HARARE, September 1 (The Source) – Zimplats has reported net earnings of $7 million, from an annual loss of $74 million last year, driven by an increase in sales volume of more than 50 percent.
Sales volumes for the platinum group metals (4E — platinum, palladium, rhodium and gold) grew by more than 50 percent from 381,849 ounces to 582,833oz in the full year to June 30, driving revenue up 16 percent to $471 million.
The increase in volumes resulted in improved operating cash cost per platinum ounce from $1,551 previously to $1,197.
“It is a small amount but it is a positive development coming from a big loss in the previous year,” said chief executive Alex Mhembere after presenting the results on Wednesday.
The prior year results were negatively affected by the write-off of assets worth $38,5 million after a section of its Bimha Mine collapsed.
Metal prices during the year were however lower with gross revenue per platinum ounce declining from $2,167 to $1,638.
Cost of sales increased from $316 million last year to $391 million as selling and distribution expenses more than doubled to $5,2 million largely due to the sale of concentrates which attract higher transport charges.
Administrative expenses however, fell from $41,8 million to $35,9 million after several cost containment initiatives.
The miner also received a 2.5 percent export incentive from the Reserve Bank of Zimbabwe (RBZ), on export proceeds received in Zimbabwe for the month of May amounting to $1,1 million.
The central bank introduced an export incentive scheme in May to promote the export of goods and services to enhance inflows of foreign currency. These will will be paid out in ‘bond notes’, which will be introduced in October.