By Nelson Banya
HARARE Aug 1 (Reuters) – Impala Platinum’s
Zimbabwe unit Zimplats posted a 52 percent drop in
operating profit in the fourth quarter to June, mainly due to
weaker platinum group metal prices.
In a statement released on Wednesday, Zimplats said
operating profit was $25 million, down from $52 million in the
previous quarter as metal prices were depressed during the
period while operating costs rose 17 percent in line with higher
sales volumes.
Revenue for the quarter was $114 million, 11 percent lower
than previously, despite a 13 percent jump in volume of metals
sold, Zimplats said.
The miner said it had secured uninterrupted electricity
supplies after giving state power utility ZESA a $25 million
loan to reduce its debt with Mozambique’s Hidroelectrica de
Cahora Bassa. In return, Zimplats will be awarded power units
and will not suffer power cuts for five years.
Zimplats, which is 87 percent controlled by South Africa’s
Implats, said in March it had agreed to a deal that would see it
comply with Zimbabwe’s requirement that 51 percent of shares in
Zimplats be held by locals.
The firm said it was in ongoing discussions with the
government over the implementation of the ownership agreement.
Zimplats said it was on course to commission its
concentrator plant under a $460 million expansion project in
April 2013.
(Reporting by Nelson Banya; Editing by Mark Potter)
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