Business Reporter
Zimplats’ profit for the quarter ended September 2014 went down 41 percent to $29, 4 million from $50 million recorded in the previous quarter to June due to an underperforming topline.
The platinum miner witnessed a 26 percent drop in profit for the year.
Revenue for the quarter decreased 20 percent to $132 million from $167 million recorded in the previous quarter due to a 17 percent decrease in 4E sales volumes and a four percent decrease in gross revenue received per 4E ounce.
Operating costs were 10 percent lower than the previous quarter due to lower production and sales volumes.
Low production was on the back of the closure of Bimha mine which was closed this year.
“Six production fleets were re-deployed from Bimha Mine to the remaining three mines albeit at reduced productivity levels due to constrained redundancy (mining space) across these operations.
As a result, tonnes mined in the quarter decreased by 12 percent from the previous quarter,” said the company in a statement.
Consequently, operating profit before royalties decreased by 37 percent from the previous quarter to $38,5 million.
Royalties for the quarter decreased 21 percent from the previous quarter due to the decrease in revenue.
Cash cost per 4E ounce increased 22 percent compared to the previous quarter due to the lower production.
The main operating company’s local spend (excluding payments to government and related institutions) decreased 21 percent to $50million due to reduced activity on the Phase II Project.
The company said total payments to the Government of Zimbabwe in direct and indirect taxes remained constant at $19million. Tonnes milled for Zimplats decreased 14 percent from previous quarter due to lower ore supply resulting in a 15 percent decrease in 4E metal in concentrate production.
Metal recovery rate (4E) was marginally lower decreasing by one percent from the previous quarter to 81,1 percent in line with the decrease in head grade.
Metal in converter matte decreased by 22 percent from 135 696 ounces
4E) to 105 667 ounces (4E) mainly as a result of the decrease in ore milled and lower mill grades.
Head grade (4E) at 3,25 grammes per tonne was marginally lower than the previous quarter.
The mining company said work within Bimha Mine has been limited to monitoring of ground conditions and equipment reclamation in safe areas.
“A number of initiatives are underway to understand the nature and extent of the collapse and the structural geological setting and to ensure effective monitoring.
“Development at the Mupfuti Mine remains on schedule to reach design production in early 2015,” said Zimplats.
The company’s appeal against the levying of a penalty on the additional prior years’ income taxes by the Zimbabwe Revenue Authority was heard in the Special Court for Income Tax Appeals on September 24 2014.
Zimplats said the judge reserved judgment after hearing arguments from both parties.
The company continues to engage with the Ministry of Youth Development, Indigenisation and Economic Empowerment with regard to the company’s indigenisation implementation plan.