreement rate".
Zimplats mined 8% more ore after accounting for 43 000 tonnes of additional ore mined out during redevelopment of the collapsed Bimha mine. The 8% increase in mined ore has also been attributed to a 14% production increase at the Mupfuti mine.
It's open pit mine is expecting to produce ore in the next few months after clearing out of the bulk waste at the mine was carried out during the quarter under review. The open pit mine is being run under a contract arrangement, the company has previously said.
Zimplats said the head grade for its operations had marginally decreased by 1% to 3.23 grammes per tonne owing to "dilution from mining access drives at Bimha Mine and two major faults with reef displacement which were intersected at Mupfuti Mine".
Milled ore had increased by 9% from the previous quarter due to improved ore supply. This had resulted in an 8% jump in the platinum metal in concentrate produced.
Zimplats, whose biggest mine, Bimha, collapsed last year, said on Thursday that revenues for the quarter period through to March had risen by 10% to $110.2m. It had paid $2.7m in royalties during the period, leading to an operating profit of $6.7m.
"Cash cost per 4E ounce increased by 8% from the previous quarter largely due to increased support costs at Mupfuti Mine as a result of mining across a major fault, as well as higher cost of production for ore mined during reef development at Bimha Mine," the company said.
Direct and indirect tax payments to the government decreased by 31% to $9m compared to the previous quarter "mainly due to a reduction in royalties" which are "now payable at the mining agreement rate".
It's open pit mine is expecting to produce ore in the next few months after clearing out of the bulk waste at the mine was carried out during the quarter under review. The open pit mine is being run under a contract arrangement, the company has previously said.
Zimplats said the head grade for its operations had marginally decreased by 1% to 3.23 grammes per tonne owing to "dilution from mining access drives at Bimha Mine and two major faults with reef displacement which were intersected at Mupfuti Mine".
Milled ore had increased by 9% from the previous quarter due to improved ore supply. This had resulted in an 8% jump in the platinum metal in concentrate produced.
Source - fin24
