Zimbabwe’s largest platinum miner, Zimplats has recorded impressive strides on its productive capacity at a record 6.4 million tonnes per annum as the firm focuses on volumes to hedge against subdued international metal prices.
The platinum mining giant is now back on track after production was greatly affected following the collapse of its largest underground mines at Bimha in 2014.
Throughput at the firm is now sitting at a record 6.4 million tonnes per annum from the 6.2 million tonnes across its four elements mainly platinum, palladium, rhodium and gold.
The miner is now focusing on enhancing volumes to hedge against the volatile prices of metals on the international market to offset the impending effects on its revenue.
Figures from the group’s financial report for the quarter ending June 30, 2017 highlights net operating costs increased by 28 percent in comparison to the previous quarter largely due to the 16 percent increase in sales volumes in platinum, palladium, rhodium and gold.
Despite recording a jump in revenue for the period under review, the firm remains cautious of the subdued prices of platinum on the international market which commodity experts predict will hit US$950 per ounce by the end of this year and US$975 in 2018.
The price of the commodity is further projected to reach US$1 150 by 2019 on the back of increased use in industrial applications and constrained supply.
In early trade this Monday (today), the commodity was bid at US$979 per ounce with the asking price pegged of US$984.