ZIMBABWE’S largest platinum group of metals (PGMs) producer, Zimplats Holdings Limited, has recorded a 79 percent increase in sales revenue for the half year ended December 31, 2020 after receipting close to US$675 million.
The resources group reported that the jump was largely a result of increases in average metal prices and volumes of metal sold which was US$2 241 compared to US$1 494 per six element (6E) ounce in the same period in 2019.
Volumes were 19 percent higher in the period under review after the group shipped 301 225 ounces compared to 252 748 in the same period in the preceding year.
“Half year revenue increased by 79 percent to US$674,9 million compared to the same period last year, largely driven by increases in average metal prices and volumes of metal sold,” said the mining concern in its Directors’ Report and Condensed Consolidated Interim Financial Statements.
“The gross revenue per 6E ounce for the half year at US$2 241 was 50 percent higher than the US$1 494 for the same period last year. 6E ounces sold increased by 19 percent to 301 225 ounces compared to 252 748 achieved in the same period last year.
“Cost of sales at US$297,4 million was 24 percent higher than the same period last year, mainly due to increase in sales volumes, and the resultant increase in royalty and commission costs,” reported the resources group.
As a result of the changes, share-based payments were higher due to improvement in the Impala Platinum Holdings Limited share price as well as an increase in gross profit margin at 56 percent which signalled a 20 percentage points increase from 36 percent achieved in the previous year.
The concern also noted an accrual from the country’s interbank foreign currency auction system as it saw a huge slash on net foreign currency exchange losses which stood at US$0,1 million compared to US$5, 6 million in the same period in the previous year. The period under review saw the miner making progress on its capital projects which are at various stages of development.
The Bimha Mine redevelopment project is effectively complete on the back of a US$100 million capital injection which is US$1 million less than budget.
Elsewhere, the development of Mupani Mine, which is a replacement for Ngwarati and Rukodzi mines, is ahead of schedule and the project has started receiving fleets from the depleting mines and full production is earmarked for August 2025.
The mining concern reported a bullish outlook despite the threats of the Covid-19 pandemic that has slowed down business globally.
“As we continue to operate during very uncertain times with the Covid-19 pandemic still running rampant across the world, we remain optimistic about the Group’s future” said the resources group.
“The performance in the first half of the year has already demonstrated that we are on the right path, despite the new challenging operating environment. We anticipate favourable metal prices to continue for the remainder of the year.”