- Zimplats reported a 7% decline in mined volumes for the HY to FY25, from 1,915,000 tonnes in 2023
- PGMs prices fell significantly in 2024, with Amplats projecting a 46% fall in headline earnings
- Palladium prices dropped by 24%, and rhodium prices decreased by 30%, forcing Zimplats to scale back projects.
Harare-Zimbabwe's largest corporate entity, Zimbabwe Platinum (Zimplats), has recorded a 7% decline in mined volumes in the half year to full year 2025 from 1 915 000 tonnes in 2023 according to the group’s latest financials.
The decrease in mining volumes was attributed to poor trackless mobile machinery (TMM) availability and intermittent power supply interruptions at the operations.
Poor trackless mobile machinery refers to equipment used in mining, construction, and other industrial settings that lack a defined track system for movement. Instead, these machines operate on wheels or other mobile platforms.
"Mined volumes were hampered by poor TMM availability and intermittent power supply interruptions, which impeded momentum during the period," the group said.
PGMs prices decreased in 2024 with by huge margins with the world’s biggest platinum group metals producer, Amplats projecting a headline earning to fall by 46% to between 7.6 and 9 billion Rand (408.1 million to 484.1 million IS dollars).
Palladium prices fell by 24% while Rhodium went down by 30% forcing Zimplats to scale back some projects leading to reduced production
The production’s subpar performance was exacerbated by chronic electricity blackouts of up to 18 hours in other areas.
In response , a 35MW Solar Plant in August 2023 was completed at the Selous Metallurgical Complex. This project diversifies the energy supply and contributes to the company's sustainability goals.
In tandem with production, milled volumes decreased by 6% year-on-year and were 8% lower than the preceding quarter because of lower ore supply attributed to reduced exploration and extraction due to lower commodity prices.
As a result, operational costs have also risen, with total operating cash costs increasing by 3% year-on-year and quarter-on-quarter due to higher power costs as the company has to rely on back-up generators and importing electricity.
The total 6E concentrate volumes reached 158,803 ounces, reflecting a 5% year-on-year decrease and a 4% decrease compared to the previous quarter.
The cash costs per ounce rose to US$935, representing a 13% year-on-year increase and an 11% quarter-on-quarter increase but the cash costs of metal produced decreased by 10% year-on-year and 4% quarter-on-quarter, highlighting operational efficiencies.
On the upside,6E head grade improved by 1% year-on-year, benefitting from increased tonnage from higher-grade zones at Rukodzi and Mupani mines while concentrator recovery increased by 1% and 4% from the previous quarter, indicating improvements in processing efficiency.
In response to the current market landscape, Zimplats scaled back exploration activities due to depressed international metal prices and shifted its focus toward leveraging data analysis and resource modeling to optimize production strategies.
The company have invested US$1.8 billion in its capital expenditure programs and other projects as of 31 December 2024.
The production from Ngwarati Mine was successfully replaced by higher output from the ramp-up in pillar reclamation at Rukodzi Mine and production volumes from Mupani Mine with 3.6 million tonnes per annum planned for H1 FY2029.
Zimplats is undertaking a US$544 million Smelter Expansion and SO₂ Abatement project to enhance processing capabilities and minimize environmental impact and a Base Metal Refinery Refurbishment, with US$32 million spent out of a total budget of US$190 million.
Equity Axis News
