Zimbabwe Platinum Holdings (Zimplats) on Thursday announced a 10% revenue increase for quarter to December 31, 2018.
The improved financial performance was notwithstanding a 3% decline in milled tonnes during the same period.
Revenue for the quarter rose 10% to $$152 due to an increase in metal prices.
The platinum producer’s profit for the quarter to December 2018 jumped 56% to $63,8 million from $40,7 million achieved in the same quarter in the prior year.
Figures from the platinum group show that profit was also 71% above the previous quarter’s $37 million.
Gross revenue per 4E ounce increased by 19 percent to $1173, which was partly offset by a 7% reduction in volume of 4E metal sold.
Net operating costs decreased by 40% compared to the same quarter in the prior year and 14% from previous quarter mainly due to the decrease in sales volumes and an increase in export incentive.
Royalty and commission expenses increased by 13% from the previous quarter due to the increase in sales revenue (driven mainly by palladium and gold).
During the quarter under review, palladium and platinum were the biggest revenue contributors each accounting for $66 million and $46 million respectively.
Revenue from palladium rose 37% from previous quarter but was 1% below prior year comparable period.
At $9 million, revenue from gold was 16% below same period in 2017 but 10% above the previous quarter.
Income from platinum fell 32% to $46 million compared to comparable prior year period while it was 5% below the previous quarter.
But tonnes milled decreased by 3% from the previous quarter due to a lower milling rate and a decrease in the running time of the mills due to the planned SMC concentrator mill reline shutdown.
Zimplats said 4E metal sales for the quarter amounted to 130 432 ounces, which was 7% lower than the previous quarter, mainly due to the decrease in metal production and some negative adjustments to sales in the pipeline.
The 4E head grade improved to 3,24g/t from 3.23g/t in the previous quarter, reflecting consistent grade control at the mines.
Concentrates smelted decreased by 5% due to a routine seven-day furnace taphole inspection shutdown.