Zim­plats blows $42m in taxes

Chronicle (Zimbabwe) - - Business - Bianca Mlilo Busi­ness Re­porter

PLAT­INUM miner Zim­plats has spent $42 mil­lion pay­ing taxes to the Gov­ern­ment in the last quar­ter to June 2016.

The com­pany mines plat­inum group met­als, which are a fam­ily of six met­als: plat­inum, pal­la­dium, rhodium, irid­ium, ruthe­nium, and os­mium, all of which have sim­i­lar chem­i­cal and phys­i­cal prop­er­ties.

In its quar­terly re­port for the pe­riod ended June 30, 2016, Zim­plats also in­di­cated that its rev­enue had de­creased by seven per­cent from the pre­vi­ous quar­ter due to lower sales vol­umes.

“Lo­cal spend in Zim­babwe (ex­clud­ing pay­ments to Gov­ern­ment and re­lated in­sti­tu­tions) for the quar­ter in­creased by a sig­nif­i­cant 79 per­cent to $92 mil­lion, while to­tal pay­ments to Gov­ern­ment in di­rect and in­di­rect taxes in­creased to $42 mil­lion from $7 mil­lion re­ported in the pre­vi­ous quar­ter,” Zim­plats said.

“Profit from oper­a­tions after roy­al­ties of $25,6 mil­lion was re­alised dur­ing the quar­ter com­pared to $6,7 mil­lion recorded in the pre­vi­ous quar­ter.

“Rev­enue de­creased by seven per­cent from the pre­vi­ous quar­ter ow­ing to the ef­fect of lower 4E sales vol­umes, which de­creased by 19 per­cent as stock­piled con­cen­trates were ex­ported in the ear­lier pe­riod, par­tially off­set by higher metal prices.”

Zim­plats said dis­cus­sions with the rel­e­vant au­thor­i­ties in Zim­babwe on the $34 mil­lion debt owed by the Re­serve Bank of Zim­babwe to the op­er­at­ing sub­sidiary were con­tin­u­ing.

The min­ing en­tity also said it was still in dis­cus­sion with the gov­ern­ment of Zim­babwe re­gard­ing its in­di­geni­sa­tion im­ple­men­ta­tion plan.

“The im­ple­men­ta­tion of the Ngezi Phase 2 ex­pan­sion project is pro­gress­ing well and a to­tal of $453 mil­lion of the project bud­get had been spent as at 30 June 2016,” said Zim­plats.

“A to­tal of $22,1 mil­lion was spent on the re­fur­bish­ment of the Selous Me­tal­lur­gi­cal Com­plex base metal re­fin­ery and $1 mil­lion was com­mit­ted as at 30 June 2016.

“The rede­vel­op­ment of Bimha Mine re­mains on sched­ule to reach full pro­duc­tion in April 2018.”

The com­pany also re­ported some cap­i­tal projects amount­ing to $59 mil­lion that were planned to be im­ple­mented in the year to June 30 2016 were de­ferred to fu­ture pe­ri­ods due to cash con­straints aris­ing from the soft metal prices.

@Bian­caMlilo

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