Harare — LEADING platinum producer Zimplats recorded a 138 percent increase in profits as revenue surged by 66 percent on the back of higher sales volumes and improved metal prices for the quarter ending December 31 2009.

Profit for the quarter was at US$50 million, up from US$20,7 million previously, while revenue for the current quarter was US$107,4 million, up from US$ 64,6 million during the previous quarter.

A total of 90 081 ounces of 4E was sold during the quarter under review against 71 261 ounces sold last year while nickel and copper sold amounted 794 and 566 tonnes.

Platinum prices during the quarter rose from US$1,237 per ounce to US$1,393 by the end of the quarter.

"There were significant increases in metal prices in the quarter, reflecting moderate levels of economic recovery that have been recorded in most developed economies and renewed appetite for PGM investment products.

"The current metal price levels are considered to be sustainable in the short term," the company said.

Operating costs were up 31 percent on the previous quarter, reflecting, in the main, the higher production base following the commissioning of the Ngezi plant.

Operating costs for the period amounted to $57,4 million, up from US$43,8 million during the previous quarter.

"With a significant portion of input costs incurred in rand, the continued strength of that currency relative to the United States dollar has continued to adversely affect operating costs," the company said.

In terms of mining operations, ore mined increased from 797 000 tonnes to 863 000 tonnes.

Ore milled was up 27 percent on the previous quarter mainly due to the fact that this was the first full quarter of operation for the new Ngezi concentrator, which was commissioned in late July 2009.

Ore milled rose from 869 000 tonnes to 1 100 000 tonnes during the period under review.

"4E recovery at 80,9 percent was marginally above the prior quarter due to a reduction in the amount of oxidised material processed.

"The recovery for the year will, however, be lower than prior years due to running the two concentrators at a lower mass pull in line with smelter capacity," Zimplats said.

Meanwhile, the company reported that the development of the Portal 4 underground mine remains on schedule to reach full production by May 2011.

"Whilst Portal 4 production is ramping up, previously stockpiled ore will be processed through the new concentrator, with sufficient stockpile in place to bridge the shortfall until the mine reaches full production. Evaluation work of the second phase of the expansion programme is proceeding well and will be completed in February 2010, Zimplats said.

Platinum is set underpin economic growth with production expected to rise by 1,2 percent this year.

The mining sector is expected to contribute 40 percent to the country's Gross Domestic Product.