HomeNewsZimplats revenue increases

Zimplats revenue increases

Workers at the
Implats facility
at Ngezi
Harare, Zimbabwe — MININGREVIEW.COM — 05 August 2009 – Zimplats Holdings “’ the Zimbabwean unit of world number two platinum producer Impala Platinum “’ has reported a 25% jump in revenue for the second quarter of 2009, citing higher metal prices.

A statement released here revealed that Zimplats had registered a second-quarter operating profit of US$5 million (R40 million). “Despite a marginal decline in the volume of metals sold, revenue was 25% up on the previous quarter due to the steady increase in metal prices during the period,” the company statement said.

It added that total ore mined had jumped 17% to 677 000 tonnes, although milling was marginally lower than the previous quarter due to electricity cuts and a three-day plant shut-down when the company upgraded its main power supply line.

The company went on to say that it had secured an additional R200 million loan towards the commissioning of a new concentrator for the first phase of its Ngezi expansion project.

“A three-month delay in commissioning the concentrator had adversely affected cash flows and had led to additional costs, after the initial R300 million rand loan had been fully drawn down,” Zimplats added.

The statement said that the strengthening of the South African rand and the adoption of multiple currencies by Zimbabwe had raised costs previously denominated in the local currency by 15%.

“Going forward, however, the dollarisation and the fact that 100% of the ore will be coming from underground, will result in operating costs being more stable and lower than current levels,” Zimplats said.

The company ceased open pit mining operations last November, citing falling metal prices at a time when Zimbabwean miners were grappling with hyperinflation, which reached 231 million% in July 2008.