Mimosa remains profitable despite falling grades
Platinum Group Metals (PGM) producer, Mimosa Mining Company, says it invested US$40 million into capital projects in the six months to December 31, 2021 aimed at expanding mine life and production capacity.
“Capital expenditure increased 25 percent to US$40 million from US$32 million during the previous quarter as spending on the plant optimisation project accelerated and studies on the North Hill life-of-mine extensions were completed,” the company said.
It noted that the feasibility study was completed and discussions regarding fiscal accommodations were progressing with the Zimbabwean Government.
“The plant optimisation project is aimed at increasing capacity and improving process recoveries, but due to Covid-19-related delays, the project commissioning is scheduled for December 2022,” said Mimosa.
Mimosa has been suffering from ore grade quality loss, with the gramme per tonne constantly falling every half year. The milled per tonne has also been falling from 716 000 tonnes in the six months to December 2020 to 708 000 tonnes in the six months to December 2021.
Despite low tonnage milled, plant head grade has also fallen from 3.61 grammes per tonne to 3.58 grammes per tonne in the 12 months to December 2021.
Plant recoveries have been declining marginally at Mimosa as it closed at 71.83 percent on December 2021 from 75.11 percent in December 2020. The same trend can be said for the miner’s yield per tonne milled which has fallen to 2.57 grammes per tonne from 2.71 grammes per tonne a year earlier.
“Plant instability and poor recoveries due to reagent changes resulted in a 6 percent retracement in 6E concentrate volumes to 124 300 ounces.
“6E sales volumes declined by a more pronounced 28 percent to 116 500 ounces from 161 900 ounces, as volumes in the previous comparable period benefited from the deferred delivery of concentrate inventory accumulated during the IRS force majeure in FY2020,” the company said.
It added that sales in the period were impacted by transport constraints and administrative delays.
During the period under review, cash costs at Mimosa increased by 2 percent to US$107 million from the first half of 2021′ US$106 million with inflationary pressures partially offset by lower transport and selling expenses.
Unit costs per tonne milled rose by three percent to US$76 per tonne from H1 FY2021:
US$74 per tonne, while unit costs per 6E ounce of US$863 were skewed by poor concentrator recoveries and increased by 8 percent.-eBusiness Weekly
