Oliver Kazunga, Senior Business Reporter
ZIMBABWE’S largest platinum producer, Zimplats, has realised $6,6 million in export incentives, boosting the miner’s profit after tax to $16,2 million in the half year ended December 31, 2016.
The Reserve Bank of Zimbabwe introduced a 2,5 percent bond notes export incentive scheme for large mining exporters in May last year to address the challenges of low productivity and promote export receipts.
“The half year ended December 31, 2016 benefited from export incentive of $6,6 million and a reversal of impairment of $13 million on the previously written off Reserve Bank of Zimbabwe (RBZ) debt,” it said in a statement accompanying its financial results for the half year.
Zimplats’ revenue during the period under review rose 16 percent to $237,7 million from $204,3 million realised in the same period prior year on the back of relative increase in metal prices and higher sales volumes.
“Cash operating cost per platinum ounce produced decreased by four percent to $1 185 compared to the same period last year due to higher production volumes and benefit of the sustained cost management measures adopted starting from the second quarter of the financial year ended June 30, 2016 in response to the collapse in metal prices,” said the platinum miner.
It said as a result of the above factors, profit before income tax for the period at $37,2 million was significantly higher than the $0,6 million loss recorded in the same period last year.Income tax for the half year at $21 million (2015: $1,2 million) resulted in a profit after tax for the period of $16,2 million compared to a loss of $0,6 million incurred in the same period last year.
Net cash inflows from operating activities increased from $6,5 million recorded during the same period last year to $46,1 million mainly due to higher sales proceeds ($217,5 million compared to US$174,3 million received in the same period last year).
The sales receipts for the prior year were affected by the 15 days furnace shutdown resulting from the furnace shell breakout incident which happened on May 18, 2015.