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Zimplats nets $21 million profit in six months

Zimplats reported a 30 percent increase in net profit to $21 million for the six months to December, 2017 from $16.2 million in the comparable period last year buoyed by higher prices.

Revenue increased by 20 percent to $286.1 million due to higher average metal prices. The gross revenue per platinum ounce increased by 21 percent to $2 154 from $1 775 reported during the same period in the previous year.

Platinum production marginally increased to 136 152 ounces from 135 824 ounces in the comparative period while 4E metal production increased to 275 224 ounces from 273 905 ounces due to higher mills throughput.

Gross profit margin improved to 36 percent compared to 25 percent in the prior period.

Cash operating costs per platinum ounce rose 11 percent to $1 331 from $1 197 reported in the same period in the previous year due to the increase in selling expenses and higher prices of some consumables sourced from South Africa which were affected by the appreciation of the South African Rand against the US dollar.

Administrative expenses increased by five percent to $23 million from $22 million.

The miner received an export incentive of $5.6 million in the period compared to $6.6 million in the same period in the previous year.

Capital expenditure stood at $32.4 million compared to $25.1 million spent during the same period last year.

Mupani mine, which is going to replace the Ngwarati and Rukodzi mines which are nearing depletion, is expected to reach full production by August 2025, with a total of $20.1 million having been spent so far.

“The development of Mupani Mine 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 estimated total project cost of $264 million,” the company said in a statement.

Additionally, the redevelopment of Bimha Mine is expected to reach full production in April 2018, with a total of $46.8 million being spent on the project as at December 31, 2017 against an approved total project budget of $101 million. – The Source

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