HARARE, (The Source) – Zimplats reported a 27 percent increase in after-tax profit to $20.6 million for the three months to December 2016 driven by a 41 percent increase in revenue.
Revenue rose to $139 million from $98.5 million in the previous quarter on the back of increased 4E metal sales volumes.
“Concentrates stockpiled during the furnace shutdown were sold during the quarter resulting in a 70 percent increase in 4E metal sales volumes compared to the previous quarter,” the company said.
Operating costs increased by 44 percent from $79.8 million because of the higher sales volumes. Cash costs per 4E ounce at $600 were 2 percent higher than the previous quarter largely due to the lower 4E production.
Production during the quarter declined to 135,236 ounces from 138,670 ounces although 4E head grade was maintained at 3.24g/t.
Lower metal prices during quarter however resulted in a 17 percent decline in revenue per 4E ounce to $817 from $981. The price of platinum went down 13 percent to $945, while that of gold also declined 9 percent to $1,219/oz.
Palladium price was up marginally from $975 to $985 per ounce and that of nickel increased by 5 percent to $10,804 per tonne.
Local spend in Zimbabwe (excluding payments to government and related institutions) for the quarter increased from $27 million recorded in the previous quarter to $61 million. Total payments to government in direct and indirect taxes increased from $8 million reported in the previous quarter to $11 million.
Royalties were 39 percent higher than the previous quarter, in line with the increase in revenue. This was partly offset by the reversal of impairment on a long term receivable of $13 million.
Profit from operations after royalties of $20.6 million was realised during the quarter compared to $16.2 million recorded in the previous quarter.