Itai Ndongwe
HARARE – Zimplats’ second quarter results demonstrate the company’s resilience in a depressed platinum market, with production increasing by 4% to 2 046 tonnes from 1 973 tonnes recorded in the same period last year.
This growth was driven by ore from the Open Pit, which contributed 7% and 145 300 tonnes to total mined volumes in the quarter.
Compared to the previous quarter, mined volumes increased by 14%. According to the company’s second quarter update ended June 30, 2025, 6E head grade improved by 2% from the prior comparable period, but was marginally lower quarter-on-quarter, primarily due to the increased contribution of lower-grade open-pit ore. However, 6E metal in the final product increased by 21% to 186,946 ounces from the prior comparable period and 34% from the prior quarter.
Volumes benefited from the release of approximately 21,300 ounces of 6E from previously accumulated inventory during the commissioning of the expanded smelter. Concentrator recoveries improved by 1% from the prior comparable period and benefited from operating at higher mass pull following the commissioning of the expanded smelter complex, while remaining largely stable compared to the prior quarter.
6E concentrate production increased by 4% to 167,963 ounces from the prior comparable period and was 24% higher than the prior quarter. Metal in concentrate volumes benefited from higher milled throughput, whereas the prior quarter reflected the negative impact of assay adjustments from the previous period.
The company’s total operating costs increased by 8% from the prior comparable period and were 1% higher than the prior quarter, as costs were impacted by higher labor costs following wage adjustments, expenses associated with open-pit operations, and higher equipment maintenance costs.
However, costs benefited from credits for power generated from the solar plant. Some previously accumulated concentrate, reverts, and furnace matte stocks were processed during the quarter, resulting in the transfer of US$16.1 million from stocks to operating costs. The cash cost of metal produced, at US$822 per 6E ounce, remained stable year-on-year and declined by 20% from the prior quarter, benefiting from volume gains and solar power credits realized during the period.
During the period under review, the company made significant progress on its capital projects, with several key initiatives advancing as planned. The development of the Mupani Mine is on schedule, with US$345 million spent to date against a total budget of US$386 million, and full production of 3.6 million tonnes per annum expected in H1 FY2029.
Additionally, the smelter expansion and SO2 abatement plant project is progressing well, with US$456 million spent against a budget of US$544 million, and the first phase already complete. The 35MW solar plant project has been successfully commissioned and is operating at design capacity, completed on budget at US$37 million.
Other projects, including the Base Metal Refinery refurbishment and the Selous Metallurgical Complex Concentrator Tailings Storage Facility Extension, are also advancing, demonstrating the company’s commitment to investing in its infrastructure and operations.
