Zimplats topline fell 23%
STAFF REPORTER
Zimbabwe’s largest platinum miner Zimplats Holdings Limited reported a 23% decline in revenue to US$962.3m in the 12 months to June 30, 2023 from US$1.2bn reported in 2022, primarily as a result of lower metal prices.
The weaker metal price is owing to lower demand for the end products derived from the minerals as a result of a shaky global economy is what is responsible for the lower
“Revenue decreased by 23% to US$962.3 million as average US$ metal prices softened during the period. Gross revenue per 6E ounce sold (including pipeline debtors revaluation) declined by 20% to US$1 595 .Sales volumes of 6E ounces were 3% lower at 603 000 ounces as the prior period benefitted from the deferred sales of stockpiled volumes due to administrative delays towards the end of FY2021,” Zimplats said.
According to Zimplats, the cost of sales increased by 10% to US$651,9m from US$594,3m in 2022, primarily as a result of an increase in operating costs.
“Operating cash cost per 6E ounce increased by 16% to US$837 per ounce, owing primarily to 11% year-on-year US$ internal inflation. Additionally, costs were affected by an increase in engineering costs, permanent employee headcount as well as selling expenses due to an increase in concentrates sold from the third concentrator plant commissioned in the year,” the miner said.
The company had US$0,32 to every dollar of revenue, down from the US$0,52 recorded in the comparable 2022 period due to the lower revenue and higher cost of sales.
As a result, profit after tax decreased by over $100m during the review period.
“Profit after tax reduced to US$205.5m and net cash generated from operating activities decreased to US$461.9m,” Zimplats said.
Despite the decrease in revenue and profit after tax, Zimplats had US$5,49 to every dollar of debt showing the firm was highly liquid to continue its capital projects.
This position happened despite an uptick in total assets of nearly 2% to US$2.47bn in the 2023 financial year compared to US$2.42bn in the comparative period.
“Mined volumes increased by 7% to 7.6m tonnes, however the mined grade was negatively impacted by the mining mix due to an increase in lower-grade development tonnage and higher volumes of production from the upper ore zone, which has a high dilution factor. FY2023 6E head grade declined by 2% to 3,34g per tonne,” Zimplats said.
