PLATINUM producer Zimplats reported an 11% drop in the June quarter revenues from US$128,21 million to US$114,43 million in March. Performance was also 22% lower than the corresponding June quarter last year.
In a statement accompanying the company’s financial results, the group said its financial performance did not mirror a 13% increase in volume of metals sold due to depressed metal prices, with gross revenue per ounce of the group’s metals 21% lower than the previous quarter.
Mining production was 4% above the previous quarter. Head grade was, however, 2% lower than the prior quarter owing to poor ground conditions encountered in some sections of the mines, the company said.
Tonnage milled was 8% higher than the previous quarter due to improved plant availabilities in contrast to the previous quarter when plant running time was affected by major plant maintenance shutdowns.
Platinum Group Metals in matte production was 11% above the previous quarter in line with the higher milled tonnage, while the smelting of concentrates stockpiled in the previous quarter when the smelter was down for scheduled periodic maintenance.
Operating profit was down 52% in the period to US$24,884 million from the March’s US$51,855 million. The amount is also a 62% fall from the comparable June quarter in 2011.
Operating costs were 17% above the previous quarter in line with the higher sales volume.
In addition, the first tranche of US$3,3 million was paid to the Community Share Ownership Trust in terms of an undertaking to make US$10 million available to the trust over a three year period.
The group said royalties continued to be accounted for at higher rates set in terms of the Finance Act whilst the company awaits resolution of the dispute currently before the courts.
The company’s local spend (excluding payments to government and related institutions) was at US$65 million or 54% of total payments.
Zimplats’ US$23 million contribution to the fiscus, in direct and employee taxes, for the quarter was 25% lower than the previous one mainly due to lower royalties following the full payment of the disputed royalties in May 2012 as well as the weakening of metal prices.