Harare - Impala Platinum’s Zimbabwe subsidiary Zimplats on Friday said revenues for the quarter to June had tumbled by 41 percent despite a 19 percent increase in ore mined as Zimbabwe miners battle uncertainty in the country.
Finance Minister Patrick Chinamasa said last week that the platinum miners had submitted “time framed” reports on their intentions to meet mineral beneficiation demands. “I am pleased to note and report that the respective mining houses, boards and shareholders – notably Unki, Mimosa and Zimplats – have made specific commitments,” said Chinamasa.
However, mining industry executives have said that the statement does not remove the uncertainty that platinum miners in Zimbabwe are facing over government demands that they set up a refinery.
Zimplats said ore mined during the quarter period under review had increased by 19 percent to 1 480 000 tons.
This was after its new open pit mine contributed 105 693 tons as well as increased productivity from the other underground mines.
Revenues for the period had, however, declined by 41 percent to $64.6 million (R817.70m) despite the mining increase, leading to a loss position of $31m before royalties for the period.
The decline in the company’s revenue position has been attributed to “a 35 percent decrease in platinum sales volumes and a drop in the metal prices,” according to a statement posted on Friday.
Taxed
Payments to the government in direct and indirect taxes decreased by 18 percent to $7m compared to the previous quarter “due to a reduction in royalties”. Its plight was worsened by a 12 percent increase in cash costs per platinum ounce which shot to $887 per ounce.
The company had also provisioned for retrenchment costs during the period as Zimbabwean companies move in to severe ties with workers to survive current turbulent times.
“Redevelopment work at Bimha mine (which collapsed last year) is progressing well with 87 000 tons of ore mined from the access drives and access points in the quarter. The project is on schedule to reach full production in April 2018,” Zimplats said.
Refurbishment
Zimplats is lining up a fully developed Mupfupi mine, which is now scheduled for completion next year. Implats has also previously said that it is investing heavily into refurbishment of its smelter facility, which would be expanded at a later date to treat feed from other platinum producers in Zimbabwe.
Frost and Sullivan said on Friday morning that mineral beneficiation was a growing demand from most African countries.
Zimplats said on Friday that refurbishment of its refinery facility was progressing well.
Zimbabwean mines have continued to show their commitment to safety measures, with Zimplats recording no fatalities and zero lost time injuries during the review period.
BUSINESS REPORT