By Ziyah News Reporter
The depressed global commodity prices of some major metals which continue to fluctuate on the downside has hit home as the Minerals Marketing Corporation of Zimbabwe (MMCZ) has missed its revenue target for the first half of the year.
The country’s sole minerals marketing agent sold a total 1,9 million metric tonnes (MT), valued at US$1,5 billion in the first half of 2024 – missing first half revenue and volume projections of 2 million MT valued at US$2.030 billion, with declines in global mineral prices leading to a 6% volume miss and a 26% revenue shortfall
MMCZ Acting General Manager Dr. Nomusa Moyo attributed the revenue drop to depressed mineral commodity prices for some of Zimbabwe’s top revenue contributors.
“Lithium was down 72%, nickel 20%, coal 13%, and coke 39%, translating to significant price declines compared to budget forecasts. However, year-over-year price increases were observed for platinum as it firmed 6%, rhodium 6%, copper 16%, fluorite 2% and chrome concentrates 4%, these were not enough to offset the negative impact on overall revenue,” she said.
Despite concerns, minerals in the Platinum Group of Metals (PGMs) still lead in the revenue contribution.
“ The top three contributors in terms of value in the first six months of 2024 were Platinum Groups Metals (PGMs) matte, PGMs concentrate and Zimbabwe’s primary lithium export, spodumene. PGMs matte accounted for 31.8% of the Corporation’s mineral revenue in the first half with 18 844mt of matte valued at US$479 million being sold. A total of 85 407mt of concentrates valued at US$294 million were exported in the period under review.”
Even though there was a revenue target miss in this year’s first half projections, year on year comparison show increase in volume but reduction in total revenue due to the lower prices.
“During the same period last year, the Corporation sold 1,531,149 Mt valued at US$1.689 billion. This points to a 25% year on year increase in sales volumes and an 11 percent slump in value terms,” said Dr. Moyo.