Bheki Mpofu
2 November 2009
Johannesburg — ZIMPLATS, a unit of Impala Platinum, reported last week that its production of platinum group of metals for the quarter to September was 51% higher than in the previous quarter, reflecting higher milled tons after the commissioning of its Ngezi concentrator.
The Ngezi concentrator was commissioned in July, and ramped up to full production in September, which resulted in a 61% rise in tons milled on the previous quarter's.
Zimplats said it would complete a preliminary study on the second phase of the Ngezi expansion project by the first quarter of next year. The second phase expansion would consist of a 2- million ton-a-year underground mine, a concentrator module of the same capacity and related infrastructure.
Output for the September quarter reached 74389 oz, compared with 49028 oz in the previous quarter. Revenue was 47% higher than in the previous quarter in line with the increase in sales volume. Despite metal production rising 51% and sales 47%, the quarter' s operating costs rose 12%.
"This is a reflection of both an increased focus on cost management as well as the impact of processing a higher proportion of lower cost underground ore.
"Whilst the continued strengthening of the rand impacted negatively on operating costs this was somewhat abated by the removal of import duties on goods manufactured within the Southern African Development Community region," the company said.
While investor activity and demand from China had boosted platinum group of metals prices in the quarter, the fortunes of the sector remained linked to the struggling car industry.
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