Mimosa Q3 revenue flat, production down 8pct

Mimosa Q3 revenue flat, production down 8pct

HARARE, April 28 (The Source) – Platinum miner Mimosa’s revenue for the third quarter ended March 31 remained flat at $32 million despite a six percent dip in production.

During the quarter the company achieved 57,391 PGM ounces in line with the reduced milling volumes.

South African miner Aquarius Platinum, the largest platinum producer in the world, said Mimosa recorded an EBITDA profit attributable to it of $8 million and a net profit before tax of $1,8 million for the quarter.

“Mimosa is in discussions with the authorities to have royalties deemed deductible for tax purposes. The tax liability relating to the non- deductibility of royalties as at March 2015 (on a 100 percent basis) was $7,7m ($4,2m prior year and $3,5m current year),” the company said in a trading update on Tuesday.

“The liability has been accrued in the financials awaiting the finalisation of negotiations with the authorities and any legislative amendments.”

For the period under review, cash held in Mimosa was $25 million.

Cash costs for the nine months to March were eight percent compared to the prior period but were two percent higher on a quarterly basis.

Costs were maintained below $800 per PGM oz for the second consecutive quarter while head grade improved slightly to 3.65 grammes per tonne.

Average PGM basket price was however seven percent lower than the previous quarter at $1,036.

Aquarius said the three platinum producers in Zimbabwe – the others are Zimplats and Unki – are continuing their engagement with the government to resolve the impasse on the 15 percent tax on the export of unrefined platinum which was introduced in January.

“Although not yet resolved Aquarius is satisfied with progress made to date and remain optimistic that the matter will be resolved in due course,” the miner said.

Mimosa is a joint venture between Aquarius and Impala Platinum (Implats).