Oliver Kazunga, Senior Business Reporter
MULTINATIONAL mining group, Impala Platinum, says it will continue to maintain constructive engagement with the Government on how to tackle the prevailing economic challenges.
In a statement, the mining group, which operates Zimbabwe’s largest platinum producer, Zimplats and Mimosa Mining Company, said efforts to engage Government on the economic front were underway.
“In Zimbabwe, efforts to maintain open and constructive engagement with the Government will continue amid a challenging economic and political environment,” it said.
During the financial year ended June 30, 2019, the group posted a strong operational performance in key indicators.
“A strong operational performance in key areas allowed the group to harness the benefit of improving market conditions and rising rand Platinum Group Metals (PGM) pricing during the year and deliver a substantially improved financial result with healthy free cashflow generation and a return to a closing net cash position at year-end,” it said.
The group said the Zimplats team delivered another year of consistent, efficient and profitable production, as well as industry leading safety performances.
“This operation has operated for several years without a fatal incident. An unfortunate fatal injury during the final quarter of the financial year has only renewed management’s resolve to regain its delivery of the group’s zero harm objectives.
“Zimplats operated for its first year under the conditions of new converted mining rights, which came into effect on 31 May 2018, yielding free cash benefits from reduced average taxation, despite higher royalty rates,” said Implats.
The mining group said its subsidiary firm during the period under review recorded increased revenue by eight percent to US$631 million from US$582,5 million in the 2018 financial year.
This was despite the marginal increase in four elements (platinum, palladium, rhodium and gold) (4E) sales volumes to 542 500 ounces from 542 085oz.
The revenue increase is attributable mainly to the prices of palladium, rhodium, ruthenium and iridium.
“Mimosa delivered another stable operating performance, a commendable achievement given its maturity, its limited scope for volume and efficiency gains and the challenges presented by the Zimbabwean operating environment.”
The group’s strategic imperative to re-position the business as a high-value, profitable and competitive PGM producer was meaningfully advanced through an operational and financial turnaround at Impala Rustenburg. — @okazunga