Zimplats in record breaking revenue performance

Oliver Kazunga, Senior Business Reporter
ZIMBABWE’S largest platinum miner, Zimplats, has achieved a record revenue breaking performance amounting to US$1,4 billion in the 2021 financial year with tax contributions and royalties amounting to US$404,6 million.

In an integrated annual report for the financial year ended June 30, 2021, which has just been released, the platinum mining giant said its operational and financial performance for the period under review translates into tangible shared value for stakeholders.

“The group achieved record breaking revenue performance of US$1,4 billion and made significant contribution to national taxes and royalties amounting to US$404,6 million and notable foreign currency generation.

“The group’s performance has also enabled us to reward our investors and laid a sound base for the future growth and sustainability of the business,” said Zimplats.

During the year under review, Zimplats’ capital expenditure projects gobbled US$159,1 million, reflecting a 53 percent increase from US$104,2 million in the previous financial year.

“The group spent US$159,1 million on capital projects, including stay-in-business, replacement and expansion projects (FY2020: US$104.2 million),” said the platinum mining giant.

For stay-in-business projects, during the period under review, a total of US$75 million was spent compared to US$69 million in FY2020.

This includes expenditure on trackless and support equipment replacement, the Bimha Mine redevelopment, processing projects (including the Selous Metallurgical Complex feed preparation plant) and other projects.

“The redevelopment of Bimha Mine is largely complete, with cumulative spend of US$100,3 million in line with the estimated project budget of US$101 million,” said Zimplats.

During the year under review, Zimplats’ income tax expense increased to US$237,4 million (FY2020: US$112,4 million) on higher profitability.

“As a result, profit after tax increased to US$563,1 million (FY2020: US$261,8 million),” said the company.

“Net cash generated from operating activities increased to US$452,6 million (FY2020: US$258,4 million).”

Going forward, Zimplats was recently reported as planning huge investments totalling US$1,4 billion. The planned investment would see a new mine, local refining of platinum metals before export, a sulphuric acid plant and a 110MW solar power station being developed.

The envisaged investment programme was signed off before President Mnangagwa recently in the form of a Memorandum of Agreement with the Government that clears the path for the detailed regulatory approval that these investments will require.

It is hoped that the establishment of a base metal refinery by Zimplats, will be a huge step towards local mineral beneficiation and value maximisation dove-tailing with the National Development Strategy 1 objectives.

Presently, the platinum group metals are being exported as concentrates for refining in South Africa.

The refinery will handle output from the other platinum mines in Zimbabwe now also being refined outside the country.

The President has said the commitment by Zimplats was further evidence of the comfort that capital continues to flow into the Second Republic.

The investment by Zimplats and other mining companies also augurs well for the target to turn the mining sector into a US$12 billion industry by 2023.

So far, apart from the investments by Zimplats, the platinum mining sub-sector has a number of developments taking place, including extensive exploration, opening up of new mines as well as expansion of existing projects.

Such initiatives, the Government hopes will see the platinum sub-sector contribute about US$3 billion towards the target of a US$12 billion mining sector by 2023. — @KazungaOliver