Zimplats Increases 4E Output by 4 Percent

Zimbabwe miner and Impala Platinum (JSE:IMP,OTCMKTS:IMPUY) subsidiary Zimplats (ASX:ZIM) has increased its platinum, palladium, rhodium and gold (4E) production during Q3, the company announced on Wednesday (October 31).

The increase lifted the miner’s 4E production to 1.6-million tonnes for the quarter, while it also managed to post a 6 percent increase in tonnes milled to 1.67-million.

“The mines performed well during the quarter producing 4 percent more than the previous quarter, with all mines operating at design capacity. In the previous quarter, Bimha Mine was still ramping up production,” the company noted in a press release.

“Tonnes milled increased by 6 percent from the previous quarter due to higher running time. Running time for the previous quarter was impacted by planned mill reline shutdowns,” the company added.

These figures are compared to the 1.8-million tonnes of ore mined and the 1.7-million tonnes of ore milled this time last year.

Zimplats noted that the ore was mined at an average head grade of 3.23 grams per tonne 4E, and ore was milled at an 81 percent recovery rate.

“Overall, 4E metal production in final product increased by 7 percent from the previous quarter, in line with the increase in the volume of ore milled,” the company revealed.

Additionally, of the 7 percent increase in 4E production for Q3, platinum constituted 69,825 ounces, while palladium came in at 56,727 ounces, with 7,797 ounces of gold and 6,220 ounces of rhodium being produced.

In terms of sales, the company reported that there were 9 percent higher year-on-year, coming in at 141,005 4E ounces, thanks mostly to an increase in production.

Zimplats reported a profit of US$37.4-million after royalties for the third quarter. These results were compared to a profit of US$37.1-million reported at the end of the second quarter and US$24-million year-on-year.

The company spent US$72-million against a budgeted US$101-million on equipment on the north underground crusher and the ore-conveyancing system at the Bimha mine, which was completed during the quarter.

The miner also noted that development of the Mupani mine, which stands to replace the Ngwarati and Rukodzi mines, is ahead of schedule and ore contact will most likely be made by August 2019 and full production by August 2025.

Zimplats spent US$46-million during the quarter on this project, against an approved total project budget of US$264-million.

As of 3:33 p.m. EST, Zimplats was trading at AU$6.32.

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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.