Zimplats half-year revenue eases to $585mln

Zimplats, which is part of the Implats group, registered a 13% decrease in revenue to $585 million during the half-year ended 31 December 2021 compared to the same period, a year earlier largely due to negative revenue from movements in commodity prices arising on pipeline sales.
It said the gross revenue per platinum, palladium, rhodium, gold, ruthenium and iridium (6E) ounce for the half-year at $1 813 was 19% lower than the $2 241 for the same period the previous year.
This was partly offset by an 8% increase in 6E ounces sold from 301 225 ounces in the prior period to 322 752 ounces because of the sale of matte stockpiled due to an administrative delay in the export of production towards the end of the previous financial year.
The cost of sales at $294.9 million was marginally lower than the same period last year’s $297.4 million.
Consequently, the gross profit margin was 50%, a 6% reduction from 56% achieved in the same period last year.
Zimplats said the half-year results were impacted by net foreign currency exchange losses of $21.8 million arising mainly on Zimbabwean dollar-denominated monetary assets due to the depreciation of the currency.
Cash operating cost per 6E ounce produced at $707 increased by 10% from the US$642 reported in
the same period last year.
“This was driven by inflation-related price increases on some major consumables, increase in labour costs associated with headcount increase and the impact of 5% decrease in tonnes of ore mined on fixed costs,” said Zimplats.
It said 6E mill head grade at 3.42g/t was 2% lower than the same period last year due to the higher contribution of ore from lower-grade mines.
Zimplats’ 6E production decreased by 2% to 283 829 ounces during the half-year ended 31 December 2021 from 288 310 ounces, a year earlier driven by the drop in 6E head grade.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished