Zimplats to focus on beneficiation as profit drops | Fin24
 
  • Data Market Inquiry

    MTN says it is prepared to defend itself before Competition Tribunal over report.

  • Claims of sabotage

    What we know so far about allegations of sabotage at an Eskom power station.

  • Dudu Myeni

    Court dismisses former SAA chiar's bid to have Outa withdraw from delinquency case.

Loading...

Zimplats to focus on beneficiation as profit drops

Aug 31 2015 14:39
Memory Mataranyika

(Shutterstock)

Company Data

IMPALA PLATINUM HOLDINGS LIMITED [JSE:IMP]

Last traded 138
Change -1
% Change 0
Cumulative volume 7850525
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Low international prices hit Zimplats earnings

Zimplats soars despite rising costs

SA miners in Zim encounter headwinds

Zimplats slips on low prices and mine closure

Mine expansion plans in Zim under threat

SA-owned Zim mine on course for platinum refinery

 

Harare - Zimplats, the Zimbabwean unit of world number two platinum producer Impala Platinum (Implats) [JSE:IMP], announced on Monday that softer commodity prices, increased taxation and lower mineral sales volumes dragged the company to a 29% and 56% revenue and pre-tax profit decline for the full-year to June 30.

The miner is now focusing on mineral beneficiation to meet government expectations in Zimbabwe.

Zimbabwean President Robert Mugabe said in his state of the nation address last week that mineral beneficiation will boost the country’s economy. His Zanu-PF party has previous touted job creation and increased economic activity from the mineral beneficiation and value addition policy.

Zimplats said its refurbished refinery facility will produce a platinum group metals cake. The refinery refurbishment will be completed by mid-2016.

However, revenue generation and profitability for the year to June 30 had been subdued, it warned. Implats will release its June 30 year-end financials on Thursday, amid a commodities prices and market outlook analysts say is less bullish.

Zimplats, which is listed in Australia and majority-owned by Implats, said revenues for the period decreased to US$408m mainly due to a 20% drop in four elements (platinum, palladium, rhodium and gold) sales volumes from 477 905 ounces to 381 849 oz, and a 12% fall in gross revenue per platinum ounce to $2 167 arising from declining metal prices.

To offset production losses due to closure of the collapsed Bimha mine, Zimplats resuscitated its Ngezi open pit mine. During the year under review, the open pit mine contributed 105 692 tonnes of ore mined.

This helped to marginalise production losses for the period to 5.23 million tonnes, about 7% lower compared to the previous year. The platinum miner also incurred higher costs associated with underground roof support in bad ground areas, with gross profit margins declining from 42% in the prior year to 23%.

"However, by end of the financial year, the Group had managed to recover mining production volumes back to the installed milling capacity of 6.2 million tonnes per annum," Zimplats said.

Zimplats said taxation for the year stood at $130.5m, about 314% higher than the previous year mainly due to the impact of two court judgments relating to royalties and income tax disputes issued against the company.

“This resulted in loss after tax for the year of US$74.3 million compared to US$97.1 million profit recorded in the previous year,” it said.


NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote

Loading...