Lower prices contribute to 56% fall in Zimplats’ FY profit
JOHANNESBURG (miningweekly.com) – Declining platinum prices pushed ASX-listed Zimplats’ after-tax profit down 56% year-on-year to $56 138 for the year ended June 30.
Revenue for the financial year decreased by 29%, from $576-million in the previous year to $408-million, mainly owing to a 20% reduction in platinum, palladium, rhodium and gold sales volumes, from 477 905 oz to 381 849 oz and a 12% fall in gross revenue per platinum ounce from $2 457/oz to $2 167/oz arising from declining metal prices.
The company’s cost of sales of $316-million was also 5% lower than the previous year, owing to the decrease in sales volumes, which was partly offset by higher costs associated with underground roof support in bad ground areas.
Further, Zimplats reported that its operating cash cost per platinum ounce for the year increased by 18% from $1 319/oz in the prior year to $1 551/oz.
The company incurred a $22.9-million impairment, owing to the collapse of a section of the underground working area of its Bimha mine and the precautionary closure of the mine in August 2014.
This impairment was written-off during the year.
In addition, $15.6-million in costs incurred on the greenfield Phase 3A Base Metal Refinery (BMR) feasibility studies were written off in the year under review, after the group made a decision to refurbish the existing BMR at the Selous Metallurgical Complex.
Taxation for the year, at $130.5-million, was 314% higher than the previous year, mainly owing to the impact of two court judgments. This resulted in an after-tax loss of $74.3-million for the year under review, compared with the $97.1-million profit recorded in 2014.
Post year-end, the board declared a final dividend of $13-million for the financial year.
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