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Business Reporter
ZIMPLATS, the country’s largest platinum miner said its half year profit climbed 604 percent as sales volume gained due to an accelerated production ramp-up at its new underground mine (Mupfuti) and the commissioning of the second concentrator module.
Net income was US$32 million in the six months ended December 31, 2013 from US$6 million a year earlier, the Australian Stock Exchange-listed firm said in a statement yesterday.
Revenue increased by 51 percent to US$267 million although prices realised for the period under review were lower than those of the same period in 2012.
Zimplats sold 113 876 ounces compared to 70 225 ounces for the same period a year earlier. Tonnes mined rose 13 percent to 2,68 million.
“Three production fleets were introduced at Mupfuti Mine during the period, increasing production from the mine by 261 percent to 374 000 tonnes,” said Zimplats. Zimplats is currently operating four mines namely Mupfuti, Rukodzi, Bimha and Ngwarati.
The development of Mupfuti Mine remains on schedule to reach design production early next year.
Production at Bimha was lower than the same period last year due to a shear zone in the southern section of the mine which is affecting ground stability through pillar scaling and footwall heaving. Short-term contingency plans are being implemented to manage the shear zone while working on the long-term stabilisation plan.
Operating expenses increased by 52 percent to US$221 million for the same period last year mainly due to increased production volumes and higher electricity costs.
Cash cost per platinum ounce decreased by 10 percent to US$1 346 due to the 62 percent increase in platinum production. As a result, profit excluding non operating items increased 186 percent to US$46 million from US$16 million a year earlier. Zimplats had a cash balance of US$17 million and long-term borrowings of US$105 million with final maturity of December 31, 2017 with staged payments starting 2015.
Metal prices maintained a downward trend during the period under review but the current price forecasts are showing a gradual improvement, said the platinum group.
On the indigenisation plan, Zimplats said the Government implementation is still work in progress and stakeholders will be advised “if there is a material development”.
Impala Platinum, which owned 87 percent of Zimplats and is the world’s biggest producer of the metal after Anglo American Platinum Ltd, agreed with Government on terms to sell its 51 percent shareholding in Zimplats under the empowerment laws.
Impala also agreed to sell its turnover of the majority shareholding of Mimosa Mining Company, another local platinum company which it co-owns with Aquarius Platinum.
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