IMPLATS: 5,319 +34 (+0.64%)
Zimplats FY profit tumbles after higher deferred tax charge
HARARE, Aug 31 (Reuters) - Zimbabwe's largest platinum miner
Zimplats on Friday reported a 94 percent drop in
after-tax profit to $2.6 million after incurring a higher
deferred tax charge.
Zimplats, majority owned by Impala Platinum, said
revenue rose to $583 million from $513 million in the year to
June. Cash from operations was up nearly four-fold at $195
But the company had to pay $98 million in deferred tax,
negatively impacting its profitability.
"The deferred tax charge for the current year was
significantly higher than the prior year because of the change
of the operating subsidiary's status from being a special mining
lease holder to a mining lease holder," Zimplats said.
The tax rate increased to 25.75 percent from 15.45 percent
in the past.
Zimplats said in June it had been issued two separate mining
leases to replace a special mining lease it was granted earlier
and which was due for renewal in August 2019.
Platinum production declined to 266,720 ounces from 281,069
ounces due to a 45-day smelter shutdown for planned maintenance.
(Reporting by MacDonald Dzirutwe)
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.