Zimbabwe Platinum Mines has deferred some of its capital projects valued at close to $60 million due to cash shortages arising from depressed metal prices. In a financial statement for the quarter ended June 30 2016, Zimplats, the country’s largest platinum company said the some of the planned capital projects have been rescheduled.“Some capital projects amounting to $59 million that were planned to be implemented in the year to 30 June 2016 were deferred to future periods due to cash constraints arising from the soft metal prices,” said Zimplats.
Platinum prices have dropped by about 7 percent in the past 12 months since reaching a peak in August 2011.
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, the company said.
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.
It said the redevelopment of Bimha Mine remains on schedule to reach full production in April 2018.
Revenue decreased by 7 percent from the previous quarter owing to the effect of lower sales volumes, which fell by 19 percent to $129 million as stockpiled concentrates (41 757 ounces of 4E) were exported in the earlier period.
Operating costs decreased by 22 percent in comparison to the previous quarter mainly due to the lower sales volumes.
Royalties were 5 percent lower than the previous quarter, which was in line with the decrease in revenue.
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 US$7 million reported in the previous quarter.
Tonnes mined improved by 2 percent from the previous quarter due to an 8 percent increase in tonnage from the Mupfuti Mine as well as sustained operational performances across all the other mines.