· Mined tonnage decreased by 4% from the prior quarter, from 1.9 million tonnes to 1.8 million
· ore milled decreased by 3% from 1.9 million tonnes in the prior quarter to 1.8 million tonnes
· total operating costs increased by 16%
The graph below shows key highlights
Harare- Leading Platinum Group Metals (PGMs) producer, Zimbabwe Platinum Mines Limited (Zimplats), a member of the Amplats Group shared impoverished both production and financial performance for the first quarter ended 31 March 2023 compared to the previous quarter ended 31 December 2022. On year-on-year basis, compared with the first quarter of 2022, production performance was mixed, but however, dominated by reds. The Group attributed the production downturn to erratic power supplies and 2 days lost in production.
Power outages have been a detrimental effect on the Group’s prowess. As rolling power cuts in Zimbabwe failed to find a breather with electricity tariffs soaring over 40% in United States dollars, the Group’s power tariff bill soared by 42% during the quarter ended December 2022 resulting in total operating cash costs increasing by 13%.
Since post COVID-19 pandemic period in Zimbabwe, power utility, Zimbabwe Electricity Supply Authority (ZESA) introduced load-shedding which lasted up to 18 hours per day, one of the worst power cuts in Zimbabwean history. Zimbabwe’s targeted electricity self-sufficiency scheduled for 2023 flopped while the addition of units 7 and 8 to the national grid missed the initial target.
The Group itself is executing a 35MW solar plant project which is Phase 1 of its 185 MW solar project. According to the Q4 results released earlier this month, the 35 MW project is progressing well with a total of US$0.8 million spent and US$ 0.4 million committed against a budget of US$37 million.
Zimplats operates five underground mines, which supply ore to three concentrator modules two at Ngezi and the third one at Selous. Production from the mining operations is processed by the three concentrators and further refined at Selous Metallurgical Complex where the smelter is located. After investing in Mupani Mine in 2022, the Group is targeting further investments in Ngwarati Mine by 2025.
Meanwhile, ore mined, ore milled, and 6e total (platinum, palladium, gold, ruthenium, iridium and rhodium) decreased compared to the previous quarter ended 31 December 202nickel, copper and cobalt also recorded dampened performance. Marginal growth not consistent though, was recorded on year-on-year performance.
Mined tonnage decreased by 4% from the prior quarter, from 1.9 million tonnes to 1.8 million tonnes during the period under review. The Group attributed the decline mainly to power outages and dampened operating days, from 92 in the previous quarter to 90 in the period under review. The Group further said the performance was impacted by the lower availability of trackless mining equipment at Mupfuti Mine, which, however, was addressed.
“The decline in mined tonnage was mainly due to a decrease in the number of operating days, from 92 in the prior quarter to 90,” said the Group.
Due to a deprive in ore mined, ore milled decreased by 3% from 1.9 million tonnes in the prior quarter to 1.8 million tonnes during the reviewed period, again attributed to a decrease in the number of operating days in the period as well as the power outages encountered in the final month of the quarter. However, year-on-year milled volumes increased by 10%.
A 10% year-on-year increase was necessitated due to the inclusion of tonnes milled at Ngezi’s third concentrator plant, which was commissioned in September 2022. The concentrator plant was commissioned on a budget of US$104 million with a nameplate capacity of 0.9 metric tonnes per annum.
6E head grade decreased by 3% from the prior quarter and was 4% lower year-on-year, largely due to an increase in tonnes milled from lower-grade stockpiles, dilution from mining across geological structures, and mining larger construction excavations.
6E metal in final product decreased by 8% from the prior quarter, largely because of lower 6E head grade, 6E concentrator recoveries and milled volumes, each of which declined by 3%. Year-on-year 6E metal in the final product remained at similar levels as the 10% increase in tonnes milled was offset by lower head grades and recoveries, and the prior quarter benefitted from a larger release of concentrate inventory.
On the financial front, against depressed production volumes, total operating cash costs decreased by 5% from the prior quarter. This was necessitated by lower production output. A total of US$4.6 million was transferred from operating costs — 2.5% of tonnes milled was taken from the stockpile and some concentrate inventory accumulated during the prior quarter was smelted in the period.
Equity Axis News
