adminmaintenance shutdown at its furnace.
Zimplats is 87 percent owned by South African-based Impala Platinum.
Zimplats said output of platinum group metals in concentrate had declined to 90 822 ounces compared to 103 874 ounces during the previous quarter.
“The furnace was down for five days for scheduled maintenance.
“The 4E metal production was thus 13 percent below previous quarter in line with the lower mill and furnace throughput,” said Zimplats in a statement.
The platinum miner said a 60 percent rise in electricity tariff on September 1 was higher than expected and would increase production costs in future.
During the period under review, metal prices were comparably weaker than previous quarters due to market concerns over
economic stability of some Euro-zone countries.
Revenues during the period amounted to US$133 million, 9 percent below the previous quarter, due to lower sales volumes.
Operating costs were 6 percent lower than in the previous quarter in line with lower production and sales volumes.
Operating profit declined by 12 percent to US$61 million, mainly due to the lower revenue.
The company also says it is on track to submit to the Government a revised local ownership plan this month.
Zimplats’ initial indigenisation compliance proposal was rejected in September.
Earlier last month, the platinum miner announced that local communities would acquire a 10 percent stake in the company as part of local empowerment compliance measures.
The Zimplats Community Share
Ownership Trust, which will acquire 10 percent of the operating subsidiary’s issued share capital was officially launched by President Mugabe and is expected to benefit the Mhondoro-Ngezi, Chegutu and Zvimba communities.
Meanwhile, the company’s local spend (excluding payments to Government and related institutions) increased from 48 percent of total expenditure in the year ended June 2011 to 52 percent in the quarter to September 2011.
Zimplats has paid US$16 million in direct and indirect taxes to the fiscus, 19 percent higher than the prior quarter.
Online Reporter