[2008-02-05]  Zimplats revenue up 57pc
ZIMBABWE Platinum Mines has realised US$60,7 million in revenue during the 2007 last quarter ended December 31.

The increase in revenue translates to a 57 percent rise from the previous quarter during which the company’s revenue stood at US$38,57 million.

Zimplats surge in revenue was lifted by increased production during the period under review and continued rally in platinum prices.

Platinum-group metal and gold sales jumped during the quarter to 47 516 ounces from 34 049 ounces a year earlier.

A total of 406 tonnes of nickel was sold during the period, up from 278 tonnes for the last quarter while a total of 276 tonnes of copper were sold during the last three months as opposed to 189 tonnes during the corresponding period. Operating costs were 54 percent higher at US$22,25 million from a year earlier and this was mainly due to higher volume of platinum produced.

"Unit costs for the period were negatively affected by high fuel prices, an exchange rate that did not adequately reflect the prevailing rate of inflation as well as an increase in the electricity tariff," the company said.

Operating profit amounted to US$26,40 million up from US$16,31 million achieved during the previous quarter.

Out of 630 000 tonnes mined, the opencast mine accounted for 363 000 tonnes while underground operations accounted for 267 000 tonnes. Zimplats said both mining and processing operations were satisfactory and generally in line with expectations.

The mining company however expressed concerns over power outages, which had an adverse effect on its operations.

"Since the end of the quarter, operations have been adversely affected by power outages, which resulted from problems within the power supply network in the sub-region.

"Although these problems have been resolved for now, management remains concerned about the ongoing power generation and transmission difficulties and the possible impact on operations," Zimplats said.

Meanwhile the company said its smelter had operated well since the furnace re-line and the processing of stockpiled concentrates was on course to be completed by end of February.

The company however said this was subject to there being no further unscheduled power outages. It also indicated that work on the Ngezi Phase 1 Expansion project remains on schedule despite the very challenging operating environment in Zimbabwe.

Zimplats is owned by Impala Platinum, which has an 86,9 percent stake, Corporate Holdings Limited with a 3,2 percent stake and Mr Adrian Vanderspuy with a 2,6 percent stake.

Source: (C)copyright 2008 The Herald ltd.