Zimplats pockets $13,6m in export incentive
THE country’s largest platinum miner, Zimplats has this year generated $13,6 million in export incentives, reflecting a marginal decrease of 2,9 percent from last year’s figures.
In 2017, the company’s revenues from the export incentive scheme were at $14 million. Zimplats chief executive officer, Mr Alex Mhembere, in a statement accompanying the company’s 2018 integrated annual report said his company has benefited immensely from the facility.
The Reserve Bank of Zimbabwe (RBZ) introduced the export incentive scheme in May 2016 to promote export of goods and services to enhance inflows of foreign currency.
“The group was awarded a 2,5 percent export incentive on export proceeds received in Zimbabwe. As a result, income of $13,6 million (FY2017: $14 million) was recognised in the income statement,” said Mr Mhembere.
During the period under review, revenue for the year increased by 14 percent from $512,5 million in FY2017 to $582,5 million despite the two percent decrease in 4E sales volumes from 555 892 ounces to 542 085 ounces, he said. This was due to the increase in average prices of palladium, nickel, rhodium and copper, which resulted in a 17 percent increase in gross revenue per platinum ounce from $1 868 to $2 184.
Mr Mhembere said cost of sales marginally increased from $367,1 million in FY2017 to $368 million while gross profit margins improved from 28 percent last year to 37 percent this year mainly due to the improvement in average metal prices achieved.
“Operating cash costs per platinum ounce increased by five percent from $1 225 in FY2017 to $1 290 in FY2018 due to a four percent decrease in platinum produced (including metal in concentrate sold), increase in employee benefit expenses and increase in prices of consumables,” he said.
This year the group has spent a total of $135,3 million on capital projects compared to $63,3 million spent in 2017. A total of $131 million was spent on stay in business projects during the year, 121 percent higher than the $59,3 million spent in the prior year.
Bimha Mine, which is undergoing re-development achieved design production capacity in April this year as planned. The commissioning of the north crusher and ore conveyancing system was scheduled for first quarter next year while the commissioning of the south crusher and ore conveyancing system is anticipated in the fourth quarter in 2019.
“A total of US$29,9 million was spent on this project during the year bringing the project expenditure as at June 30, 2018 to $66,2 million against a budget of $101 million.
“A total of $14,4 million was committed as at the end of the year,” said Mr Mhembere. — @okazunga