Mimosa localises foreign currency account

“Mimosa has now complied with the RBZ’s recent directive to localise its offshore foreign currency account in Zimbabwe,” said the platinum producer in its half-year results for the six months to December 2011.
The platinum producer, which is owned by Aquarius mining, said it would work closely with other stakeholders to ensure the compliance does not negatively impact on its operations.
“Mimosa will work closely with its suppliers and bankers in order to ensure that this development does not have a negative impact on operations,” said the company.
Mimosa added that because the Government had increased royalties for gold and platinum by 100 percent to seven percent and 10 percent respectively, the mining firm would engage relevant authorities with a view to taking a holistic approach on the issue of royalties, taxes and other relevant payments.
The engagement would be pursued to come up with a streamlined payment structure.
The platinum producer said during the period under review, it continued to operate at capacity although some production disruption was caused in the later months of the half-year by power outages as well as surface electrical breakdowns.
During the period under review, the company’s stay-in-business capital expenditure rose because nearly half of the approved capital budget for the 2012 financial year was spent in the first few months of the financial year on production equipment with long lead times.
“Capital was also spent during the period on a conveyor belt extension.”
Mimosa reported a $29,6m net profit in the first half of 2011.
The local miner’s revenue stood at $72,8 million while cost of sales in mining administration and processing amounted to $38,4 million.
Production slid three percent to 1 182 million tonnes resulting in volumes processed decreasing by one percent to 1,15 million tonnes.