Zimplats spends $66.9m on mine development

Harare - Zimplats says redevelopment of its Bimha mine remains on schedule to reach full production by April 2018. 

In a statement accompanying the miner’s results for the half year to December 31 2017, chief executive officer Alex Mhembere said a total of $46.8m had been spent on the project as at December 31 2017 against an approved total project budget of $101m.  

Mhembere said the development of Mupani mine remains on schedule, targeting ore contact by May 2020 and full production by August 2025.

The miner has spent a total of $20.1m on the project against an estimated total project cost of $264m. 

In the financial results for the period, Zimplats said its revenue for the half year to December grew by 20% to $286.4m on the back of firm metal prices.

Mhembere said gross revenue per platinum ounce for the half year was 21% higher at $2 154, up from $1 775 in the prior year comparative.

As a result, the gross profit margin improved to 36%, up from to 25% in the prior year comparative.

Profit before income tax for the period at $61.4m was significantly higher than the $37.2m recorded in 2016. 

Profit after tax for the period amounted to $21m compared to $16.2m attained in 2016. 

Profitability was also boosted by the $5.6m the miner received from the Reserve Bank of Zimbabwe’s export incentive scheme.

Platinum production for the half year was slightly higher at 136 152 ounces from 135 824 ounces in the comparative period.

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