…as it declares 79 US cents per share dividend
A total of US$159.1 million on capital projects including stay in business, replacement and expansion projects in the year 30 June 2021, says the country’s largest platinum miner Zimplats.
In FY2020, it stood at US$104.2 million.
The miner is one of the country’s three platinum producers in Zimbabwe, along with Unki and Mimosa Mine. The southern African nation is home to the world’s second biggest known deposits of platinum after South Africa.
On capital projects – the redevelopment of Bimha Mine is largely complete with cumulative spend of US$100.3 million, in line with the estimated project budget of US$101 million.
According to the company, the development of Mupani Mine, the replacement production source for Rukodzi and Ngwarati mines which will deplete in FY2022 and FY2025, respectively, is progressing well and remains on schedule. The project has a design capacity of 2.2Mtpa, which is expected to be achieved in September 2024 at a total estimated cost of US$264 million.
The project to upgrade Mupani and Bimha mines as replacements for Mupfuti Mine, which depletes in FY2027, was approved by the board during FY2021.
“Mupani Mine will be upgraded from the current design capacity of 2.2Mtpa to 3.6Mtpa at a total additional cost of US$122.6 million, thereby increasing the estimated total project cost from US$264 million to US$386 million. US$48.4 million was spent during the year increasing the cumulative total project expenditure to US$146.6 million at year end,” said the company in a statement accompanying the results.
Full production capacity of the upgraded mine is expected to be achieved in August 2028.
“The Bimha Mine upgrade from the current design capacity of 2.0Mtpa to 3.1Mtpa is progressing well and is currently ramping up to achieve full production capacity in FY2023. US$6.9 million was spent during the year from an approved budget of US$81.7 million.”
During the year, the board approved the Phase 3A concentrator expansion, which will increase production capacity by 0.9Mtpa. A third concentrator plant project at Ngezi which commenced in FY2021 will process the additional ore volumes from the early ramp up at Mupani Mine and Bimha mines and is expected to be commissioned in the first quarter of FY2023.
In FY2021, US$14.7 million was spent from the project budget of US$93.8 million. The acquisition of additional trackless mining machinery fleets to supply the expanded third concentrator plant at a total project cost of US$17.6 million. Also, US$9.8 million was spent to support the unconstrained ramp-up production profile.
Volumes of mined and milled ore were sustained at similar levels to the previous year at 7.2 million tonnes and 6.8 million tonnes respectively. 6E production at 579 000 ounces from 580 000 ounces in FY2020 was flat due to a proactive response plan implemented by management in the wake of the Ngwarati Mine high wall collapse and subsequent temporary closure of that mine.
Revenue rose 56% to US$1.4 billion from US$868.9 million in FY2020 largely to the increase in the prevailing average metal prices. Revenue per 6E ounce sold surged to US$2 493 from US$1 566 in FY2020. 6E ounces sold declined by 2% to 543 000 ounces owing to an administrative delay in the export of production towards year end.
The income tax expense increased to US$237.4 million from US$112.4 million on higher profitability. As a result, profit after tax increased to US$563.1 million from US$261.8 million in FY2020.
Net cash generated from operating activities surged to US$453.1 million from US$258.4 million in FY2020.
It declared a final dividend for the year ended 30 June 2021 amounting to US$85 million – Harare