Zimplats buoyed by improved production

ended June 30.
The miner’s revenues for the June quarter amounted to about US$147 million compared to US$131 million in the previous quarter.
Revenues increased by more than US$115 million from the prior comparable period.

The latest results reflect an improved bottom line with Zimplats’ operating profit ending the quarter at about US$70 million against US$66 million in the March quarter on the back of higher production volumes, improved metal prices and management efforts to contain costs.
There was also a steady increase in production across all the platinum group metals. Output for platinum, palladium, gold and rhodium went up by 24 percent, 23 percent, 24 percent and 24 percent respectively to end

the June quarter at 51 570 ounces, 41 564 ounces, 5 957 ounces and 4 787 ounces.
The same upward trend was achieved with the other base metals namely iridium, ruthenium, silver, nickel, copper and cobalt.

The company’s surge in production meant its contribution to the fiscus also took an upward trajectory.
The June quarter broke the previous record as Zimplats’ direct and indirect contribution to the fiscus shot up 32 percent to reach US$13,3 million.

Zimplats chief executive Mr Alex Mhembere said Zimplats remained upbeat about discussions with company and the Government regarding its empowerment proposal.
“We submitted our empowerment plan within the stipulated time frames and our proposal was based on existing agreements with the Government but with a slant towards empowering communities, employees and other indigenous players in our activities.

“We understand that the Government is still considering our plan. While we have read some reports in the media about the purported goings-on regarding these empowerment plans, we believe it would be inappropriate for us to comment on media reports,” he said.

Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere recently said most of the indigenisation compliance proposals submitted by the mines were “inadequate”.
However, foreign-owned miners have been given until September 25, 2011 to submit their empowerment plans.

But while the discussions with the Government are underway, Zimplats is forging ahead with its efforts to widen the participation of indigenous suppliers in its operations.
A substantial amount of Zimplats’ supplies are now being sourced from indigenous companies.

Previously only US$5 million out of the US$42 million paid to suppliers last year went to indigenous suppliers.
To date indigenous suppliers have pocketed US$37 million out of the US$152 million paid to local suppliers, representing a 33 percent increase from the prior year.