Zimplats in $6.7 million profit

Zimbabwe’s largest platinum miner, Zimplats, has reported a net profit of $6.7 million for the three months to March 31 from a $1.8 million loss in the previous quarter after revenue rose by nearly half.

Revenue grew 44 percent to $138.5 million from$100 million in the previous quarter after the company sold 136 575 ounces of platinum group minerals (4E) during the period, with 41 757oz coming from its stockpile.

“Revenue increased by 44% from the previous quarter mainly due to the export of stockpiled concentrates and a 6% increase in 4E converter matte sales volumes. In addition, there was a 4% increase in total revenue per 4E ounce sold,” said Zimplats in a trading update.

Compared to the same period last year, revenue was 26 percent higher. Profit after royalties was one percent down on the $6.766 million achieved last year.

Operating costs rose by 28 percent in comparison to the previous quarter due to the increase in sales volumes while royalties increased by 41 percent from the previous quarter in line with the increase in revenue.

Cash cost per 4E ounce fell 10 percent from the previous quarter largely due to the higher production volumes and tighter cost control measures.

Zimplats said local spend in Zimbabwe, excluding payments to government and related institutions, dropped by a fifth to $52 million mainly due to the reduction in capital expenditure. Taxes dropped 12.5 percent to $7 million.-The Source

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