Zimplats quarterly profit falls 65pct to $26mln

Zimplats quarterly profit falls 65pct to $26mln

HARARE, August 1 (The Source) – Zimplats has posted a profit of $25,6 million in the quarter to June, 65 percent down of the same period last year despite higher sales volumes as prices remained low and costs increased.

On a quarterly basis, Zimplats trebled the $6,7 million profit for the period to March, 2016.

Revenue nearly doubled to $129 million compared to $65 million last year but was seven percent lower than the first quarter to March this year figure of $138,5 million.

Sales of 4E — platinum, palladium, Rhodium and gold — at 143 647 ounces were 110 percent higher on the Q2 2015 figure of 68,255oz and five percent higher on the first quarter of 2016, boosted by the stockpiled concentrates.

In the quarter under review, platinum prices averaged $1,004/oz, 11 percent lower over the same period last year but 10 percent higher than the previous quarter to March.

Net cash cost per 4E ounce were 31 percent lower on the prior year period but 10 percent higher quarter on quarter at $517.

Operating costs fell by 22 percent to $100 million from $128 million in the prior quarter.

Local spending in Zimbabwe — excluding payments to government and related institutions — increased by 79 percent to $92 million with total payments to government in direct and indirect taxes up to $42 million from $7 million in March.