- Decline attributed to lower yields
- Tonnes milled declined by 7%
- Negotiations to extend Mimosa’s life-of-mine completed
Harare- Mimosa mine’s 6E concentrates production volumes in the half year of 2020 operating period were 9% lower to 120 000 ounces compared to the same period in the prior year.
In a HY 2020 results publication, Impala Platinum (Implats) which holds a 50% stake in Mimosa attributed the decline to the lower yields due to plant outage and subsequent start-up in the period under review.
The mine however recovered from its poor output in Q1 2020 when concentrate volumes were heavily affected by the breakdown of the primary mill.
Tonnes milled in the period declined by 7% to 1.3 million while delivered grade was stable at 3,84g/t.
Mimosa’s gross profit rose to R830 million with contributions to headline earnings of R65 million impacted by intercompany adjustments due to the increase in the unearned profit adjustments on metal in the pipeline.
Negotiations to secure neighbouring ground to extend Mimosa’s life of mine by two years were completed in the period with a royalty payment of US$4.5 million having been agreed on.
In addition, an upfront payment of US$1.5 million will be paid during H2 2020, followed by three US$1.0 million annual instalments.
Steps to derisk the processing plan bottlenecks at Mimosa have been taken by the JV partners through the procurement of additional concentrating equipment sourced from a decommissioned site in South Africa.
This has allowed for the start of a process optimization project, which will be completed over the course of 18 months.
Meanwhile, refined 6E production for the Group consequently declined by 17% to 1,32 million ounces from the prior comparable period, which had benefited from a release of in-process stocks.
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