Business / Companies
Zimplats revenues drop to $133 million
02 Nov 2011 at 19:53hrs | Views
Zimbabwe Platinum Mines (Zimplats) registered a nine percent slump in revenues to $133 million in the first quarter ended September 2011 amid rising production costs and lower volumes, The Daily News reported.
The miner - 86 percent owned by Johannesburg Securities Exchange listed Impala Platinum Mines -said milling operations performance was seven percent below the previous quarter as a result of reduced operating hours due to planned maintenance shutdowns.
"Cash cost of production per 4E ounce was 15 percent above the previous quarter driven mainly by lower production volumes," Zimplats said.
It said 4E metal production was 13 percent below the previous quarter in line with the lower mill and furnace throughput.
Operating profit went down 12 percent to $61 million, mainly due to the depressed revenue.
Zimplats milled 1 060 tonnes of 4E ore during the period under review down seven percent from 1 137 tonnes in the previous quarter while 90 878 4E ounces were sold, 12 percent lower than 103 757 ounces in the quarter ended June.
However, Zimplats said mining operations were ahead of plan and previous quarter's performance.
"Grade control was good with average head grade marginally above the previous quarter. Operating costs were six percent lower than previous quarter in line with lower production and sales volumes."
Zimplats said the recent increase in power tariffs will push costs up in the coming financial period.
The power tariff was increased by 60 percent with effect from September 1, 2011.
"The tariff adjustment is much higher than was expected and will negatively affect future cost performance.
"Negotiations with the power utility on this issue are on-going," the group said.
It said $16 million in directand indirect taxes was paid to the fiscus, 19 percent higher than the previous quarter.
The company received a total of $163 million in the quarter of which $151 million was from metal sales and $12 million an off-shore loan draw down while 63 percent of the available cash was spent on operations, 28 percent on on-going capital expenditure projects and nine percent was paid to the government.
The company said its local spend, excluding payments to government and related institutions, increased from 48 percent of total expenditure in the year ended June to 52 percent in the quarter to September.
Recently, Zimplats launched Zimbabwe's first Community Share Trust as part of complying with government's Indigenisation Act ' requiring all foreign-owned firms to cede at 51 percent shareholding to black locals.
The trust is a vehicle for broad-based participation in shareholding in businesses by communities living in areas where the companies exploit natural resources.
Proceeds from such participation are supposed to be used for the provision of social and economic infrastructure to communities in line with their priorities.
Under the scheme, Zimplats gave 10 percent shareholding to the Mhondoro-Ngezi and Zvimba communities.
It also offered $10 million to the local community to be disbursed over a three-year period.
The miner - 86 percent owned by Johannesburg Securities Exchange listed Impala Platinum Mines -said milling operations performance was seven percent below the previous quarter as a result of reduced operating hours due to planned maintenance shutdowns.
"Cash cost of production per 4E ounce was 15 percent above the previous quarter driven mainly by lower production volumes," Zimplats said.
It said 4E metal production was 13 percent below the previous quarter in line with the lower mill and furnace throughput.
Operating profit went down 12 percent to $61 million, mainly due to the depressed revenue.
Zimplats milled 1 060 tonnes of 4E ore during the period under review down seven percent from 1 137 tonnes in the previous quarter while 90 878 4E ounces were sold, 12 percent lower than 103 757 ounces in the quarter ended June.
However, Zimplats said mining operations were ahead of plan and previous quarter's performance.
"Grade control was good with average head grade marginally above the previous quarter. Operating costs were six percent lower than previous quarter in line with lower production and sales volumes."
Zimplats said the recent increase in power tariffs will push costs up in the coming financial period.
The power tariff was increased by 60 percent with effect from September 1, 2011.
"The tariff adjustment is much higher than was expected and will negatively affect future cost performance.
"Negotiations with the power utility on this issue are on-going," the group said.
It said $16 million in directand indirect taxes was paid to the fiscus, 19 percent higher than the previous quarter.
The company received a total of $163 million in the quarter of which $151 million was from metal sales and $12 million an off-shore loan draw down while 63 percent of the available cash was spent on operations, 28 percent on on-going capital expenditure projects and nine percent was paid to the government.
The company said its local spend, excluding payments to government and related institutions, increased from 48 percent of total expenditure in the year ended June to 52 percent in the quarter to September.
Recently, Zimplats launched Zimbabwe's first Community Share Trust as part of complying with government's Indigenisation Act ' requiring all foreign-owned firms to cede at 51 percent shareholding to black locals.
The trust is a vehicle for broad-based participation in shareholding in businesses by communities living in areas where the companies exploit natural resources.
Proceeds from such participation are supposed to be used for the provision of social and economic infrastructure to communities in line with their priorities.
Under the scheme, Zimplats gave 10 percent shareholding to the Mhondoro-Ngezi and Zvimba communities.
It also offered $10 million to the local community to be disbursed over a three-year period.
Source - Daily News
