Chronicle Editor
SHURUGWI-based platinum group metals (PGM) producer, Unki Mine, increased its output by 13 percent to 232,100 ounces in 2022 from 204,600 ounces in 2021 largely driven by the de-bottlenecking project.
Unki’s de-bottlenecking project, which was completed in 2021 was done at a cost of US$48 million with the expansion targeted to increase throughput capacity to 210 000 tonnes per month.
Parent company, Anglo Platinum America, in its 2022 annual report said tonnes milled increased by 19 percent as mining activity increased to fill the expanded concentrator capacity.
This follows the successful de-bottlenecking project, which increased capacity from 180,000 tonnes per month to approximately 210,000 tonnes per month in the fourth quarter of 2021.
“This was partially offset by a three percent reduction in 4E built-up head grade from 3,52g/t to 3,42g/t,” it said.
During the year under review, cash operating costs at Unki rose by 32 percent as a result of the increased mining activity, an 11 percent weakening of the rand to the US dollar and inflationary cost increases.
Unit costs increased by 17 percent to R15,636 per PGM ounce compared to R13,392 per PGM ounce in 2021. The company said this reflects a five percent increase to $955 per PGM ounce when expressed in US dollar money terms.
Unki’s earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased by 31 percent to R4,3 billion to R6,2 billion in 2021 with a mining EBITDA margin of 47 percent.
Total capital expenditure after off-mine smelting and refining capital decreased to R650 million from R1,1 billion in 2021.
The company said the stay-in business capital expenditure was R496 million, while project capital expenditure was R154 million.
“Project capital reduced in 2022 following the completion of the Concentrator de-bottlenecking project in 2021,” the company said.
The group’s overall production for the year was 4,0 million PGM ounces in 2022. — Bloomberg/Harare Bureau
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