ZIMBABWE’S biggest platinum miner, Zimplats, has declared US$85 million dividend for the financial year ended June 30, 2021.
During the financial year under review, the group realised revenue amounting to US$1,35 billion compared to US$869 million in 2020 for metal sales to Impala, its parent firm.
Sales to Impala are governed by a contract, which stipulates when payments are to be received and the prices to be effected.
“After the reporting date, the board of directors declared a final dividend of US$85 million (equating to 79 US cents per share) to shareholders on record as at 20 August 2021,” said the company.
Revenue from the sale of white matte and concentrate is recognised when the product has been delivered to Impala where it is subjected to further processing in accordance with contractual terms.
“No element of financing is present due to short-term nature of group contracts and credit terms are consistent with market practice,” it said.
Bank borrowings comprised a loan facility for general business purposes from Standard Bank of South Africa Limited.
The loan, which was guaranteed by Impala Platinum Holdings Limited, is a revolving facility of US$85 million and bore interest at three months LIBOR (London Interbank Offered Rate) plus seven percent per annum.
The first capital repayment installment amounting to US$42,5 million was made during the year ended 30 June 2019 and the balance of US$42,5 million was paid in December 2019.
On ore and concentrates haulage, Zimplats said it has a contract for haulage trucks used for the transportation of ore and concentrates between Ngezi and the Selous Metallurgical Complex.
The contract has a period of five years from November 1, 2017 to October 31, 2022.
“As at 30 June 2021, the present value of the lease liability was US$2,7 million (2020: US$4.3 million) at a discount rate of 9,6 percent,” said the platinum miner.