Zimplats quarterly revenue down seven percent
ZIMPLATS revenue for the quarter ended 30 June 2016 decreased seven percent to US$128 908 million from previous quarter’s US$138 477 million largely on lower 4E sales volumes.
“Revenue decreased by seven percent from the previous quarter owing to the effect of lower 4E sales volumes, which decreased by 19 percent as stockpiled concentrates (41 757 ounces of 4E) were exported in the earlier period, partially offset by higher metal prices,” Zimplats said in its quarterly update.
The platinum giant says total revenue per 4E ounce increased 16% in the quarter, while operating costs decreased 22 percent to US$100 066 million compared to US$128 386 million in previous quarter mainly due to the lower sales volumes.
Royalties paid to government were five percent lower than the previous quarter at US$3, 210 million which the company says was in line with the decrease in revenue.
Meanwhile, production of 4E metal in converter matte rose four percent to 142 148 ounces from the previous quarter level of 136 499 ounces due to longer running times at the smelter, as well as the draining of furnace inventory in preparation for the matte-end wall rebuild shutdown.
Tonnes mined improved two percent to 136 499 from the previous quarter due to an 8% increase in tonnage from the Mupfuti Mine as well as sustained operational performances across all the other mines.
Head grade (4E) at 3.24g/t was maintained at the previous quarter levels as the Company continues to implement initiatives directed at improving head grade.
Milled ore volumes and 4E metal in concentrate throughput were also maintained at the previous quarter levels.
Cash cost per 4E ounce increased 10 percent to US$612 from the previous quarter at US$558 largely due to the lower sales volumes as stockpiled concentrates boosted sales in the previous quarter.
The Group’s spend in Zimbabwe excluding payments to government and related institutions for the quarter increased significantly by 79 percent to US$92 million, while total payments to government in direct and indirect taxes increased to US$42 million from US$7 million reported in the previous quarter.
The Company says implementation of the Ngezi Phase 2 expansion project is progressing well and a total of US$453 million of the project budget had been spent as at 30 June 2016.
A total of 22,1 million was spent on the refurbishment of the Selous Metallurgical Complex base metal refinery and US$1 million was committed as at 30 June 2016.
Zimplats says the redevelopment of Bimha Mine remains on schedule to reach full production in April 2018, adding that some capital projects amounting to US$59 million that were planned to be implemented in the year to 30 June 2016 were deferred to future periods due to cash constraints arising from the soft metal prices.
On other hand, the Group says it remain in discussion with the relevant authorities in Zimbabwe on the $34 million debt owed by the Reserve Bank of Zimbabwe (RBZ). FinX
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