Zimplats back in the black, reports $6mln profit in Q3

Zimplats back in the black, reports $6mln profit in Q3

HARARE, October 30  (The Source) – Zimbabwe’s largest platinum miner Zimplats swung to a profit of nearly $6 million in the quarter to September from a loss of $32 million in the previous quarter after nearly doubling sales of platinum group metals (4E), the company reported on Friday.

Revenue during the quarter surged 67 percent to $108 million but direct operating costs shot up 24 percent.

Cash costs per 4E ounce fell 32 percent from the previous quarter largely due to an 88 percent increase in matte production.

“In addition, management commenced a cost rationalisation exercise in the quarter in response to the declining metal prices,” said Zimplats.

4E sales grew by 93 percent to 131,476 ounces.

Ore mined increased improved by 10 percent from the previous quarter largely due to an increase of 117,400 tonnes in ore mined from the open-pit operation.

Production from the underground mines increased by 32,900 tonnes compared to the previous quarter.

Local spend in Zimbabwe for the quarter decreased by four percent to $44 million while total payments to government in direct and indirect taxes were flat at $7 million.

The company said redevelopment of its Bimha Mine was progressing well and on schedule to reach full production in April 2018 as planned.