Zimplats' Quarterly Reports

REPORT FOR THE QUARTER ENDED 31 MARCH 2003

HIGHLIGHTS

• SAG and ball mills relined during quarter and new SAG mill liners performing well.

• Encouraging drill results from Darwendale.

• Positive cash flow of $6.2 million for the quarter.

• Draft agreement prepared for empowerment placement shares.

• Abnormal rainfall and mechanical repairs affect production in March 2003.

Makwiro is 70% owned by Zimplats and 30% by Impala Platinum Holdings Limited.

Ngezi Platinum Mine

Mining volumes for the quarter were adversely affected in March by abnormal rainfall as a consequence of a cyclone.  Mining volumes have subsequently improved and are ahead of budget.

Selous Metallurgical Complex

Milling tonnages during the quarter were constrained by the scheduled relining of the SAG and ball mill which resulted in 12 days milling being lost.  The ounces in matte production was reduced due to major repairs to the furnace matte tap holes.  The furnace has resumed operating at full capacity.

Concentrator

During March the SAG mill and ball mill were completely relined.  The relines were routine, however, the new SAG mill liners are of an improved quality and design.  The new liners have to date performed very well and SAG mill downtime has been significantly reduced.  At the completion of the relining of the mills, instrumentation failure caused damage to the SAG mill bearings, which required them to be replaced.  An overrun on the time taken to complete the reline of the mills and the time lost due to the bearing replacement reduced the milling volumes for March.  January and February milling volumes were satisfactory.

Smelter

Major repairs to the furnace matte tap holes in late March restricted the volume of ounces produced for the quarter.  As a consequence of the repair to the tap holes there was a build up of stocks of concentrate and furnace matte.

Metal Sales

The mill reline and major repairs to the SMC processing facilities during March reduced the metal exports for the quarter.  Metal export volumes have returned to normal levels in April.

The first stoping rooms were successfully completed during the quarter. Hangingwall conditions proved to be competent in these areas with no excess dilution being observed compared to the previously mined development headings. Grade control techniques continued to be refined with visual identification improving to 90% accuracy. The mechanisation of the trial mine will be undertaken in the coming quarter.

 

RESERVES AND RESOURCES

There has been no change to the Ore Reserve and Mineral Resource statement during the quarter.

 

NGEZI EXPANSION

The bankable study for the Phase One expansion has continued on schedule.  There are no significant variations to date compared to the original scoping study.

 

EXPLORATION

 

Step out drilling in the far north of the Zimplats tenements in the Darwendale area, 100km north of Ngezi, as reported last quarter, have produced the following results:

1. All holes were drilled vertically

2. Analysis was undertaken by an independent certified laboratory.

3. A hole location plan is shown below

These results now confirm the previously stated belief that Darwendale, where the orebody outcrops in the north, is a mirror image of Ngezi, at a slightly lower 4E grade.  Dips of less than 12 degrees, maximum depths of 150 metres and an average orebody width of 2.5 metres, makes this area amenable to mechanised room and pillar mining that is currently being successfully undertaken in the Ngezi trial underground mine.

The Makwiro revenue and operating cost for the March quarter, which is 70% attributable to Zimplats, is tabled below:

 

Operating cash flow	March Quarter 2003 US$ 000's	December Quarter 2002 US$ 000's	September Quarter 2002 US$ 000's
Revenue	16,187	17,244	16,900
Operating Cost	9,948	9,021	9,448
Operating Cash Flow	6,239	8,223	7,452

The operating cost for the quarter has increased due to the relining and repairs to the mills, furnace repairs and higher input costs of fuel, explosives and wages.

Increases in the prices of fuel, electricity and wages will impact on operating costs in the fourth quarter, which are anticipated to be offset by increased metal production.

The reduced surplus per ounce is a consequence of higher costs, as explained above, partially offset by higher metal prices.

The average pgm and gold prices for the past 4 quarters are as follows:

Contact – Guernsey

Contact - Australia

Tel: +61 2 9252 7880

Contact – Zimbabwe

Contact – United Kingdom

Mr Roy Pitchford or Mr Greg Sebborn

Fax: +263 4 332 496

Email: info@zimplats.co.zw

Email: ron@mining-investor.com