PLATINUM miner Zimplats Holdings Limited has reported a 23% decrease in revenue to US$962,3 million in the year ended June 30, 2023, owing to softer metal prices during the period.
In the comparative 2022 period, Zimplats had revenue of US$1,2 billion.
The weaker metal price is owing to lower demand for the end products derived from the minerals due to an uncertain global economic performance.
In a statement attached to the annual results for the year ended June 30, 2023, Zimplats said it also recorded a 3% reduction in sales volumes for its 6E (platinum, palladium, rhodium, gold, ruthenium and iridium) ounces sold during the period.
“Gross revenue per 6E ounce sold (including pipeline debtors revaluation) declined by 20% to US$1 595,” Zimplats said.
“Sales volumes of 6E ounces were 3% lower at 603 000 ounces as the prior period benefited from the deferred sales of stockpiled volumes due to administrative delays towards the end of FY2021 (financial year 2021).”
Zimplats said the cost of sales increased by 10% to US$651,9 million, from a 2022 comparative of US$594,3 million, primarily due to an increase in operating costs.
“Operating cash cost per 6E ounce increased by 16% to US$837 per ounce, owing primarily to 11% year-on-year US$ internal inflation. Additionally, costs were affected by an increase in engineering costs, permanent employee headcount as well as selling expenses due to an increase in concentrates sold from the third concentrator plant commissioned in the year,” the miner said.
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The lower revenue and higher cost of sales resulted in the firm having only US$0,32 to every dollar of revenue, down from the US$0,52 recorded in the comparative 2022 period.
Resultantly, profit after tax was down by over US$100 million during period under review.
“Profit after tax reduced to US$205,5 million and net cash generated from operating activities decreased to US$461,9 million,” Zimplats said.
Despite the decrease in revenue and profit after tax, Zimplats had US$5,49 to every dollar of debt showing the firm was highly liquid to continue its capital projects.
This position happened despite an uptick in total assets of nearly 2% to US$2,47 billion in the 2023 financial year compared to US$2,42 billion in the comparative period.
“Mined volumes increased by 7% to 7,6 million tonnes, however the mined grade was negatively impacted by the mining mix due to an increase in lower-grade development tonnage and higher volumes of production from the upper ore zone, which has a high dilution factor. FY2023 6E head grade declined by 2% to 3,34g per tonne,” Zimplats said.
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