Harare – Impala Platinum Holdings, the parent of Zimplats has announced a strong set of financial results for the year ended 30 June 2019 headlined by a 36% jump in revenue to R48.6 billion compared to R35.9 million recorded in 2018.
In a statement accompanying the financials, Chief Executive Officer Nico Muller said driving revenue performance was a combination of a 12% or R4.4 billion increase due to higher sales volumes, a 10% or R3.7 billion increase from higher realised dollar metal prices and a 13% or R4.6 billion increase due to a weaker rand.
The period was not all rosy for the Group which faced a challenging operating environment including community disruptions at Marula, the impact of split-reef mining at Two Rivers, intermittent load shedding by Eskom and continued political and economic uncertainty in Zimbabwe.
Gross profit increased five-fold to R6.8 billion and headline earnings of R3.0 which translates to 423 cents per share compared to losses of R1.2 billion or 171 cents per share in the prior year.
“Costs were well controlled with unit costs increasing by 4% on a stock-adjusted basis to R23 942 per platinum ounce,” Muller said.
“Volume gains helped offset persistent inflationary pressures from rising labour and utility costs and the translation impact of a weaker rand on costs from the Zimbabwean subsidiaries.”
Tonnes milled at Zimplats shed off 1% to 6 486kt from 6 570kt tonnes produced in 2018.
“The Zimplats team delivered another year of consistent, efficient and profitable production, as well as industry-leading safety performances,” Muller said.
Platinum production was flat at 270 000 platinum ounces in matte (including concentrates sold), compared to 271 000 ounces in the prior year.
Sales revenues increased by 20% to R9.0 billion compared to R7.5 billion in 2018 while gross profit came in at R2.7 billion, up 42% from R1.9 billion recorded in the prior year.
Meanwhile, Mimosa also delivered a commendable operating performance with tonnes milled stable at 2.81 million tonnes, while the PGE head grade was maintained at 3.83G/t compared to 3.84g/t in 2018.
“Recoveries were negatively impacted by challenges in the milling circuit due to power interruptions, resulting in platinum production in concentrate declining by 2% to 122 000 ounces (FY2018: 125 000 ounces),” Muller said.
Sales volumes improved by 4% to 120 000 ounces compared to 115 000 ounces recorded in full year 2018 due to the impact of the timing of shipments during the previous year.
Capital expenditure increased by 11% to US$49 million, due to deferrals from 2018 and additional spent on vehicles.
Gross profit increased by 21% to R773 million compared to R640 million achieved in 2018.
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Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment. He can be contacted through the following email links, email@example.com and firstname.lastname@example.org.