Home » Industry » Zimbabwe’s Leading Platinum Miner Sees Drop in Revenue

Zimbabwe’s biggest platinum miner Zimplats recorded a 12% decline in revenue to US$234 million dollars in the six months to December 2014 compared to the same period last year on the back of depressed volumes and metal prices on the international market.

Profit before income tax amounted to 4,7 million dollars, 90% lower than US$45,6 million achieved in the same period last year largely due to lower sales volumes and metal prices, the company said in a financial statement.

Zimbabwe holds the world’s second largest known platinum reserves after South Africa. And Zimplats is a unit of South Africa’s Impala Platinum Group.

Metal prices were on a downward trend during the period under review with average platinum prices dropping by 6% from the same period last year.

Tonnes milled decreased by 17% to 2,48 million tonnes compared to the same period last year owing to ore supply constraints as a result of the closure of Bimha Mine, which collapsed in August last year.

To alleviate the impact of Bimha Mine closure, Zimplats has approved the commencement of contracted open-pit mining to supplement ore supply to the processing operations and first production is expected in the fourth quarter of the year ending June 2015.

It said work on its US$134 million project to refurbish and commission the mothballed Selous base metal refinery was progressing well and on course for completion by June 2016.

– Nampa-Xinhua

Source : The Namibian