Business / Companies
Zimplats produces another set of outstanding results
25 Aug 2011 at 09:20hrs | Views
Zimplats produced another set of outstanding results during the past financial year. This set of results represents Zimplats' first full year of operations after the commissioning of the Ngezi Phase 1 expansion project.
Turnover for the year at $527 million was up 30% on the previous year's $404 million, due to a 4% increase in sales volumes and significant improvement in metal prices.
Total operating costs for the year, excluding share based payments, amounted to $264 million, up 18% on the previous year's $223 million. This reflected, in the main, the increase in production volumes, the effect of the strengthening South African Rand on the cost of inputs sourced from South Africa and significant increases in employment costs. Operating cash cost per platinum oz increased by 6% to $1,171. Profit before tax amounted to $236 million compared to $167 million for the previous year.
Mining production exceeded expectation, given the fact that requisite infrastructure for full output at Bimha Mine is still under development. Ore mined for the year at 4.24 million tonnes was 19% above the previus year, mainly reflecting increased production from Bimha Mine.
Ngwarati Mine production was steady at 1.26 million tonnes, a marginal increase on the previous year's 1.25 million tonnes.
Rukodzi Mine production at 1.35 million tonnes was 1% below prior year production of 1.36 million tonnes as a result of reduced overall mining widths in response to poor ground conditions in some sections of the mine.
Despite the fact that it is still under development, Bimha Mine, reached design production capacity in May 2011, as we'd expected in last year's report. The mine produced 1,63 million tonnes of ore, a massive 76% up on the previous year.
Average head grade for the year dropped marginally to 3.35 g/t resulting largely from deteriorating ground conditions at Rukodzi and Ngwarati mines.
Tonnes of ore milled for the year totalled 4.22 million, an increase of 3% on the previous year's 4.09 million tonnes. This mainly reflected the fact that this was Ngezi concentrator's first full year of operation, whereas in the previous year, the plant had operated for just under a year.
The bulk work for Ngezi Phase I Expansion project is now complete except for Bimha Mine's 3rd and 4th ore passes, now expected to be commissioned in September 2011 and March 2012 respectively.
The company say's Zimbabwe's economic future remains very much linked to a speedy resolution of the political challenges facing the country. Political uncertainty together with the unresolved Indigenisation and Economic Empowerment Policies, have resulted in many potential investors adopting a wait and see attitude with regards to investment in the country. Zimplats remains committed to implementing its Ngezi Phase II Expansion project on the basis that the government will honour its commitments as enshrined in the agreements signed in 2006 and earlier.
Turnover for the year at $527 million was up 30% on the previous year's $404 million, due to a 4% increase in sales volumes and significant improvement in metal prices.
Total operating costs for the year, excluding share based payments, amounted to $264 million, up 18% on the previous year's $223 million. This reflected, in the main, the increase in production volumes, the effect of the strengthening South African Rand on the cost of inputs sourced from South Africa and significant increases in employment costs. Operating cash cost per platinum oz increased by 6% to $1,171. Profit before tax amounted to $236 million compared to $167 million for the previous year.
Mining production exceeded expectation, given the fact that requisite infrastructure for full output at Bimha Mine is still under development. Ore mined for the year at 4.24 million tonnes was 19% above the previus year, mainly reflecting increased production from Bimha Mine.
Ngwarati Mine production was steady at 1.26 million tonnes, a marginal increase on the previous year's 1.25 million tonnes.
Despite the fact that it is still under development, Bimha Mine, reached design production capacity in May 2011, as we'd expected in last year's report. The mine produced 1,63 million tonnes of ore, a massive 76% up on the previous year.
Average head grade for the year dropped marginally to 3.35 g/t resulting largely from deteriorating ground conditions at Rukodzi and Ngwarati mines.
Tonnes of ore milled for the year totalled 4.22 million, an increase of 3% on the previous year's 4.09 million tonnes. This mainly reflected the fact that this was Ngezi concentrator's first full year of operation, whereas in the previous year, the plant had operated for just under a year.
The bulk work for Ngezi Phase I Expansion project is now complete except for Bimha Mine's 3rd and 4th ore passes, now expected to be commissioned in September 2011 and March 2012 respectively.
The company say's Zimbabwe's economic future remains very much linked to a speedy resolution of the political challenges facing the country. Political uncertainty together with the unresolved Indigenisation and Economic Empowerment Policies, have resulted in many potential investors adopting a wait and see attitude with regards to investment in the country. Zimplats remains committed to implementing its Ngezi Phase II Expansion project on the basis that the government will honour its commitments as enshrined in the agreements signed in 2006 and earlier.
Source - Byo24News
