By Business Reporter – Monday 3 February 2020
HARARE (Mining Index) – 6E METAL production in final product slumped 23 percent from the previous quarter due to an increase in concentrate stocks and the build-up of inventory in the furnace on start-up following a 122-day major rebuild shutdown, said Zimplats in its report for the quarter ended 31 December 2019.
The group said furnace inventory build-up is expected to reverse during the financial year and anticipates all concentrates stockpiled to be smelted before end of 2020.
Total operating cash cost increased by five percent from the previous quarter. Costs for the previous quarter were low as the furnace was down on its major rebuild.
Costs transferred to closing stocks increased from the previous quarter due to a rise in ore and concentrate stocks. Operating cash costs per 6E ounce grew by 30 percent from the previous quarter due to the 23 percent decrease in 6E ounces produced.
Tonnes milled decreased by two percent from the previous quarter due to lower running time. Running time for the quarter was constrained due to the planned mill reline shutdown at the Selous Metallurgical Complex concentrator.
Ore mined increased marginally from the previous quarter. Tonnes mined for the quarter was eight percent higher than the quarter ended 31 December 2018, mainly due to improved fleet productivity and additional tonnage from Mupani Mine, which is still under development.
A total of US$1.3 million was committed on exploration drilling projects conducted during the quarter on existing mines.
Commenting on the groups’ safety, Zimplats said;
“Zimplats’ safety performance deteriorated from one lost-time injury in the previous quarter to five in the current quarter. All accidents were investigated, and management is confident that after fully implementing the recommendations from the investigations, our safety record will turn around. The Group remains committed to its ultimate objective of “Zero Harm.”
The group however achieved one and half million fatality free shifts during the quarter. ENDS// www.miningindex.co.zw
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