JOHANNESBURG (miningweekly.com) – Platinum miner Zimplats this week reported a 41% quarter-on-quarter increase in its revenue for the three months ended December 31, owing to a 70% increase in platinum, palladium, gold and rhodium (4E) metal sales volumes.
This, the company noted, was achieved despite lower metal prices and a 44% quarter-on-quarter increase in operating costs. The company reversed an impairment on long-term receivable of $13-million.
Tonnes mined during the quarter were marginally higher than in the previous quarter owing to sustained good operational performances across all Zimplats’ mines.
Meanwhile, milled ore volumes and 4E metals-in-concentrate produced decreased by 6% and 7% respectively from the previous quarter – driven by the lower concentrator operating time owing to the full reline of the semiautogenous grinding (SAG) mill during the quarter.
Production of 4E metal in converter matte increased by 29% from the previous quarter owing to higher furnace availability. The furnace operating time for the previous quarter was affected by a periodic matte-end wall rebuild shutdown in July 2016.
The effect was a 17% increase in operating time from the previous quarter. Overall metal production (including metals-in-concentrate sold) was, however, 2% lower than the previous quarter.
Concentrates stockpiled during the furnace shutdown were sold during the quarter resulting in a 70% increase in 4E metal sales volumes compared with the previous quarter.
Royalties were 39% higher than the previous quarter, in line with the higher revenue.
Local spend in Zimbabwe, excluding payments to government and related institutions, for the quarter, increased to $61-million, from $27-million in the previous quarter.
Total payments to government in direct and indirect taxes increased from $8-million reported in the previous quarter to $11-million.
Zimplats noted that the redevelopment of its Bimha mine remained on schedule to reach full production in April 2018. A total of $24-million had been spent on the project as at December 31, against an approved total project budget of $92-million.
The bankable feasibility study for its Mupani mine was also approved by the board in November 2016 and development of the new mine started during the period under review.
Mupani mine is now scheduled to reach full production in August 2025 at an estimated total project cost of $264-million.