eBusiness Weekly
Business Writer
Zimplats delivered a strong performance during the three months ending March 31, 2020 as tonnes milled increased by 6 percent to 1,7 million tonnes, parent company Implats has said.
6E concentrate production also improved by 6 percent to 150 000 ounces compared to 141 000 ounces in the prior corresponding period.
Matte production and concentrate sales were slightly higher than milled volumes in the period and improved by 6 percent to 152 000 ounces.
For the 9 months ended March 31, 2020, mill throughout of 5,08 million tonnes was 3 percent higher and 6E concentrate production improved by a similar margin to 449 000 ounces from the prior comparable period.
Production in matte, together with concentrates sold, were impacted by the accumulation of in-process inventory due to the furnace rebuild in 1Q 2020 and declined by 3 percent to 419 000 ounces from 433 000 ounces.
Meanwhile, Zimplats’ operations continued relatively uninterrupted during the lockdown period.
The platinum miner was granted permission to continue mining and processing operations during the lockdown period.
Zimplats, however, had to stockpile its mineral output as parent company Impala Platinum Limited where it has an offtake agreement in place declared force majeure following the announcement of the South African national lockdown which became effective on March 26, 2020.
The platinum miner also issued force majeure letters to contractors working on capital projects and other financial institutions “until the end of the current lockdown period or any extension thereof”.
These measures, it said, are meant to “preserve the financial viability of the business”.
Going forward, parent company Implats said although Zimplats has operated successfully to date it remains vulnerable to potential unforeseen interruptions during the remainder of the forecast period.
In terms of the force majeure, the Group said it is working towards its upliftment as a near-term priority.
