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THE country’s largest platinum producer, Zimplats Holdings Limited has spent $36 million on the redevelopment of its Bimha Mine which was closed in August 2014, as it seeks to boost revenues in the wake of fluctuating global prices of commodities. Average prices of platinum and nickel fell 4 percent and 10 percent respectively in during the quarter to June 2017, compared to previous quarter. Palladium, rhodium and gold were however, higher by 7 percent, 12 percent and 3 percent respectively.
Bimha Mine is Zimplats’ biggest mine out of four other mining units in Ngezi. The mine was shut down as a precautionary measure following the partial collapse of the mining footprint in July 2014 due to regional instability induced by the geological Mutambara Shear.
In an update for the quarter to June 2017, Zimplats indicated the redevelopment of the mine was still on course.
“The redevelopment of Bimha Mine remains on schedule to reach full production in April 2018. A total of US$36 million had been spent on the project as at 30 June 2017 against an approved total project budget of US$92 million,” said Zimplats.
Additionally, Zimplats said the development of Mupani Mine (the replacement mine for Ngwarati and Rukodzi mines) was on schedule, targeting ore contact by May 2020 and full production in August 2025. A total of US$11 million had been spent on the project as at 30 June 2017 against an approved total project budget of US$264 million.
Meanwhile, Zimplats’ revenue for the quarter to June 30, 2017 rose 9 percent to $143 million on the back of a 17 percent increase in four elements (4E) production.
Four elements comprise of platinum, palladium, gold and rhodium. In line with the revenue increase, royalties were also 9 percent higher than the previous quarter. However, gross revenue per 4E ounce decreased by 5 percent compared to the previous quarter.
Tonnes mined and milled in the quarter rose by 10 percent 18 percent respectively compared to the previous quarter.
Profit from operations after royalties decreased by 28 percent to US$30,3 million from US$42,2 million reported in the previous quarter. Net operating costs increased by 28 percent in comparison to the previous quarter largely due to the 16 in increase in sales volumes (4E).
The net operating expenses for the previous quarter benefited from the $8 million recognised in relation to the previously written off Reserve Bank of Zimbabwe (RBZ) debt. Zimplats is 87 percent owned by South Africa’s Impala Platinum (Implats).
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