Home » Industry » Zimplats Record Q1 Earnings Increase

ZIMPLATS, Zimbabwe’s largest platinum producer, reported revenue from its operations increased by 9 percent to $137,8 million in the first quarter of 2014.

Improved metal prices buoyed the positive performance.

In a trade update the company, said between December and March, platinum prices increases by 2 percent, palladium by 3 percent, rhodium 12 percent while goldprices were up 2 percent and nickel prices went up five percent.

The increased revenue, noted Zimplats, saw the company recording an operating profit of $36 million, 76 percent higher than the December quarter.

The company announced that tonnes mined increased by one percent from the previous quarter due to production ramp up at Mupfuti Mine.

However tonnes milled were below the previous quarter due to ore shortages arising from mismatch between mining and milling at a time when business was operating with minimal run of mines stocks.

“Long term stabilization of the areas affected by Mutambara Shear progresses well in the quarter with the full rehabilitation of the areas expected to be completed by the end of the financial year,” stated Zimplats.

Zimplats said total payments to government in direct and indirect taxes decreased by 29 percent to $20 million compared to previous quarter mainly due to the full settlement of prior years, tax liabilities in the previous quarter.

The company said it was engaged in discussions with the Ministry of Youth Development, Indigenisation and Economic Empowerment with regard to the company’s indigenisation implementation plan.

The Zimbabwe Government recently announced it was ready to be flexible on the policy to attract more foreign investments.

Source : CAJ News Agency