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Zimplats Holdings Limited, safe and productive working environment

Team Veye | 30 Nov 2020 ASX - ZIM
Zimplats Holdings Limited, safe and productive working environment

Zimplats Holdings Limited (ASX: ZIM)

Report for the Quarter ended 30 September 2020.

Zimplats Holdings Limited (ASX: ZIM) on 30 October 2020 released its Report for the Quarter ended 30 September 2020.

Key Features

  • Three employees tested positive for COVID-19 during the quarter, all of whom have recovered
  • No lost-time injuries recorded during the quarter
  • Attained 2.9 million fatality free shifts during the quarter
  • Tonnes mined increased 2% from the previous quarter, while tonnes milled were maintained
  • Six elements (platinum, palladium, rhodium, ruthenium, iridium and gold) (6E) production decreased 12% from the previous quarter, which benefitted from the treatment of inventory associated with the smelter rebuild
  • Cash costs per 6E ounce produced increased 12% from the previous quarter

(Chart source: TradingView)

Zimplats’ safety performance improved from one lost time injury in the previous quarter to nil in the current quarter

Ore mined increased by 2% from the previous quarter and was 4% higher than in the quarter ended 30 September 2019 because of improved fleet productivity and additional tonnage from Mupani Mine, which is still under development.

While milled volumes, grade and recoveries were stable, 6E metal production in final product decreased by 12% from the previous quarter, during which reported volumes included metal recovered from the treatment of reverts stockpiled during the furnace rebuild. (Data Source – Company Reports)

 

Veye’s Take

Zimplats Holdings’ total operating cash costs increased by 3% from the previous quarter, as a result of higher volumes mined and an increase in minerals marketing commission in line with increased revenue. A total of US$5.6 million was transferred from operating costs to closing stocks during the quarter, compared to US$1.2 million in the previous quarter, due to the increase in run-of mine ore and concentrate stocks. The accumulation of run-of-mine ore stocks will continue in preparation for the commissioning of increased concentrator capacity, which is planned for the second half of FY2022. The stock is trading above 50 and 200 MA on daily and above 50 MA on the monthly t/f. It can have the potential of growing significantly in the near to medium term. Veye recommends a "Hold" on “Zimplats Holdings Limited” at the current price of $11.55

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