HomeEconomyZimplats posts US$6 million quarterly profit

Zimplats posts US$6 million quarterly profit

THE local unit of South Africa’s Impala Platinum has reported a US$6 million operating profit for the quarter ending September from a loss of US$35 million recorded in the preceding quarter driven by growth in sales and cost cuts.

Zimplats said revenue, at US$108 million was up 67% from previous quarter’s figures. This came on the back of increased output.

Ore mined improved by 10% from the previous quarter largely due to an increase of 117 400 tonnes in ore mined from the open-pit operation. Production from the underground mines increased by 32 900 tonnes compared to the previous quarter.

“Revenue increased by 67% from the previous quarter due to the net effect of a 93% increase in 4E sales volume and a drop in metal prices. Direct operating costs were 24% higher than the previous quarter due to the increase in overall sales volumes, the company said in a report for the period under review.

“Local spend in Zimbabwe (excluding payments to government and related institutions) for the quarter decreased by 4% to US$44 million and total payments to government in direct and indirect taxes did not change from the US$7 million reported in the previous quarter.”

Cash cost per 4E ounce decreased by 32% from the previous quarter largely due to the 88% increase in 4E metal in converter matte production, the company said.-Staff Writer

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