Zimplats Faces Safety and Grade Challenges Amid Expansion
Zimplats reported a 14% rise in mined volumes and a 21% increase in final metal output year-on-year, alongside a 20% drop in cash costs per ounce, driven by operational gains and smelter expansion.
- 14% year-on-year increase in mined volumes
- 21% rise in final 6E metal output year-on-year
- 20% reduction in operating cash costs per ounce
- Expanded smelter commissioning boosts production
- Major capital projects progressing on schedule and budget
Production Growth and Operational Highlights
Zimplats Holdings Limited has delivered a solid quarterly performance for the period ended 30 June 2025, reporting a 14% increase in mined volumes compared to the same quarter last year, and a 4% rise from the prior quarter. This growth was primarily driven by increased ore extraction from the open pit, which contributed to higher overall throughput.
Despite a slight 1% year-on-year decrease in milled volumes, the company achieved a 19% increase from the previous quarter, reflecting operational improvements and the benefits of recent capital investments. The 6E head grade, a key measure of platinum group metals content, improved by 2% year-on-year, although it was marginally lower quarter-on-quarter due to a greater proportion of lower-grade open-pit ore.
Metal Output and Cost Efficiency
Final 6E metal in product surged by 21% year-on-year and 34% from the prior quarter, reaching 21,186 ounces. This uplift was supported by the commissioning of the expanded smelter, which has enhanced processing capacity and concentrate recoveries, the latter improving by 1% compared to the prior year. The increased metal output was accompanied by a notable 20% reduction in operating cash costs per 6E ounce to US$822, underscoring improved cost efficiency. This was achieved despite an 8% rise in total operating costs, aided by credits from the solar power plant and volume gains.
Safety and Exploration
Safety remains a priority for Zimplats, with one lost-time injury recorded during the quarter. The company is implementing remedial action plans to prevent recurrence, reaffirming its commitment to a safe working environment for employees and contractors. On the exploration front, drilling activities continued with eight holes logged and sampled, focusing on the Bimha and Mupani mines, which are key to sustaining future production.
Capital Projects Update
Zimplats is advancing several major capital projects on schedule and within budget. The Mupani Mine development, set to replace the depleted Rukodzi and Ngwarati mines, is progressing well with US$345 million spent out of a US$386 million budget, targeting 3.6 million tonnes per annum production by the first half of FY2029. The smelter expansion and SO2 abatement plant project has completed its first phase, with US$456 million invested against a US$544 million budget.
Additionally, the 35MW solar plant, commissioned in August 2024, has reached its design generation capacity, delivering sustainable energy benefits. The Base Metal Refinery refurbishment and the Selous Metallurgical Complex tailings storage facility extension are also underway, supporting long-term operational capacity.
Bottom Line?
With production gains and cost efficiencies firmly in place, Zimplats is poised to capitalize on its expanding infrastructure and sustain growth momentum.
Questions in the middle?
- How will the expanded smelter impact production and costs in the coming quarters?
- What are the expected timelines and risks for the Mupani Mine reaching full production?
- How might fluctuating ore grades from open-pit mining affect future metal output and profitability?
