The operation delivered an exceptional performance, which marked the first year of full production following the commissioning of the Phase 1 expansion in FY2010.
Tonnes milled increased by 3% to 4.22 million with both the Ngwarati and Rukodzi Mines (Portals 1 and 2) operating at full production at 1.26 and 1.34 million tonnes respectively. Bimha Mine (Portal 4) continued its ramp up with tonnes milled increasing by 75% to 1.62 million. Full throughput at Bimha Mine of 164 000 tonnes per month was achieved in May 2011. Good grade control was maintained across the three mines with mill grade unchanged at 3.56g/t 6E. Concentrator recoveries rose by 1% to 82.4% due to an improved performance at the Ngezi unit. The combined effect was a 5% increase in platinum production in matte to 182 100 ounces.
Unit costs rose by 16% to US$1 171 per platinum ounce in matte due to a combination of internal inflation, the strong Rand and higher maintenance costs at the Ngezi concentrator. Internal inflation at 7% was driven by significant increases in labour, consumables, explosives, fuel and underground support costs. The strength of the Rand continues to have an adverse effect on South African sourced inputs. Maintenance costs at the Ngezi concentrator rose mainly as a result of the concentrator operating for a significant part of FY2010 on commissioning spares and consumables lowering expenditure during that period. Capital expenditure increased by 29% to $119 million as a result of the commencement of the Phase 2 expansion.
The Phase 2 expansion commenced in August last year, and the project, which will be funded from internal cash flows and bank loans, is estimated to cost in the region of US$460 million. It entails the development of a new two million tonne underground portal, Mupfuti Mine (Portal 3), an additionally sized concentrator module and associated infrastructure. Mupfuti Mine is scheduled to commence production in FY2013. The new concentrator unit is expected to be commissioned in April 2013 and reach full nameplate capacity in FY2014. A run-of-mine ore stockpile is currently being built to ensure steady-state capacity at the concentrator as Mupfuti Mine ramps up to full production.
Both headgrade and overall metallurgical recoveries are expected to remain around the current levels of 3.56g/t 6E and 80%, respectively. Based on the Phase 2 expansion refined platinum production will increase by 90 000 ounces to 270 000 ounces per annum. Capital expenditure is estimated at approximately US$770 million over the next five years. US$400 million of the total capital budget will be expended on the Phase 2 expansion, the majority of which will be incurred over the next two years.
The next step in our growth plans is the Phase 3 expansion which is currently the focus of a feasibility study.
Zimplats – key statistics
|REVENUE||(Rm)||3 709||3 052|
|Platinum||2 004||1 767|
|COST OF SALES||(1 576)||(1 481)|
|Change in inventory||(21)||(118)|
|GROSS PROFIT||2 133||1 571|
|Adjusted gross profit||2 052||1 159|
|Other operating expenses||(203)||(145)|
|PROFIT FROM OPERATIONS IN IMPLATS GROUP||1 736||945|
|SALES VOLUMES IN MATTE|
|Nickel||(t)||3 481||3 131|
|PRICES ACHIEVED IN MATTE|
|Platinum||($/oz)||1 564||1 364|
|Rhodium||1 841||2 204|
|Nickel||($/t)||18 997||15 466|
|EXCHANGE RATE ACHIEVED||(R/$)||7.03||7.56|
|Tonnes milled ex-mine||(000t)||4 223||4 095|
|Platinum in matte||(000oz)||182.1||173.9|
|Palladium in matte||148.1||140.2|
|Rhodium in matte||16.8||15.5|
|Nickel in matte||(t)||3 519||3 103|
|PGM in matte||(000oz)||388.8||368.9|
|TOTAL COST||(Rm)||1 519||1 324|
|– per tonne milled**||(R/t)||355||323|
|– per PGM ounce in matte**||(R/oz)||3 855||3 589|
|– per platinum ounce in matte**||(R/oz)||8 232||7 614|
|($/oz)||1 171||1 007|
|– net of revenue received for other metals**||(R/oz)||(1 131)||224|
|– per platinum ounce in matte||(R/oz)||8 342||7 614|
|($/oz)||1 186||1 007|
|LABOUR INCLUDING CAPITAL AS AT 30 JUNE||(number)||5 367||3 680|
|Own employees||2 757||2 418|
|Contractors||2 610||1 262|
|Centares per panel man per month||(m2/man)||42.0||43.0|
|*||Adjustment note: The adjustment relates to sales from Zimplats to the Implats Group which at year-end were still in the pipeline.|
|**||Excluding share-based compensation.|