- Smelter repairs trigger 24% QoQ plunge in 6E output to 142,535oz, trapping ~12,600oz in inventory
- Cash cost per 6E ounce surges 30% QoQ amid rising opex and absent solar credits
- Mupani Mine 91% complete, on track for 3.6Mtpa by FY2029 despite near-term grade dilution
Zimplats' 6E production in kOz
Harare- Zimplats, Zimbabwe’s leading platinum group metals producer, suffered a 24% quarter-on-quarter plunge in 6E metal in final product to 142,535 ounces for the quarter ended 30 September 2025, driven by extended slag tap-hole repairs at its smelter.
The outage trapped approximately 12,600 ounces in concentrate inventory, which will be processed over the remainder of FY2026.
Despite achieving zero lost-time injuries, a notable safety milestone, the production shortfall also reflected a 5% year-on-year decline, highlighting critical downstream vulnerabilities amid stable mining operations.
Mining tonnage dipped just 1% from the prior quarter and remained flat year-on-year, with disciplined underground output from Bimha, now the largest mine by ore volume, and Mupani offsetting planned depletion at the South Pit open-pit operation.
However, the 6E head grade weakened 1% quarter-on-quarter and 2% year-on-year, a result of exhausting high-grade pillars at the depleted Rukodzi Mine and increasing reliance on lower-grade ore from South Pit and development zones at Mupani and Bimha.
While milled volumes held steady, concentrator recoveries fell 4% sequentially due to inconsistent ore supply and grade variability, contributing to a 6% drop in 6E metal in concentrate.
Cost pressures escalated sharply, with cash costs per 6E ounce surging 30% quarter-on-quarter and 27% year-on-year. Operating expenses rose 18% from the prior quarter due to salary adjustments, mill relines, conveyor belt replacements, and expanded smelter activity.
Year-on-year, costs climbed 21%, fueled by labour inflation, open-pit expenditures, and equipment maintenance. The absence of power credits, previously realized after the August 2024 commissioning of the 35MW Phase 1A solar plant, further amplified cost inflation. Although $10.7 million in costs were capitalized into inventory due to the smelter delay, the underlying trend signals sustained margin compression without swift volume recovery.
Strategically, Zimplats remains pivotal in offsetting Zimbabwe’s PGM supply gaps as smaller producers falter. The Mupani Mine, designed to replace depleted Rukodzi and Ngwarati operations, is 91% financially complete with $352 million spent of a $386 million budget and remains on track to reach 3.6 million tonnes per annum by FY2029. However, near-term grade dilution from development ore will persist until high-grade zones are accessed in FY2028–2029.
The ongoing smelter expansion and SO2 abatement project, with $461 million committed against a $544 million budget, will improve processing reliability and environmental compliance once completed, though final timelines remain pending.
Looking ahead to Q2–Q4 FY2026, smelter repairs should restore full functionality, enabling a 15–20% sequential increase in 6E output in Q2 as inventory is cleared, with full recovery potentially extending into Q3. Mupani’s ramp-up will gradually lift underground tonnage, though meaningful grade improvement is unlikely before FY2028.
Cost inflation will continue due to annual labour adjustments and elevated smelter running costs, partially offset by power credits from the 45MW solar Phase 2A plant starting late Q3. Back-end investments like the Selous tailings facility extension and Base Metal Refinery refurbishment ($35 million spent of $190 million) ensure long-term sustainability but offer no near-term production uplift.
Therefore, Q1 performance reveals acute smelter and grade transition risks that constrain Zimplats’ ability to expand its role as Zimbabwe’s PGM supply stabilizer. Output should stabilize near prior-year levels by Q4 assuming consistent smelter uptime, but market share gains remain improbable over the next nine months. Long-term success hinges on disciplined execution of Mupani and smelter modernization, delivering not just replacement but expanded capacity, albeit against a backdrop of elevated costs and operational oversight demands.
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