ZIMPLATS Holdings posted a profit before royalties of $9,5 million for the quarter ended March 2015 driven by a surge in revenue.
In the quarter ended December, the group had recorded a loss before royalties of $13,7 million.
Operating profit was $6,8 million in the quarter ended March 2015 from a loss of $20,5 million in the quarter ended December 2014.
“Revenue increased by 10% from the previous quarter due to a 4% in 4E sales volumes and a 5% improvement in the gross revenue per 4E ounce sold. Direct operating costs increased by 11% in line with the higher production,” the company said.
4E refers to platinum, palladium, rhodium and gold.
Revenue for the group stood at $110,2 million compared to the December quarter which stood at $100,6 million.
Tonnes milled decreased by 12% from the previous quarter due to lower mining volumes, resulting in an 11% decrease in 4E metal production in concentrate.
“Cash cost per 4E ounce increased by 8% from the previous quarter largely due to increased support costs at Mupfuti Mine as a result of mining across a major fault as well as higher cost of production for ore mined during reef development at Bimha Mine. The previous quarter cash cost was also low due to the release of metal locked up in the system, which resulted in metal in converter matte produced being higher than the metal in concentrate produced,” Zimplats said.
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“During the quarter, local spend in Zimbabwe (excluding payments to government and related institutions) decreased by 10% to $46 million and total payments to government in direct and indirect taxes decreased by 31% to $9 million compared to the previous quarter, mainly due to a reduction in royalties (now payable at the mining agreement rate).”
During the period under review, total ore mined stood at 1 244 tonnes for the March quarter compared to 1 152 tonnes in December while ore milled was 1 263 tonnes during the period under review compared to 1 163 tonnes during the December quarter. “Tonnes mined increased by 8% from the previous quarter due to the 43 000 tonnes of ore from the Bimha Mine redevelopment and a 14% production increase at Mupfuti Mine. The stripping of bulk waste at the Open Pit Mine progressed well with the first ore expected early in the fourth quarter.
“Head grade (4E) decreased by 1% from 3,25g/t to 3,23g/t due to dilution from mining access drives at Bimha Mine and two major faults with reef displacement which were intersected at Mupfuti Mine. Tonnes milled increased by 9% from the previous quarter due to improved ore supply resulting in an 8% increase in 4E metal in concentrate produced,” the company said.
During the period under review, metal recovery rate 4E remained largely unchanged from the previous quarter while metal sales increased by 4% to 104 608 ounces from 100 443 ounces.