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Zimplats doubles profit through T-bills rather than platinum sales

Published 26/04/2017, 09:19 pm
© Reuters.  Zimplats doubles profit through T-bills rather than platinum sales
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HARARE, April 26 (Reuters) - Zimbabwe's largest platinum producer Zimplats ZIM.AX reported a surprising profit leap on Wednesday despite declines in sales and revenue, with third-quarter earnings lifted by sales of treasury bills rather than metal.

Zimplats, owned by Impala Platinum IMPJ.J , more than doubled its third-quarter profit to $42 million by selling T-bills it received from the central bank for a longstanding debt.

At the height of an economic meltdown in 2008, the Reserve Bank of Zimbabwe (RBZ) raided the foreign currency accounts of exporters, including mining companies such as Zimplats.

Short of foreign currency, the RBZ last year agreed to repay the mining companies in T-bills, highlighting distortions in the southern African nation's economy, which flatlined last year.

Zimplats received $34 million in treasury bills from the RBZ during the January-March quarter and sold them for a discounted $21 million.

Lower operating costs also helped to boost profit, the company said, while revenue fell by 6 percent to $131 million after sales of platinum group metals declined by 22 percent.

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