Zimbabwe: Platinum Sales Rake in $72,8 Million

Zimbabwe: Platinum Sales Rake in $72,8 Million

LEADING platinum producers, the Zimbabwe Platinum Mines (Zimplats) and Mimosa Platinum, grossed US$72,8 million from sales of the “white metal” during the first half of the year.

Both companies registered a combined output of 80 000 ounces.

In its mid-year report, Impala Platinum Holdings (Implats), the majority shareholder in both companies, said production went up 25 percent from 39 000 ounces achieved during the same period last year to 45 000 ounces, earning them US$40,9 million.

Mimosa recorded an increase of 25 percent from 28 000 ounces produced during the comparative period last year to 35 000 ounces, earning US$31,8 million.

The average price of the white metal for the first six-months was pegged at US$911 per ounce, outpacing gold prices which hovered at around US$600 per ounce.

Buoyed by firming platinum international prices, headline profits for Zimplats increased by 42 percent from R54 million to R74 million while Mimosa achieved a R79 million

profit, up 55 percent from the last year’s R51 million.

Global demand for platinum has increased dramatically in recent months owing to rising demand in the automobile sector, manufacturing of computer disks and LCD glass panels in Europe, Japan and China.

Implats — which employees about 31 000 people throughout its operations — said the growth in diesel vehicles in Europe and enforcement of tighter emission standards for light and heavy vehicles contributed to resilience of platinum on the international market.

Demand for jewellery also went up by 30 percent during the period under review.

During the period, total sales for Implats Holdings stood at R7,9 billion, up 28 percent from R6,1 billion during the comparative period.

Profit after tax shed 39 percent from

R3 billion during the first half of 2005 to R2,8 billion.

Implats, which indicated its intentions to invest over R11 billion in expansion projects over the next five years said it would continue with its expansion plans in Zimbabwe.

Zimplats and Mimosa’s expansion programmes, together with the supportive processing capacity, would be one of the fastest and biggest investments globally.

The group’s operations on the Bushveld Complex in South Africa and the Great Dyke in Zimbabwe give it an attributable reserve and resource base of 215 million ounces of platinum.

Platinum is expected to overtake gold in revenue generation in Zimbabwe, thanks to the firming of prices of the white metal on the world market.

Copyright © 2006 The Herald. All rights reserved. Distributed by AllAfrica

Share this post