Harare, (New Ziana) –Platinum giant Zimplats recorded a net profit of US$261.8 million for the financial year ended June 30, 2020, an 81 percent increase compared to the same period last year.
The profitability was on the back of an increase in mineral prices, particularly rhodium, palladium, gold and nickel, that saw revenues going up from US$631 million to US$868.9 million.
“The group’s operations were not affected by the Covid-19 pandemic as all the mines and the processing plants continued operating throughout the year with no confirmed cases within the workforce,” the company said.
“Total 6E metal produced for the year (including metal sold as concentrate) increased marginally from 579 591 ounces in 2019 to 580 178 ounces in 2020.”
The miner opted not to declare a dividend for the period to preserve cash and maintain liquidity in light of the economic uncertainties posed by the Covid-19 pandemic.
Last year, Zimplats declared a dividend of US$45 million.
The company managed to reduce workplace injuries to 10 from 14 in the comparable period last year, with 6.8 million tons of ore having been milled, up from 6.5 million the previous year.
“The concentrator plants throughput was better than the previous year due to higher running time and milling rate,” it said.
The firm spent US$104.2 million on capital projects, down from US$115 million in the previous period.
“Development of Mupani Mine, a replacement mine for Rukodzi and Ngwarati mines which deplete in 2022 and 2024 respectively, is progressing well and on schedule,” it said.
“A total of US$32.1 million was spent on this project during the year, taking the overall project cost to US$99.5 million as at 30 June 2020. The mine is scheduled to reach full production of 2.2 metric tonnes per annum in July 2024 at an estimated total project cost of US$264 million.”