Zimplats Q3 profit doubles to $42mln

Zimplats Q3 profit doubles to $42mln

HARARE, April 26 (The Source) – Zimplats on Wednesday said net profit more than doubled to $42,2 million in the three months to March 31, from $20,6 million in previous quarter.

Revenue dropped six percent from $139 million to $131 million. The miner benefitted from a reversal of impairment on a long term receivable of $8 million.

During the period Zimplats received $5,3 million in export incentives compared to $2,2 million achieved in the last quarter.

Net operating costs narrowed by 26 percent from $115 million in the previous quarter to $85 million.

Production of 4E (platinum, palladium, gold and rhodium) during the quarter marginally increased to 135,831oz from 135,236oz.

Sales for 4E metals weakened marginally to 132,253oz from 133,978oz. Nickel sales marginally increased from 1,167 tonnes to 1,196 tonnes and copper sales increased to 917 tonnes from 885 tonnes.

Cash costs per 4Eoz at $612 were two percent higher than $600 in the previous quarter.

In the comparative period, the price of platinum rose by four percent to $981/ oz, palladium went up 12 percent to $766/oz and rhodium increased by 21 percent to $849/oz, which resulted in 22 percent drop in 4E metal sales volumes.

However, gold price remained flat at $1,219/oz and nickel price dropped by five percent to $10,274 per tonne from $10,804/tonne.  

Royalties narrowed by four percent to $3,2 million from $3,4 million in the previous quarter. Total payments to government in direct and indirect taxes fell to $10 million, from $11 million in the previous quarter.