Zimplats Q2 profit up 69pct to $40,8mln

Zimplats Q2 profit up 69pct to $40,8mln

HARARE, February 1 (The Source) – Zimplats reported a 69 percent increase in profit from operations to $40,8 million in the second quarter to December from $24 million last, driven by an increase in sales and firmer prices.

Revenue was up 80 percent to $184million as 4E sales surged 73 percent to 170, 724 ounces.

The basket price of 4E metals was up 4 percent during the quarter while cash costs per 4E ounce increased 15 percent to $704.

“Net operating costs increased by 84 percent compared to the previous quarter largely due to the increase in 4E sales volumes, an increase in selling expenses arising from the export of concentrate stockpiled in the previous quarter and an increase in smelter costs in line with increased running time,” the company said in a quarterly update.

Zimplats said it had spent $46,8 million out of a $101 million budget in the redevelopment of its Bimha Mine which collapsed in 2014. The mine is on schedule to reach full production in April 2018, it added.

“The development of Mupani Mine (the replacement mine for Ngwarati and Rukodzi mines) remains on schedule, targeting ore contact by May 2020 and full production in August 2025. A total of $20.1 million had been spent on the project as at 31 December 2017 against an approved total project budget of $264 million.”