Zimplats has recorded annual pgm production of 176,000 ounces, although the unchanged output has been offset by rising pgm prices.

Describing the mining and processing results as "satisfactory", Zimplats said the production of platinum, palladium, ruthenium and gold had stabilised at its current level, moving little in relation to last year.

However, rising precious metal prices helped push turnover up by two per cent to $112.48 million for the year and revenues rose by 12 per cent.

Operating costs soared – by 41 per cent – but Zimplats said this was due to a "significant increase" in the open-cast mining contract rates at its Ngezi mine, as well as the controlled exchange rate amid what it termed a "high inflation environment".

Zimbabwe has seen inflation spiral out of control in recent years, hitting a high of a staggering 600 per cent.

With these costs impacting on operations, Zimplats says it has decided to phase out the open-cast operation, adding that it is now set to ramp up annual production at its number two portal underground mine to one million tonnes to compensate.


Ÿ Adfero Ltd