Zimplats increases revenue, progresses projects during the year
Zimbabwean platinum group metals (PGMs) miner Zimplats, in which JSE-listed Impala Platinum holds an 87% interest, achieved a net profit of $144.9-million for the financial year ended June 30.
This is significantly higher than the net profit of $2.6-million reported for the 2018 financial year.
ASX-listed Zimplats on Friday reported that its revenue for the financial year had increased by 8% year-on-year to $631-million, as a result of higher palladium, rhodium, ruthenium and iridium prices.
Platinum, palladium, rhodium and gold (4E) sales volumes increased marginally to 542 500 oz from 542 085 oz in the prior financial year.
Zimplats also benefited from an export incentive of $36.4-million, compared with an export incentive of $13.6-million for the prior year, and the recognition of a $9.6-million refund due from the Zimbabwe Revenue Authority.
It paid dividends of $85-million and repaid borrowings of $42.5-million during the year under review.
An interim dividend of $0.19 a share was paid to shareholders of record as at February 20.
Post year-end, Zimplats’ board of directors declared a final dividend of $0.42 a share.
OPERATIONAL
Both mining and milling operations performed well during the period.
Tonnes mined from the underground mines increased by 9% compared with the previous year, driven mainly by Bimha mine, which operated at design capacity throughout the year, and improved team productivity arising from the implementation of a successful team restructuring exercise.
The group’s 4E head grade, at 3.23 g/t, was marginally below that of the prior year, mainly as a result of dilution arising from faulting and the re-establishments at Ngwarati and Rukodzi mines, where mining is approaching the boundaries of the mine footprint.
This was partly offset by the replacement of low-grade South Pit mine ore with higher-grade underground ore.
Ore milled decreased by 1% to 6.5-million tonnes, mainly owing to lower milling rates achieved at the Selous Metallurgical Complex (SMC) concentrator, where ore particle size distribution changed adversely following the closure of the South Pit mine on March 31, 2018.
A high-pressure grinding rolls (HPGR) plant is being implemented at the SMC concentrator plant to address the effects of the change in ore particle size distribution on milling rates. The plant is scheduled to be commissioned in the first quarter of the 2020 financial year.
The overall 4E recovery rate and mass pull for the year were maintained at 81% and 2.1% respectively.
Owing to increased smelter operating time from the previous year, concentrate smelted increased by 4% to 125 167 t.
Total platinum produced for the year (including metal-in-concentrate dispatched) decreased marginally to 269 903 oz from the prior year’s 270 717 oz, mainly as a result of the decrease in milled ore.
4E metal production increased to 549 320 oz from the prior year’s 546 915 oz, mainly as a result of an increase in gold production to 32 555 oz from 29 207 oz in the prior financial year.
CAPITAL PROJECTS
Zimplats invested $115-million in capital expenditure during the year, compared with the $135.3-million invested in the prior financial year.
Of the total, $82.4-million was spent on stay-in-business projects.
Development of the Mupani mine, a replacement mine for the Rukodzi and Ngwarati mines, is progressing well and ahead of schedule.
The mine is scheduled to reach full production of 2.2-million tonnes a year in August 2025.
The SMC Base Metal Refinery refurbishment project remains on hold pending the finalisation of a national beneficiation roadmap.
Prefeasibility studies were carried out during the year on Portal 10 at a cost of $1-million.
Preliminary works leading to the start of a bankable feasibility study are under way.
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