Business Reporter
Zimbabwe Platinum Mines said revenue for the quarter ended December 31 fell 13 percent from the quarter ended September due to lower sales and depressed platinum prices.Revenue for the period was US$125,9 million, down from US$145,5 million in the previous quarter. Compared with the quarter ended December 2012, Zimplat’s revenue is up 52 percent.
Operating profit fell 48 percent to US$20,6 from US$39,8 million recorded in the quarter ended September. Tonnes mined increased by 7 percent from the prior quarter mainly due to the introduction of additional production fleet at Mupfuti Mine and production improvements at Bimha Mine which was affected by the shear zone (Mutambara Shear) in the previous quarter
Zimplats said short term contingency plans have been identified and implemented at Bimha Mine to manage the shear zone while works on long term stabilisation measures were ongoing.
Milling and metal in concentrate production were impacted by the shutdown of the Ngezi concentrator ball mill for relining and decreased by 2 percent from the previous quarter
An explosion at the smelter on December 17 last year resulted in a tap block blow out and eruption of molten material from the furnace. Repairs were completed and the furnace is back on full power. “As a consequence metal in converter matte was 6 percent lower than the previous quarter. Lost production should be recovered by end of the financial year,” said Zimplats in a statement yesterday.
The company’s local spend (excluding payments to government and related institutions) increased by 43 percent to US$60 million. Total payments to government in direct and indirect taxes decreased by 9 percent from US$32 million to US$29 million compared to previous quarter.
This was mainly due to the lower revenues recorded in the current quarter. Development of the new underground mine (Mupfuti) remains on schedule to reach design production in early 2015.
There are now three production fleets after the introduction of an additional fleet this quarter.