Source: Zimplats platinum production dips 11pc – herald
Business Reporter
ZIMPLATS, a major producer of platinum group metals (PGMs), reported lower mining volumes for the quarter ending March 31, 2025, primarily due to issues with the availability of trackless mobile machinery (TMM), resulting in an 11 percent year-on-year and four percent quarter-on-quarter decline.
To mitigate the shortfall, open-pit mining operations were resumed in January, contributing 76 000 tonnes, or 4,3 percent of total mined volume during the quarter.
The “6E” head grade — representing the combined grade of six precious elements including platinum, palladium and rhodium — recorded a marginal one percent year-on-year increase but declined one percent on a quarterly basis due to the inclusion of lower-grade open-pit ore.
Ore supply constraints contributed to a 17 percent year-on-year and eight percent quarter-on-quarter reduction in milled volumes.
Adjusted 6E concentrate production — the total ounces of the six metals contained in concentrate — fell by 20 percent year-on-year and 15 percent quarter-on-quarter to 135 172 ounces.
Final metal output was affected by furnace optimisation. While 60 000 tonnes of concentrate were smelted, clearing earlier inventory, approximately 12 100 6E ounces were tied up in furnace reverts.
Final 6E metal output stood at 139 506 ounces — 16 percent lower year-on-year but eight percent higher than the previous quarter. Zimplats expects to release around 16 000 6E ounces of in-process inventory in the next quarter.
The country’s largest PGMs producer recorded a three percent year-on-year increase in total operating cash costs, largely driven by higher electricity consumption from its new smelter, the resumption of open-cast mining, and the scheduled replacement of key engineering components.
Despite the annual increase, total operating costs were down two percent from the previous quarter due to lower variable costs arising from reduced mining and milling volumes.
“Total operating cash costs increased by three percent year-on-year and were negatively impacted by higher power costs of operating the 38MW new smelter, resuscitated open-cast mining operations and timing differences on the replacement of major engineering components.
“Total operating cash costs improved by two percent from the prior quarter, positively impacted by lower variable costs associated with lower mined and milled volumes,” the company said.
Zimplats also reported that US$6,4 million was reclassified from inventory to operating costs, following the processing of previously stockpiled concentrate.
Despite efforts to contain costs, the company recorded a six percent year-on-year increase in cash cost per ounce of metal produced, with an 18 percent rise from the previous quarter. This was reflected in the 6E operating cash unit cost, which rose to US$1 026 per ounce — up 25 percent year-on-year and 10 percent quarter-on-quarter.
“Lower reported volumes negatively impacted 6E operating cash unit costs,” Zimplats noted.
The company highlighted continued progress on its major capital projects.
The smelter expansion and sulphur dioxide (SO2) abatement plant have now consumed US$452 million of the allocated US$544 million budget.
In the renewable energy space, Zimplats achieved a key milestone with its 35MW solar power plant — commissioned in August 2024 — reaching full generation capacity by December 2024. The project was delivered on budget at US$37 million.
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