• Zimplats reported a 3,376% surge in profit after tax to US$143.7 million for HY26, driven by strong platinum group metal (PGM) price recovery and improved operations
• Revenue jumped 83% to US$641.8 million, with average basket prices rising 66% and 6E sales volumes increasing to 308,598 ounces
• Production and mining activity strengthened, while ongoing capital projects including the Mupani Mine development and solar expansion position the group for sustained output growth

Harare - Zimplats Holdings Limited, Zimbabwe's largest platinum producer, has recorded a 3,376% increase in profit after tax to US$143.7 million from US$4.1 million in the comparative period, according to the company's condensed consolidated interim financial statements for the half year ended 31 December 2025, released to the Australian Securities Exchange on 26 February 2026.

The result  one of the most dramatic single-period turnarounds in the company's history  was driven by a sharp recovery in platinum group metal (PGM) prices across nearly the entire commodity basket, amplified by meaningful operational improvements at the company's mines and processing facilities on the Great Dyke in Zimbabwe.

Revenue surged 83% to US$641.8 million from US$350.2 million in the same period a year ago. If the current performance trajectory is maintained in the second half of the financial year, Zimplats is on course to clock annual revenue exceeding US$1 billion for the full year.

The engine behind that growth was price, average metal prices rose 66% across the group's basket, translating into gross revenue of US$2,080 per six-element (6E) ounce sold, compared to US$1,252 in H1 FY2025  an improvement of US$828 per ounce.

Sales volumes also rose, with 308,598 6E ounces sold compared to 279,740 ounces in the prior comparable period.

The price recovery was broad-based. Platinum, the group's largest revenue contributor at US$230.2 million, averaged US$1,529 per ounce  a 58% improvement on the US$965 per ounce realised in the comparable period.

Palladium averaged US$1,319 per ounce, up 33% from US$991. Rhodium averaged US$7,072 per ounce, up 55% from US$4,565, recovering some ground after its spectacular collapse from the US$29,000-per-ounce highs touched in 2021 while Gold, sustained by persistent safe-haven demand and sustained central bank buying globally, averaged US$3,799 per ounce, a 48% increase.

The standout performer in percentage terms was ruthenium, a minor PGM with growing applications in electronics and data storage. Ruthenium averaged US$839 per ounce, more than doubling from US$376  a 123% increase. Cobalt prices also surged 90% to US$19 per tonne, and silver rose 57% to US$47 per ounce.

The only metals that moved against the broader trend were iridium, which averaged US$4,286 per ounce, a marginal 2% decline, and nickel, which fell 7% to US$14,943 per tonne, weighed down by oversupply from Indonesian laterite producers and softer battery materials demand.

From a revenue composition perspective, palladium contributed US$167.9 million, rhodium US$106.9 million, gold US$60.4 million, nickel US$34.3 million, copper US$18.8 million, and iridium US$14.6 million. Ruthenium contributed US$7.7 million and cobalt US$249,000.

Mined volumes increased 8% to 4.2 million tonnes from 3.9 million tonnes, benefiting from improved trackless mobile machinery (TMM) availabilities, productivity enhancement initiatives, and the resuscitation of open pit mining  an operation that had been suspended and whose return added meaningful tonnes to the production profile. Tonnes milled rose 5% to 4.0 million tonnes, aided by fewer mill reline shutdowns.

Total 6E metal production grew 13% to 316,765 ounces. Platinum output rose 12% to 146,507 ounces, palladium 15% to 123,762 ounces, rhodium 19% to 13,283 ounces, ruthenium 11% to 11,425 ounces, gold 13% to 16,473 ounces, and iridium 5% to 5,315 ounces. Silver production jumped 20% to 29,753 ounces, while nickel and copper each rose 16%.

The production uplift was further supported by stronger concentrator output. The prior comparable period had been constrained because the expanded smelter furnace was still in its ramp-up phase, causing concentrate to accumulate in inventory rather than being processed through to saleable metal  a bottleneck that has since been resolved.

Mill head grade for the 6E basket dipped to 3.30 grams per tonne from 3.38 grams per tonne, attributed to below-budget head grade. While modest, grade dilution is a metric long-term investors in PGM miners monitor closely as a leading indicator of ore body quality.

The group repaid US$33.2 million in bank borrowings during the period. Total borrowings fell to US$72.0 million from US$100.2 million at 30 June 2025, a deleveraging trajectory that gives management increasing flexibility to fund its capital programme from internal resources.

Behind the headline numbers lies a capital programme of considerable ambition  The development of Mupani Mine  designed to replace the ageing Ngwarati, Rukodzi, and part of Mupfuti mines  remains firmly on schedule. Full production capacity of 3.6 million tonnes per annum is targeted for the first half of FY2029. Cumulative expenditure as at 31 December 2025 stood at US$360 million against an approved budget of US$386 million.

The smelter expansion and Phase 1 of the sulphur dioxide (SO₂) abatement plant is technically complete, with converter commissioning finalised in December 2024. The expanded furnace increases smelting capacity from 135,000 tonnes per annum of concentrate to approximately 380,000 tonnes per annum  equivalent to raising converter matte capacity from around 535,000 to 1.1 million 6E ounces. US$466 million has been spent of a US$544 million total project budget.

On renewable energy, following the commissioning of the Phase 1A 35MW solar plant in August 2024, the company commenced implementation of a Phase 2A 45MW expansion in the first quarter of FY2026. Expected to be complete in H1 FY2027 at a total project cost of US$54 million, it will bring total solar generation to 80MW providing meaningful energy security in a country where grid power reliability remains a structural risk for large industrial operations. US$24 million had been spent on the solar expansion as at 31 December 2025.

The base metal refinery (BMR) refurbishment  targeting a capacity of 5,200 tonnes of nickel  has been deferred outside the current five-year business plan, with US$36 million of a US$190 million budget already spent. The deferral signals a prioritisation of core PGM processing infrastructure in the near term.

On  the downside ,Zimbabwe's export retention regime  which requires exporters to surrender a portion of foreign currency earnings to the Reserve Bank of Zimbabwe (RBZ) in exchange for Zimbabwean Gold (ZWG) continues to create balance sheet complexity according to the miner .

At 31 December 2025, Zimplats had US$78.1 million held by the RBZ in a deferred liquidation account awaiting conversion to local currency. That balance has grown steadily it was US$55.5 million at June 2025 and US$30.3 million at December 2024  reflecting both higher revenues and what the company an intermittent releases of local currency resulting from tight monetary and fiscal policy.

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