Anglo-American Platinum’s Zimbabwe unit Unki Mine produced a record 165 900 platinum group mineral ounces in 2017, an increase of two percent from 162 000oz last year.
The world’s largest platinum producer said it expects to complete the smelter at Unki in the second half of this year at a total cost of $55.7 million (R650 million), with $26.2 million of the project cost incurred in 2017.
The Zimbabwe government wants major mining companies to build refineries in the country and proposed a 15 percent tax on raw platinum exports in 2013.
The tax was supposed to come into effect in January 2015 but was pushed to a later date to allow the miners time to set up the facilities.
Unki’s platinum production was relatively flat at 74 600 ounces while palladium production increased 5 percent to 64 400 ounces from 61 400 ounces in the previous year.
Net sales increased to R2.49 billion from R2.23 billion in the previous year.
The miner earned $5.4 million (R63 million) in export incentives as free cash flows increased to $51.5 million (R600 million) from $5.2 million (R61 million) due to improved performance and the sale of Treasury Bills of $19.6 million (R228 million).
Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at R800 million at a 33 percent margin, up from 12 percent in 2016.
Cash operating costs were flat at $154.4 million (R1.8 billion.)
Unit costs declined by 3 percent to $2 000 (R23 387) per platinum ounce from $2 071 (R24 151) in the previous year.
Total PGM production from Unki in 2018 is expected to be around 170 000oz. –The Source
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