Platinum producer Zimplats Holdings warned on Wednesday (10th December) that its survival is being seriously jeopardised by the current depressed PGM prices.

The firm, which is a subsidiary of Impala Platinum, the world's second-largest producer of the precious metal, explained that it will struggle to meet its operational requirements if prices do not improve.

Furthermore, it revealed that the situation is serious enough to prevent it from being able to fund its Phase 1 expansion project at Ngezi in Zimbabwe due to a lack of cash.

Zimplats' plight comes despite its attempts to cut costs and preserve capital and it is set to post a substantial loss and cash shortfall for the fiscal first-half period to 31st December.

Nevertheless, the company has donated R5 million towards Zimbabwe's warring power-sharing government in order to help the country's fight against a cholera epidemic.

CEO Alex Mhembre explained that it forms part of Zimplats' social responsibility to revive the collapsing healthcare sector and to enable it to retain skilled workers, Zim Daily reports.

According to UN figures, nearly 600 people have died of the illness to date, but it is feared that the real figure is much higher.

Source:

DJ Zimplats Holdings: Survival Under Threat On Price Falls (10/12/08)

http://www.tradingmarkets.com/.site/news/Stock%20News/2077530/

Zimplats donates Z$1 quintillion to the Mugabe regime (11/12/08)

http://www.zimdaily.com/news/zimplats27.6664.html