Higher throughput lifted concentrate production by 5%, leaving 24,000 ounces in inventory as lower grade and delayed fleet spending shape the FY2027 production test

• Zimplats increased tonnes milled by 7.7% to 8.05 million tonnes as average 6E grade declined by 2.3% to 3.29 grams per tonne
• Concentrate production rose by 5% to 660,400 6E ounces, with scheduled furnace maintenance holding production in matte at 606,300 ounces
• Implats’ group capital expenditure reached approximately R7.2 billion (US$430.5 million), below guidance partly due to timing delays affecting fleet expenditure at Zimplats

Harare - Zimplats increased tonnes milled by 7.7% to 8.05 million tonnes during the year ended 30 June 2026, with lower grade and scheduled furnace maintenance preventing the additional throughput from lifting production in matte above 606,300 6E ounces. The result places the FY2027 operating focus on converting accumulated concentrate, managing the grade profile and completing delayed fleet expenditure.

The Implats controlled operation processed 575,000 more tonnes than the 7.47 million tonnes milled in FY2025. Average 6E grade declined from 3.37 grams per tonne to 3.29 grams per tonne, reducing the contained metal available from each tonne entering the concentrator. Higher throughput absorbed part of that decline and lifted concentrate production by 5% to 660,400 ounces.

Scheduled furnace maintenance interrupted the next stage of production and left approximately 24,000 ounces in concentrate inventory at year end. The accumulated volume is equivalent to almost 4% of Zimplats’ annual matte production and has already moved through mining, milling and concentration.

Its contribution to FY2027 output now depends on furnace availability and downstream recoveries. Efficient conversion would allow Zimplats to release additional metal from existing inventory before relying on fresh ore moving through the full production cycle.

The FY2026 performance shows that higher ore throughput does not automatically produce equivalent growth in finished metal. Zimplats expanded the volume moving through its mining and concentration system, although the lower grade reduced the metal recovered from every tonne and furnace maintenance stopped the increase from reaching matte production.

This relationship places greater importance on mine planning, ore blending and concentrator recovery. Continued grade pressure would require additional throughput or higher recovery rates to maintain production, increasing demands on mining equipment, milling capacity, electricity, reagents and plant maintenance.

Zimplats processed 7.7% more tonnes to generate a 5% increase in concentrate production. The difference captures the operating effort required to protect ounces as the grade profile weakens.

The commercial return from higher throughput will depend on whether the additional metal recovered exceeds the incremental cost of mining and treating the extra tonnes. Implats expects group unit costs to increase by 8% to approximately R24,250 (US$1,450) per stock adjusted 6E ounce. The figure applies across the Implats portfolio and does not represent Zimplats’ standalone cost.

Implats identified energy inflation and additional discretionary expenditure on maintenance and infrastructure at Zimplats and Impala Rustenburg among the cost drivers. The disclosure places recovery, processing stability and equipment reliability at the centre of Zimplats’ cost management programme.

Higher recovery spreads mining, plant and infrastructure expenditure across more ounces. Furnace interruptions delay conversion after much of the mining and concentration cost has already been incurred. Reliable fleet performance protects ore supply to the concentrators and supports development required to maintain future production areas.

The pricing environment increases the value of resolving these operating constraints. Implats reported a more than 50% increase in group sales revenue to approximately R38,100 (US$2,278) per 6E ounce following broad appreciation in precious and base metal prices. The measure covers the group and does not disclose Zimplats’ realised price.

Implats increased refined and saleable production by 5% to 3.56 million 6E ounces and raised sales volumes by 4% to 3.51 million ounces. Stronger processing performance at the group’s South African assets also reduced excess work in process inventory from 420,000 ounces to 300,000 ounces.

Zimplats enters FY2027 with its own inventory conversion requirement. Moving the 24,000 ounces through the furnace would raise matte production and increase the metal available for downstream refining during a period of stronger PGM pricing.

Capital execution will support the throughput required after that inventory has been cleared. Implats expects group capital expenditure of approximately R7.2 billion (US$430.5 million), below its guidance of R8 billion (US$478.4 million) to R9 billion (US$538.2 million). The group attributed part of the underspend to timing delays affecting fleet expenditure at Zimplats.

Implats did not disclose the value of the delayed Zimplats fleet purchases or provide a revised deployment timetable. The expenditure therefore moves into the FY2027 execution programme, with its production contribution dependent on procurement, delivery and commissioning.

The fleet programme matters because higher throughput increases equipment requirements across ore extraction, development and material movement. Delayed deployment can increase utilisation pressure on the existing fleet and reduce operating flexibility where maintenance requirements rise.

Zimplats now carries four measurable operating priorities. The company must convert the 24,000 ounces accumulated during furnace maintenance, sustain furnace availability, protect recovery from lower grade feed and complete the delayed fleet programme.

The FY2026 result confirms that the operation can expand milling volumes and increase concentrate production. Flat matte output identifies the point where that growth stopped moving through the value chain.

Higher PGM prices increase the revenue available from every additional saleable ounce and raise the cost of leaving metal inside work in process inventory. Zimplats has already created the upstream volume required for production growth. FY2027 must convert that volume into additional matte and more metal available for downstream refining.