• Increase font size
  • Default font size
  • Decrease font size

Tagged with: Zimplats

Oct 2002 - Zimplats

Zimplats / Makwiro Platinum – Profitably Commissioning Ngezi

  • By the end of the June Quarter 2002, following several modifications to the plant (as it had never run as Hartley at full capacity), the concentrator was operating at its 6000tpd design capacity of 2.2mtpa and ZIM was in positive cashflow, its 70% held Makwiro Platinum having produced and sold 18,680oz Pt in the quarter or 38,400oz PGE .
  • Given ZIM’s vast landholding containing delineated ore resources, there are significant upside scenarios for Zimplats and its resulting share price. In our opinion, there are 3 key factors influencing ZIM’s future, namely the success of the underground trial at Ngezi, the decision on a new plant probably in 2003, and the integration of Mwakiro and Impala into a simpler corporate structure.
  • A study appears likely to occur in 2003 to decide on the scope of the first expansion which could involve a doubling of production. The first expansion may be influenced by the progress of the trial underground mine, as to what mix occurs with possibly a new open-cut further north.
  • The underground mining at Ngezi has the advantage of having time on its side to develop a mining method since the open-cut is currently supplying the mill requirement of 2.2mtpa, and it can base its design on the (AQP/IMP) Mimosa mine to the south which has spent 6 years refining its underground mining method.

Read more

Apr 2003 - Zimplats

Zimplats (ZIM) – Turning the Vision into Reality

  • The Hartley complex’s 170moz of platinum resources have been incomprehensible in terms of actually being mined, yet Implats in their February 2003 half-yearly presentation in Johnannesburg stated that Zimplats could increase its current platinum production from 85,000ozpa to 440,000ozpa within 10 years using 100,000ozpa modular units.
  • The transformation of the vision into potential reality has been due to the initial success of the Ngezi open-cut followed by encouraging early development signs from the Ngezi underground. These early indications and signs are probably what is behind the IMP remarks that ZIM is the jewel in IMP’s crown and is of strategic long-term importance to Implats.
  • The initial progress at the Ngezi underground has resulted in Zimplats starting a BFS on the first expansion phase to double production by about 200,000ozpa 4E (platinum, palladium, rhodium and gold) to attain nearly 400,000ozpa 4E by Dec 2005 with about 2mtpa from the Ngezi open-cut and 2mtpa from underground.
  • The platinum price rose by 45% or US$210/oz to peak at US$700/oz in the past year before falling back towards US$600/oz, however demand still appears to be favourable, driven by 3 previously overlooked factors such as Chinese jewellery demand (higher than IMP’s mine production), increasing Chinese autocatalyst demand, and accelerated American development of the fuel cell.

Read more

Sep 2003 - ZIM and AQP

ZIM - Still A Spec Buy, AQP - Bid Coming ?

  • This comment contains 3 sections, namely Impala’s comments, Zimplats and Aquarius. Impala’s comments The Implats press release that accompanied their year end results last Thursday (28 August), had a few pointers as to what may happen in the future to AQP and ZIM, namely :
  • There still could be another bid for ZIM or even one for Aquarius Since, according to the press release (available on IMP’s website) Continued rationalisation of structure Implats has continued to rationalise its corporate structure as the opportunity has arisen. The interests in Mimosa and Zimplats have been consolidated for a full year for the first time. Although currently these contributions are small, as Implats’ interest in Zimplats rises and as expansions at both these operations progress, these are expected to become more significant in the future.
  • In the interests of simplifying operational structures and creating clarity for investors, further changes can be expected in the near and medium term, if an analysis of these opportunities proves to be value-enhancing to shareholders.
  • If you had any doubts about ZIM’s actual worth, you only have to read the first paragraph of this section, namely : (non italics are our inserted comments) Although currently these contributions are small, as Implats’ interest in Zimplats rises and as expansions at both these operations progress (Mimosa and Zimplats), these are expected to become more significant in the future. (note : AQP has the other 50% of Mimosa)

Read more