Zimbabwe Platinum Mines Limited (Zimplats) has published its half yearly results for the six months up to the end of December last year.

The firm posted consolidated profits of US$4.35 million after producing 85,038 troy ounces of platinum, palladium, gold and rhodium.

Total revenues of US$38,092,000 and operating costs of US$28,786,000 resulted in an operating profit of US$9,306,000 for the firm.

Platinum is becoming increasingly important to Zimbabwe's economy as gold production declines and the price of platinum continues to increase.

Zimplats has also benefited from a rise in the price of palladium, which increased from US$172 per ounce in June 2003 to US$201 at the end of last year.

Chief executive, Roy Pitchford, commented on the results: 'Significant progress has been made on the trial underground mine, confirming mining methods, stability of ground conditions, grade control procedures and operating costs.

'The bankable feasibility study for a new underground mine at Ngezi is therefore well advanced.'

The mining giant also explained it had managed to repay US$8.6 million in debts.

Zimplats holds around 165 million ounces of platinum resources in the Great Dyke of Zimbabwe, which comprises the majority of the Hartley Geological Complex - the largest known near-surface undeveloped platinum and palladium resource in the world.