Zimplats suffer US$74m loss
ZIMPLATS suffered a US$74,3 million loss in the full year to June 30, 2015 compared to a US$97,1 million profit during the same period last year due to lower metals prices and depressed sales volumes.
Despite the loss, Zimplats, a local unit of South Africa’s Impala Platinum Holdings (Implats) declared a final dividend of US$13 million, equating to 12,08 cents per share.
During the period under review, operating cash cost per platinum ounce for the year increased by 18 percent from US$1,319 in the prior year to US$1,551 mainly due to the impact of the lower production volumes on fixed costs.
At year-end, the miner had bank borrowings amounting to US$82 million and a cash balance of US$73,5 million.
“Cost of sales of US$316 million was five percent lower than the previous year’s US$332 million mainly due to the decrease in sales volumes which was partly offset by higher costs associated with underground roof support in bad ground areas,” said Zimplats.
Administrative expenses for the year at US$44,1 million were marginally higher than the US$43,8 million reported in the previous year.
Revenue during the year was down 29 percent to US$408 million as platinum, palladium, rhodium and gold (4E) sales volumes fell from 477 905 ounces to 381 849 ounces during the year.
Gross profit margins deteriorated from 42 percent in the prior year to 23 percent in the current year due to lower metal prices and the impact of lower production and sales volumes on fixed costs.