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ZIMBABWE Platinum Holdings (Zimplats) contribution to the fiscus in the quarter ended September 30, 2014 stood at $19 million, constituting 11 percent of the miner’s cash utilisation during the period.
The company’s contribution to the government remained flat at $19 million from the previous quarter.
However, there was a 21 percent decline in the company’s overall local spend.
“The main operating company’s local spend (excluding payments to the government and related institutions) decreased by 21 percent to $50 million due to reduced activity on the Phase II Project. Total payments to the government of Zimbabwe in direct and indirect taxes remained constant at $19 million,” said Zimplats.
During the period under review, most of Zimplats’ cash (63 percent) went towards operating expenses, a total of $102 million, while $24 million (or 15 percent) went towards capital expenditure to expand and maintain operations.
The balance of $19 million (11 percent) was taken up by employment costs. On a financial performance basis, the local platinum producer’s revenue decreased by 20 percent from the previous quarter due to a 17 percent decrease in 4E sales volumes and a four percent decrease in gross revenue received per 4E ounce.
Operating costs were 10 percent lower than the previous quarter due to lower production and sales volumes. Consequently, operating profit before royalties decreased by 37 percent from the previous quarter to $38,5million. Royalties decreased by 21 percent from the previous quarter due to the decrease in revenue.
As a result operating profit after royalties was 41 percent lower than the previous quarter.
In terms of production, the Bimha Mine closure affected output during the period under review (the Bimha Mine was closed in late August this year as a precautionary measure following the subsidence of ground and associated continued ground deterioration affecting largely the south section of the mine).
Zimplats’ tonnes milled decreased by 14 percent from previous quarter due to lower ore supply resulting in a 15 percent decrease in 4E metal in concentrate production.
The metal recovery rate (4E) was marginally lower decreasing by 1 percent from the previous quarter to 81,1 percent in line with the decrease in head grade.
Metal in converter matte decreased by 22 percent from 135, 696 ounces (4E) to 105, 667 ounces (4E) mainly as a result of the decrease in ore milled and lower mill grades.
Meanwhile, Zimplats says it awaits to hear from the courts over both the additional profits tax court case and the penalty on prior year income tax case, which are both before the Special Court for Income Tax Appeals. The former case was heard in the Special Court for Income Tax Appeals on September 15, 2014, but the Judge reserved judgment after hearing arguments from both parties. – BH24.
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