Zimplats has revealed that it enjoyed a 17 per cent quarterly rise in total ore mined during the second quarter of 2009.

The company, which is owned by Impala Platinum - the world's second-largest platinum producer - confirmed that 677,000 tonnes were mined in the three-month period.

However, ore milled fell from 543,000 tonnes to 541,000 tonnes, mainly as a result of electricity reductions and a three-day plant shutdown during power supply upgrades.

Although precious metal sales decreased from 48,567 oz to 48,391 oz, Zimplats announced that operating profits increased from $1.1 million to $5 million.

"Despite a marginal decline in the volume of metals sold, revenue was 25 percent up on the previous quarter due to the steady increase in metal prices during the period," read a statement on its website.

The miner also revealed that it has secured an additional R200 million loan in order to facilitate the commissioning of a new concentrator at its Ngezi phase one expansion.

Zimplats had taken out a R300 million loan for the project but that figure was drawn down and further costs were incurred during a three-month commissioning delay.

Despite these problems, the plans should be completed within budget and the company confirmed that the Portal 4 underground mine will reach full pgm production by May 2011.

Finally, the quarterly financial results also indicated that Zimplats saw the cash cost of production per 4E oz (platinum, palladium, rhodium and gold) increase by 41 per cent.

"Sustainable price recovery remains dependant on a turnaround in the fortunes of the world automotive industry, which at this time is still uncertain," it added.

"Currently, platinum prices are being supported by investor activity and a robust Chinese jewellery market."

Sources:

REPORT FOR THE QUARTER ENDED 30 JUNE 2009 (30/07/09)

Zimplats Q2 revenue up 25 pct, secures loan (04/07/09)

Ÿ Adfero Ltd