Zimplats records improved volumes in final ore

HARARE- PGM’s producer Zimplats which is listed on the Australia Stock Exchange and is majority owned by Amplats, has reported an improved volumes performance for the final quarter of the 2019 financial year.

In the 3 months period to June 2019 (Q4-19), total ore milled in final product went up to 147136 ounces which is 3% ahead of the previous quarter’s outturn and 6% ahead of the same quarter last year.

Zimplats mines 6E minerals which include Platinum, Polladium, Gold, Rhodium, Ruthenium and Iridium and other metals which include Nickel, Silver, Copper and Cobalt. The mine is located on the Hartley Geological Complex on the Zimbabwean Great Dyke south-west of Harare.

Despite the growth in ore milled in final product which is a function of  higher ore grade in concentrate, actual volumes mined and milled came off by 2% each compared to the prior quarter.

 Management attributed the decline to a temporary work stoppage after a fatality was recorded at Mupfuti mine and planned mill reline shutdowns at both concentrates during the quarter under review.

Zimplats operates both an opencast and an underground mine at Ngezi. The Selous Metallurgical Complex (SMC) where the ore is concentrated and smelted is located some 77 km north of the mine.

Established by Delta Gold Limited (Delta) in 1998, the company purchased BHP’s interests in the Hartley Platinum and the Mhondoro Platinum Joint Ventures which included a concentrator and smelter, in May 1999.

In 2001 Implats acquired a 30 percent stake in Zimplats from Delta in a joint venture with ABSA Bank Limited of South Africa (ABSA). Implats held pre–emptive rights over ABSA’s 15% stake as well as a 30% direct stake in the then Makwiro Platinum (Pvt) Limited.

 The remaining 70% was held by Zimplats. In August 2002, the Group acquired a further 21% stake in Zimplats from Aurion Gold and in June 2003 purchased ABSA’s 15% stake. Implats subsequently made an unconditional cash offer to minority shareholders in Zimplats.

For the full year to June ore production at circa 6.6 million metric tonnes is down compared to 6.8 million metric tonnes over the 12 months period to June 2018.

EQUITY AXIS NEWS

 

Respect Gwenzi

Respect is the Lead Analyst and Managing Director at Equity Axis. He has 8 years experience in respective fields of finance and media. Particular areas of expertise include Asset Management, Stockbroking and Financial Media. Respect is on a mission to change the course of Financial Media in Africa through digitalization

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