- Year-on-year decline in 6E concentrate production (20%) and mining volumes (11%) in Q3 2025
- Facing operational bottlenecks, including shortages of trackless mobile machinery (TMM) and lost-time injuries, particularly at Bimha Mine
- Operating cash costs rose, leading to a surge in 6E cash unit costs (25% year-on-year)
Harare- Zimplats, Zimbabwe’s preeminent corporate and platinum producer, confronted a severe production contraction that endangers its critical fiscal contributions.
As the nation’s largest taxpayer, delivering US$258 million in taxes and royalties in 2021, approximately 6% of the Zimbabwe Revenue Authority’s (ZIMRA) collections Zimplats’ 20% year-on-year decline in 6E concentrate production signals concern.
This downturn stems from operational bottlenecks, plummeting platinum group metal (PGM) prices, and retrenchments. These challenges align with broader market dynamics, including a volatile rare earth metals (REM) market driven by rising demand and supply constraints, reflecting the urgency for fiscal reforms.
However, a robust US$1.8 billion capital expenditure program and advocacy for reduced taxes position Zimplats for recovery. Comparative analysis with peerslike Anglo American Platinum (Amplats), Impala Platinum (Implats), and Sibanye-Stillwater reveals shared pressures, emphasising the need for tailored government intervention.
Operational and Financial Strain in Q3 2025
Zimplats’ Q3 2025 performance was marred by an 11% year-on-year drop in mining volumes, driven by shortages of trackless mobile machinery (TMM) and exacerbated by lost-time injuries at Bimha Mine. The company revived open-pit mining in January 2025, contributing 76,000 tonnes (4.3% of mined volumes), but lower-grade open-cast ore diluted the 6E head grade (platinum, palladium, rhodium, ruthenium, iridium, and gold) by 1% quarter-on-quarter, despite a 1% year-on-year gain from improved underground ore.
Milled volumes fell 17% year-on-year and 8% quarter-on-quarter, with concentrator recoveries stable year-on-year but down 1% from Q2 2025. Processing disruptions, including 38MW furnace optimization and smelter converter delays, slashed 6E concentrate production by 20% year-on-year to 135,172 ounces, with 12,100 ounces locked in furnace reverts and matte.
Final 6E metal production of 139,506 ounces fell 16% year-on-year but rose 8% quarter-on-quarter, with 16,000 ounces of in-process inventory slated for Q4 FY2025 release.
Financially, operating cash costs rose 3% year-on-year, driven by smelter power costs, open-pit operations, and maintenance. The 6E cash unit cost surged 25% year-on-year to US$1,026 per ounce, reflecting a 6% year-on-year and 18% quarter-on-quarter increase in production costs, worsened by lower volumes.
A 2% quarter-on-quarter cost reduction and a US$6.4 million stock-to-operating cost transfer provided marginal relief, but these metrics show operational inefficiencies amplified by market pressures.
PGM and Rare Earth Metals Market Dynamics
The global PGM market in 2025 remains volatile, with structural deficits offset by high inventories and recycling growth. Palladium and rhodium prices fell 24% and 30% in 2024, with palladium dropping another 15% in the half-year to December 2024. Platinum averaged US$960/oz, palladium US$1,030/oz, and rhodium US$4,750/oz in 2024, constrained by weak automotive demand (40% of platinum, 80% of palladium, 90% of rhodium).
Electric vehicle (EV) growth (14% of auto production in 2023) and PGM thrifting reduced demand, though hydrogen fuel cell adoption offers long-term potential. These trends drove Zimplats’ 2023 loss, with revenues down 32% to US$372.8 million.
Conversely, the rare earth metals (REM) market is booming, driven by clean energy and high-tech demand. Valued at US$12.44 billion in 2024, it is projected to reach US$37.06 billion by 2033, with a CAGR of 12.83%.
Neodymium, praseodymium, and dysprosium are critical for EV motors and wind turbines, while cerium supports catalytic converters. China’s 60% control of mine production and 90% of refining, coupled with 2025 export restrictions on seven REMs, drives diversification efforts, such as MP Materials’ US$58.5 million U.S. magnet facility.
Recycling and new projects, like Australia’s Nolans, aim to reduce reliance on China, though environmental and cost barriers persist. The REM market’s growth contrasts sharply with PGM stagnation, highlighting Zimplats’ exposure to PGM volatility.
Fiscal Contributions and Policy Pressures
Comparative Analysis with Global Peers
Zimplats’ challenges mirror those of PGM peers, but its low-cost operations offer an edge. Amplats’ 73% profit drop in 2024 prompted potential cuts of 3,700 South African jobs, leveraging mechanisation and its 2019 Unki smelter.
Implats cut 1,000 jobs in 2023, reduced output by 14% for 2025–2027, and saw a 90% earnings fall. Sibanye-Stillwater’s US$2 billion 2024 loss led to 2,600 South African job cuts and 33 at Mimosa, halting a US$100 million expansion. Zimplats’ 1% workforce reduction is modest, targeting a 600,000-ounce annual PGM output.
Government concessions, like reducing royalties on platinum is key. A revised fiscal regime, mirroring Mozambique’s Mozal tax holiday, could unlock investment. Zimplats’ US$1.8 billion pipeline includes the Mupani Mine (US$342 million of US$386 million spent, 3.6 million tonnes by H1 FY2029), a US$544 million smelter project (US$452 million spent), a 35MW solar plant (commissioned 2024, US$37 million), and the BMR (US$33 million of US$190 million). Exploration drilling (2,178 meters) ensures resource longevity.
Therefore, Zimplats’ Q3 2025 crisis, driven by operational inefficiencies and a stagnant PGM market, contrasts with the surging REM market, exposing its vulnerability to PGM volatility. While its restrained retrenchments and low-cost operations distinguish it from Amplats, Implats, and Sibanye-Stillwater, fiscal relief is critical to sustain its fiscal role.
Strategic investments position Zimplats to weather PGM challenges, but exploring REM opportunities could further secure its economic dominance.
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