Home » General » ZIMBABWE’S BIGGEST PLATINUM PRODUCER REPORTS 17 PCT DROP IN OUTPUT FOR QUARTER ENDED DEC 31

HARARE, Feb 3 — Zimplats, Zimbabwe’s biggest platinum producing company, has recorded a 17 per cent dip in ore production to 1,152,000 tons for the quarter ended December 2014 as the closure of its Bimha Mine which collapsed in August took its toll on the company, its latest results show.

The decline in ore production impacted on the company’s financial performance as it posted a 20.5 million US dollars loss for the quarter, compared with a profit of 11.2 million USD during the comparable period in 2013.

“Financial performance was negatively impacted by lower production volumes, softer metal prices due to the closure of Bimha Mine,” the company reported here Monday.

The Bimha Mine, which collapsed following ground movements, has since been rehabilitated with production resuming in December last year. Zimplats said further studies had revealed that there had not been major ground movements observed in the past few months.

On the other hand, a 12 per cent decline in global platinum prices and six per cent drop in gold prices also hit the miner’s earnings during the period. Group revenue fell 17 per cent to 100.6 million USD from 121.1 million USD during the comparable period of 2013.

The collapse of Bimha Mine pushed up the miner’s operating costs by 21 per cent compared with the previous quarter.

Zimplats said it was engaging outside contractors to boost production in the meantime. “Contractor mobilisation is currently in progress and first production is expected in the fourth quarter,” it said.

Zimplats also reported a 14 per cent drop in copper production to 696 tonnes while nickel output also went down 12 per cent to 968 tons.

SOURCE: NEW ZIANA

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