Mimosa revenue up 4pc

The zanu-pf Government has ordered platinum producers in Zimbabwe to build a refinery, which will boost employment and beneficiation will ensure higher product prices. Above is a section of Mimosa Mining company’s platinum processing plant

Business Reporter
Mimosa Mining Company said revenue for the quarter to September 2014 increased by 4 percent to $82 million, from $79 million in the previous quarter due to higher metal prices.
Production increased by 1 percent to 655,034 tonnes, quarter-on-quarter while head grade decreased by 1 percent to 3,64 grammes per tonne. Volumes processed decreased by 2 percent to 635,761 tonnes and stockpiles at the end of the quarter totalled approximately 184,375 tonnes.

PGM production decreased by 5 percent to 57,799 ounces quarter-on-quarter. Recoveries were up 1 percent to 78 percent.
Mining cash costs for the company decreased 15 percent to $72 per tonne, while costs per PGM ounce decreased 10 percent to $815 due to a reduction in labour costs as a result of the voluntary retrenchment exercise in the prior year.

“Administrative costs of $1,7 million were in line with the previous corresponding period maintaining cost reduction initiatives taken by the Aquarius Group,” said the company in a statement.

Stay-in-business capital expenditure was $95 per PGM ounce for the quarter while cash profit margin for the period increased to 41 percent from 30 percent.
The company said the 12-month rolling average Mimosa Mine‘s revenue for the period increased by 4 percent to $82 million, from $79 million in the previous quarter due to higher metal prices.

The Mimosa expansion pre-feasibility study is underway and is expected to be completed in February 2015.
Aquarius which is the holding company recorded an on-mine EBITDA profit of $14,8 million for the quarter, an increase of $8,5 million or 138 percent compared to the on-mine EBITDA of $6,3 million earned in the previous corresponding quarter.

Revenue for the group was up 3 percent to $62 million compared to $60 million recorded in the previous period due to increased production and improved PGM prices. Aquarius’ share of profit from joint venture entities (Mimosa & Blue Ridge) was $6 million.

“Mimosa and Blue Ridge (in which Aquarius has a 50 percent equity interest) are accounted for using the equity method. Cash held in these two entities at 30 September 2014 was $19 million and does not form part of the above cash balances.

“Under the previous method of proportionately consolidating its investment in Mimosa and Blue Ridge, 50 percent of this cash ($9,5 million) would have been included in Aquarius’ Group cash balance,” said the company.