Zimplats blows $42m in taxes
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.