Zimplats H1 net profit up 604 pct on higher sales volumes

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By the Source on February 27, 2014. No Comments

Zimbabwe Platinum Mines (Zimplats) on Thursday reported a net profit of $32 million for the six months to December 2013, a 604 percent jump as it rebounded from a $6 million loss in the same period of 2012, driven by a leap in metals sales volumes following the commissioning of a second concentrator module at Ngezi last year.

Zimbabwe’s largest mining firm, 87 percent owned by South Africa’s world number two producer Impala Platinum, saw its revenue increasing by 51 percent to $267 million in the period under review, on the back of a 62 percent bump in platinum sales volumes. However, the volume sales growth was tempered by a 7 percent decrease in gross revenue per platinum ounce, to $2,342, reflecting softer metal prices over the period.

The increased production volumes, along with higher power costs, also drove total operating expenses 52 percent higher, to $221 million, compared to the same period of 2012, Zimplats said.

The company held $17 million in cash at the close of the half year, while borrowings – which are due in December 2017 and whose staggered payments are not due until January 2015 ­­­– amounted to $105 million.

Zimplats said its Mupfuti underground mine is on schedule to reach design production in early 2015