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Zimplats' Net Profit Declines Due To Net Foreign Currency Exchange Losses

Zimplats' Net Profit Declines Due To Net Foreign Currency Exchange Losses

Impala Platinum Group company Zimplats’ net profit declined from $250.61-million in the last half of 2020 to $170.68-million in the last half of 2021.

The decline was due to net foreign currency exchange losses of $21.8 million arising mainly on Zimbabwean dollar-denominated monetary assets owing to the depreciation of the Zimbabwean dollar.

Zimplats’ revenue of $585 million was 13% lower year-on-year largely owing to negative revenue from movements in commodity prices.

The cost of sales, at $294.9 million, was marginally lower than the previous year’s $297.4-million.

Consequently, the gross profit margin was 50%, compared with 56% in the prior comparable period.

Zimplats generated net cash inflows from operating activities of $261.3-million.

A dividend of $120 million has been declared for the interim period.

Meanwhile, ore mined decreased to 3.5 million tonnes, mainly as a result of production disruptions at the Mupfuti mine during a changeover of the trackless mining equipment service provider. The changeover has now been completed.

Tonnes milled was unchanged from the prior interim period’s 3.4-million tonnes.

Zimplats’ capital investment programmes:

a). the redevelopment of the Bimha mine was completed within budget at $99.8-million.

b). The upgrade of the Mupani mine is on schedule, with earthworks for the dome and load out station complete.

c). Upgrading of Bimha is progressing well, targeting 3.1 million tonnes yearly in the first quarter of full-year 2024.

d). A feasibility study for the refurbishment of the mothballed base metal refinery at SMC is ongoing, targeting completion by the end of the financial year.

e). A feasibility study for a proposed 185 MW solar project has been completed and an independent power producer’s licence was issued by the regulator.

Zimplats anticipates a sustainably good operating environment and continued enforcement of Covid-19 protocols moving forward. 


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