Zimplats permanent employees increase 5%

ZIMBABWE’S biggest platinum producer, Zimplats says the number of its permanent workers increased by five percent to 3 198 last year anchored on the resourcing of the Bimha Mine project during the period.

In November last year, the platinum miner announced that it had spent $72 million of the $101 million set aside for the redevelopment of Bimha Mine which collapsed in 2014.

According to the mining giant’s annual report for 2018, the chief executive officer Mr Alex Mhembere said:

“The number of permanent employees increased by five percent from 3 053 to 3 198 as the mining division resourced Bimha Mine which ramped up production to design capacity during the year.”

During the year under review, the number of contractor employees increased by 12 percent from 2 878 to 3 231 due to increased activity at the Mupani Mine project.

“Staff turnover deteriorated from 3,1 percent in 2017 financial year to four percent in 2018 mainly due to an increase in ill-health retirement cases.

“However, the staff turnover was within the limit for the year,” said Mr Mhembere, adding that the group’s industrial relations for the year were stable.

On social investment, the platinum mining firm last year spent $6 million compared to $2,2 million in 2017.

The social development projects undertaken encompassed facilities for sports, education, health, livestock, local enterprise development and income generating projects.

In the year under review, Zimplats’ local procurement percentage decreased from 72 percent in 2017 to 69 percent last year.

Despite the decrease in the local procurement percentage, Mr Mhembere said the group remains committed to contributing towards the resuscitation of the Zimbabwean economy and the development of local enterprises.

In the past, the Government has challenged mining companies to source their supplies from local firms and only consider imports if local suppliers were not able to supply the specified goods or services.

In the year under review, revenue increased by 14 percent from $512,5 million in 2017 to $582,5 million despite the two percent decrease in 4E sales volumes from 555 892 ounces to 542 085oz.

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.

Cost of sales marginally increased from $367,1 million in 2017 to $368 million.

Gross profit margins for the period improved from 28 percent in 2017 to 37 percent last 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 2017 to $1 290 in last year due to a 4 percent decrease in platinum produced (including metal in concentrate sold), increase in employee benefit expenses and increase in prices of consumables. — @okazunga