Vusumuzi Dube
Judith Phiri, Business Reporter
Zimbabwe’s sole minerals marketing agent, Minerals Marketing Corporation of Zimbabwe (MMCZ) sold a total 1,9 million metric tonnes (mt), valued at US$1,5 billion in the first half of 2024, missing its first-half revenue and volume projections.
In a statement, MMCZ acting general manager, Dr Nomusa Moyo said the corporation had aimed to sell 2 million mt valued at US$2,030 billion.
She said the declines in global mineral led to a 6 percent volume miss and a 26 percent revenue shortfall.
“During the same period last year, the Corporation sold 1 531 149 mt valued at US$1,689 billion. This points to a 25 percent year on year increase in sales volumes and an 11 percent slump in value terms,” she said.
She said depressed mineral commodity prices for some of Zimbabwe’s top revenue contributors significantly impacted performance in the first half of 2024.
Dr Moyo said lithium was down 72 percent, nickel 20 percent, coal 13 percent and coke 39 percent, translating to significant price declines compared to budget forecasts.
“However, year-over-year price increases were observed for platinum as it firmed 6 percent, rhodium 6 percent, copper 16 percent, fluorite 2 percent and chrome concentrates 4 percent, these were not enough to offset the negative impact on overall revenue,” she added.
The top three contributors in terms of value in the first six months of 2024 were Platinum Groups Metals (PGMs) matte, PGMs concentrate and Zimbabwe’s primary lithium export, spodumene.
Dr Moyo said PGMs matte accounted for 31.8 percent of the corporation’s mineral revenue in the first half with 18 844mt of matte valued at US$479 million being sold.
She said a total of 85 407mt of concentrates valued at US$294 million were exported in the period under review.
Dr Moyo reported a mixed performance for sales in the first half of the year compared to the same period last year.
“Overall, concentrated sales volume grew by 30 percent, while their value increased by 2 percent. However, matte sales experienced a 7 percent volume increase, but a 5 percent decrease in value,” she said attributing the volume rise across both categories to stock carried over from the previous period.
Noting that ongoing weakness in PGM prices impacted overall sales value, Dr Moyo expressed optimism over firming gold prices which have been offsetting depressed trends in the PGMs group.
She said spodumene sales significantly outperformed expectations in the first half of 2024 as the corporation achieved a total value of US$233 017 from 331 826mt sold.
“This surpassed the budgeted target of US$105 000 from 275 000mt, reflecting a substantial increase in both volume 21 percent and value 122 percent.”
Online Reporter