Zimplats Boosts Production and Cuts Costs Amid Major Project Progress
Zimplats reported a 15% year-on-year rise in mined volumes and a 6% quarter-on-quarter reduction in operating cash costs per ounce, while advancing key infrastructure projects on schedule.
- 15% increase in mined volumes year-on-year
- Stable 6E head grade quarter-on-quarter with a 3% decrease year-on-year
- Metal in final product up 22% quarter-on-quarter and 35% year-on-year
- Operating cash cost per 6E ounce down 6% quarter-on-quarter despite higher total costs
- Major projects including smelter expansion and solar power progressing on track
Production Growth and Operational Stability
Zimplats Holdings Limited has delivered a solid quarterly performance for the period ending 31 December 2025, with mined volumes increasing by 15% compared to the same quarter last year and 5% higher than the previous quarter. This growth was driven by improved equipment availability at the open pit and enhanced productivity underground, reflecting operational stability and effective management.
Despite the positive volume trends, the 6E head grade remained stable quarter-on-quarter but declined by 3% year-on-year due to a shift in ore mix. The depletion of the higher-grade Rukodzi Mine and the introduction of ore from a lower-grade open pit mine influenced this change, a factor investors will want to monitor in coming quarters.
Metal Output and Cost Efficiency
The company reported a significant increase in metal contained in the final product, rising 22% from the prior quarter and 35% compared to the previous year. This improvement was supported by the treatment of accumulated concentrate inventories and higher mill throughput, underscoring the benefits of operational enhancements implemented during the period.
On the cost front, total expenses rose 4% quarter-on-quarter and 22% year-on-year, primarily due to increased labour and mining equipment maintenance costs. However, operating cash costs per 6E ounce improved by 6% from the prior quarter, signalling better cost control and efficiency gains despite the higher total expenditure.
Safety and Exploration Activities
Safety remains a priority for Zimplats, with only two lost-time injuries recorded during the quarter. The company is actively implementing learnings from incident investigations to prevent recurrence and maintain a safe working environment for all personnel.
Exploration efforts continued with a surface core drilling programme at the Bimha and Mupani mining footprints, completing 24 holes and 7,074 metres of drilling. This work aims to upgrade reserve confidence and guide future decline development, signalling ongoing investment in resource growth.
Progress on Major Projects
Zimplats is advancing several major projects on schedule. The Mupani Development project is on track to reach full-scale production of 3.6 million tonnes per annum by FY2029. The smelter expansion and SO₂ abatement initiatives continue with cumulative spending of US$466 million against a budget of US$544 million.
The Phase 2A solar project is progressing well, with cumulative expenditure of US$24 million towards an 80MW capacity, aiming for completion in the first half of FY2027. Additionally, the Tailings Storage Facility expansion at the Selous Metallurgical Complex is nearing substantial completion, securing concentrator operations through to FY2049. The Base Metal Refinery refurbishment is also underway, with US$36 million spent against a US$190 million budget.
These developments highlight Zimplats’ commitment to sustainable growth and operational resilience amid evolving market conditions.
Bottom Line?
Zimplats’ blend of production growth, cost discipline, and project advancement sets a promising stage for the year ahead.
Questions in the middle?
- How will the changing ore mix affect future 6E head grades and metal output?
- What impact will rising labour and maintenance costs have on long-term profitability?
- Can ongoing major projects deliver on their timelines and budgets amid market uncertainties?
