- Production Decline: 15% decrease in 6E (platinum group metals) production, totalling 279,890 ounces for the half-year ended December 31, 2024
- Overall mined volumes dropped by 2.5% to 3.9 million tonnes from 4.0 million tonnes in the prior period
- Revenue decreased by 6% to US$350.2 million, influenced by a 13% reduction in sales volumes to 279,700 ounces
Harare-Zimbabwe's largest corporate entity, Zimbabwe Platinum (Zimplats), a subsidiary of Impala Platinum, has reported a 15% decrease in 6E (platinum group metals) production, amounting to 279,890 ounces for the half-year ended 31 December 2024, as detailed in the group’s latest financial update.
This downturn was driven by multiple production challenges, including lower-than-expected concentrator output, increased furnace lockup, and delays in commissioning expanded smelter converters, which collectively resulted in an accumulation of 23,191 6E ounces between concentrate and final production during the period.
Overall mined volumes declined by 2.5% to 3.9 million tonnes from 4.0 million tonnes in the prior comparable period, leading to a 2.6% drop in milled volumes to 3.8 million tonnes, primarily due to a reduced ore supply.
Group Chief Executive Officer Alex Mhembere attributed these setbacks to poor availability of trackless mobile machinery (TMM) at the Mupfuti, Bimha, and Mupani mines, intermittent power supply interruptions at operations, and a sluggish ramp-up at Bimha Mine following several injuries.
Compounding these operational difficulties, significant declines in metal prices further strained Zimplats’ performance in 2024, with palladium prices falling by 15% prompting the company to scale back key projects such as sulphur abatement and the second phase of its solar power plant, which in turn contributed to reduced production levels.
As a result, revenue decreased by 6% to US$350.2 million, impacted by a 13% reduction in sales volumes to 279,700 ounces.
Despite these challenges, Zimplats achieved a profit after tax of US$4.1 million, a notable turnaround from the US$8.8 million loss recorded in the previous comparable period, largely due to improved average prices for most metals except palladium, nickel, and cobalt compared to the prior year, with gold prices surging by 32%, rhodium by 17%, silver by 30%, and platinum by 5%.
Looking ahead, Zimplats is prioritizing capital projects to maintain production stability, focusing on expanding processing capacity, refurbishing the base metals refinery, and securing renewable power generation to bolster future operations.
The Mupani Mine development remains on track, with full production of 3.6 million tonnes per annum targeted for the first half of FY 2029, while the Bimha Mine upgrade has been completed, achieving a production capacity of 3.1 million tonnes per annum.
The smelter expansion project is now technically complete, increasing smelting capacity from 135,000 tonnes per annum to 380,000 tonnes per annum, and the refurbishment of the base metals refinery is underway, aiming for a capacity of 5,200 tonnes of nickel equivalent.
On the energy front, the Solar PV Plant Phase 1A has been commissioned, generating 35 megawatts of power, while Phase 2A has been approved for the development of a 45-megawatt solar plant.
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