daniel chigunwe
Oliver Kazunga
Business Writer
ZIMBABWE’S largest platinum miner Zimplats has reported a 20 percent decrease in revenue, for the financial year ended June 30, 2024, as avegare metal prices softened during the period.
In its latest report, the PGM miner said revenue for FY2024 decreased to US$767,1 million from US$962,3 million prior year comparative.
Gross revenue per six elements (6E) ounce sold (including the revaluation of pipeline debtors) also declined by 20 percent to US$1 196 compared to (FY2023: US$1 595).
The 6E are platinum, palladium, rhodium, ruthenium, iridium, and gold.
However, sales volumes increased by six percent to 641 000 6E ounces, benefiting from higher production in the period (FY2023: 603 000 6E ounces).
During the year under review, cost of sales increased by 5 percent to US$684,7 million (FY2023: US$651,9 million) primarily due to increased production and sales volumes and a higher depreciation charge, moderated by several cost containment initiatives implemented in the period.
Operating unit cash costs decreased by 1 percent to US$829 per 6E ounce (FY2023: US$836 per 6E ounce) benefiting from cost containment initiatives.
Achieved gross profit margins were negatively impacted by lower revenue and contracted to 11 percent (FY2023: 32 percent), while foreign exchange losses increased to US$35,8 million (FY2023: US$17,2 million) driven by depreciation of the Zimbabwean dollar (ZWL) against the United States dollar from ZW5 769 as at the end of June last year to ZW33 904 on 5 April this year.
“Resultantly, profit before tax declined to US$37,6 million from US$286,8 million in the financial year ended June 30, 2023.
“Income tax expense at US$29,4 million was mainly driven by an increase in deferred tax expense of US$17,2 million following the change in corporate income tax rate from 24,72 percent to 25,75 percent.
“Profit after tax fell to US$8,2 million against US$205,5 million in the financial year ended June 30, 2023,” said Zimplats.
Meanwhile, mined volumes in the year under review improved by five percent to 7,9 million tonnes benefitting from increased production volumes from the replacement mines.
Mined grade was negatively impacted by an increase in lower-grade development tonnages from Mupani Mine and dilution caused by traversing geological structures at the other mines, resulting in a 1 percent decline in the achieved 6E head grade to 3,32grammes per tonne.
Notable production gains were achieved across the operation with a six percent and 20 percent increase in volumes mined at Bimha and Mupani mines respectively as these operations ramped up to design capacity.
“Volumes at Mupfuti Mine declined by 4 percent in the period negatively impacted by trackless mining machinery availability.
“Production from Ngwarati Mine reduced by 20 percent, as the mine’s primary operations were depleted with operations ceasing in June 2024.
“The pillar reclamation at Rukodzi Mine contributed 5 percent of total ore mined in FY2024, whilst ground conditions remained stable,” said Zimplats.
Bongani Ndlovu