Zimplats bounces back to profitability

Zimbabwe's largest platinum miner Zimplats says production for the year ended June 2016 hit a record 290 410 ounces, 53 percent higher than prior year, helping the company bounce back to profitability.

Run of mine ore for the period surged 26 percent to 6 million tonnes.

Total ore milled also improved 24 percent to 6,4 million tonnes. In the period under review palladium production increased by 53 percent to 236 375 ounces while gold rose 41 percent to 30 578 ounces.

Nickel was also 40 percent higher than prior year levels. Resultantly, Zimplats' profit after tax for the year recovered 110 percent to $7,32 million from a loss position of $74 million despite fluctuations in global metal prices experienced in the year under review.

Revenue for the year rose 16 percent to $471,778 million from prior year's $408,391 million on increased production and sales volumes. Gross profit reduced 12 percent to $81 million from $93 million in the comparable period. Gross revenue per Pt ounce dropped 24 percent to $1,638 million from $2,167 million on the back of depressed metal prices.

The extractive industry has been negatively affected by the fluctuations in global prices of metals and a slowdown in the Chinese economy.