Maravi

(TALKZIMBABWE) Zimplats posts US$21m profit

Zimplats posts US$21m profit
SN.
Wed, 11 Nov 2009 04:13:00 +0000

PLATINUM concern, Zimplats performed better in the third quarter than in the previous one posting a US$21 million operating profit which it attributed to the recently commissioned Ngezi concentrator ramping up to full production capacity.

In its report for the quarter ended 30 September 2009, the company said the concentrator that was successfully commissioned in July this year milled a tonnage that was 61 percent above the previous quarter.

“4E mill grade was lower than the previous quarter due to grade dilution arising from the milling of lower grade open pit ore from the stockpile. 4E recovery at 80,6 percent was 4 percent below the previous quarter due to a reduction in mass pull in line with smelter capacity constraints and the ongoing process optimisation at the recently commissioned Ngezi concentrator,” the report said.

The report said 4E metal production and sales were 51 percent and 47 percent higher than the previous quarter respectively.

The company said the profits were made in a safe environment with only one lost time injury recorded during the quarter.

“Overall safety performance was, however, satisfactory and the company celebrated a milestone achievement of 2 million fatality free shifts,” the report said.

The company said the ramping up of underground production continued and as a result total ore mined was 18 percent higher than the previous quarter.
“The ore stockpile at the end of September was 838 000 tonnes,” it said.

The company said revenue was 47 percent higher than the previous quarter in line with the increase in sales volume.

It said despite 4E metal production and sales increasing by 51 percent and 47 percent respectively, operating costs for the quarter increased by 12 percent only.

“This is a reflection of both an increased focus on cost management as well as the impact of processing a higher proportion of lower cost underground ore. While the continued strengthening of the South African rand impacted negatively on operating costs, this was somewhat abated by the removal of import duties on goods manufactured within the SADC region,” the report said.

The company said investor activity and the Chinese jewellery market demand have seen a further upward movement in prices since the end of the quarter.

The company said although there were problems in the inclusive Government, the atmosphere created by the setting up of such a political arrangement had benefited business well.

“Zimbabwe has continued to enjoy political and economic stability despite strained relations between the coalition partners in the Unity Government.

"However, the troubled relations between the coalition partners are a set back to the process of rebuilding investor and international community confidence without which economic recovery cannot succeed,” the company said.

Labels: PLATINUM, ZIMPLATS

posted by MrK @ 5:24 AM