Zimplats’ half-year revenue scales up 79% on firm metal prices

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  • Increased to US$674.9 million
  • 6E ounces sold increased by 19% to 301 225 ounces
  • Group remains optimistic of future prospects despite COVID-19 drawbacks

HARARE – Zimbabwe’s largest platinum group metals (PGMs) miner, Zimplats Holdings Limited revenue for the half-year ended 31 December 2020 increased by 79% to US$674.9 million compared to US$377.7 million achieved in the same period last year driven by the increase in average metal prices and volumes of metal sold.

The gross revenue per 6E ounce (referring to six elements platinum, palladium, gold, rhodium, ruthenium, and iridium) for the half-year at US$2 241 was 50% higher than the US$1 494 for the same period last year.

6E ounces sold increased by 19% to 301 225 ounces compared to 252 748 achieved in the same period last year. The gross profit margin at 56% increased by 20 percentage points from 36% achieved in the same period last year.

Notwithstanding the impact of COVID-19 upon which the Group recorded seven confirmed cases during the period under review, ore mined increased by 3% to 3.7 million tonnes compared to the same period last year due to improved fleet productivity and additional ore from Mupani Mine, which is under development, while tonnes milled remained unchanged at 3.4 million tonnes.

6E production increased by 8% to 288 310 ounces from 267 366 ounces in the same period last year during which production was adversely affected by the build-up of inventory (first fill) in the furnace on start-up following the furnace rebuild shutdown.

In an update on capital projects, Group Chief Executive Officer, Alexander Mhembere said that the Bimha Mine redevelopment project is essentially complete while the development of Mupani Mine (the replacement for Ngwarati and Rukodzi mines) is ahead of schedule and the project has started receiving fleets from the depleting mines.

“Installation of key infrastructure is on schedule targeting full production in August 2025,” said Mr Mhembere.

On the outlook, he said that the Group remains optimistic about achieving its targets despite the uncertainty emanating from the ongoing COVID-19 pandemic.

“The performance in the first half of the year has already demonstrated that we are on the right path, despite the new challenging operating environment. We anticipate favourable metal prices to continue for the remainder of the year,” he said.

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