adminpercent from US$97 million in the December quarter.
The company said it recorded an improved financial performance despite a 3 percent decrease in volume of metals sold.
“The lower sales volume was more than compensated for by improved metal prices as well as the resultant pipeline revenue adjustments,” said Zimplats in a statement.
Zimplats’ output for the quarter was adversely affected by an illegal industrial action by a section of the workforce, which resulted in two and half shifts of production being lost.
As a result, tonnes mined were 1 percent below the previous quarter. Metal production was 2 percent below previous quarter reflecting the net effect of 4 percent lower milled tonnage and 1 percent better head grade.
The company’s cost performance was good with operating costs 2 percent lower than the previous quarter. Royalties continue to be accounted for at the higher rates set in terms of the Finance Act while the company awaits resolution of the dispute which is currently before the courts. Zimplats reported that it received a total of US$151,6 million in the quarter from metal sales and loan draw-downs of which 36 percent was spent on operations, 37 percent on on-going capital expenditure projects, 20 percent was paid to Government and 7 percent was utilised to service debts.
The company’s local spend (including payments to Government and related institutions) increased by 6 percentage points to 69 percent of total payments in the quarter.
Its contribution to the fiscus, in direct and indirect taxes, at US$30,3 million was 40 percent higher than the previous quarter.
Zimplats also said following its agreement in principle with the Government over its indigenisation compliance plan, discussions are currently undergoing regarding finalisation of an implementation plan.
Meanwhile, the company also said there have been no further developments on the issue of the Reserve Bank of Zimbabwe debt.
Online Reporter